What makes the condominium more expensive? Discover the main factors

The price of the condominium fee is one of the factors taken into account to decide whether or not the purchase of an apartment will happen. Therefore, understanding what justifies and what makes the charge more expensive is important for anyone looking for their own property.

In practice, the bill reflects the sum of expenses necessary to keep the enterprise running, with a direct impact on items such as staff, water and energy consumption, administrative services, building maintenance and leisure areas.

The weight of these factors varies depending on the profile of the condominium. A broader structure, with equipment for common use and frequent technical maintenance tends to cost more. Condominiums with a larger number of units tend to spread costs better, reducing the individual impact on each apartment.

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How the condominium fee is formed
In general, the condominium fee brings together fixed expenses and occasional expenses. Fixed costs usually include:

- Employee salaries and charges
- Water, electricity and gas bills
- Administrative expenses, such as bank fees, issuing invoices, hiring an administrator and, in some cases, exemptions or fees granted to the property manager

Day-to-day maintenance and upkeep costs also come into the account. Elevators, gardening, cleaning, small repairs, consumables and frequently contracted services make up an important part of this equation.

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In specific situations, the condominium can still absorb unplanned expenses, such as emergency repairs or urgent works.

The final value is divided between the condominium owners according to the rule set out in the convention. In some projects, the charge is the same for all units. In others, it follows the so-called ideal fraction, in which larger or more valued properties pay a proportionally greater portion.

What weighs most on the value of the condominium
The composition of the condominium fee can vary, but some items tend to put more pressure on the budget.

Employees and charges
Payroll, overtime, mandatory payments and labor costs are among the main components of the monthly expense. In condominiums with more robust concierge, cleaning, janitorial and operational support, this burden tends to be even greater.

Consumption and building operation
Water, energy and gas also directly influence the rate, especially when there is no individual measurement. In these cases, part of the consumption ends up being shared among all residents.

Administration and recurring services
Banking costs, administration, notary's office, post office, issuing bills and contracting general services are included in the monthly bill. Isolated, they may seem minor, but added together they help to increase the final value.

Building maintenance
Elevators, gates, security systems, gardening, painting and conservation of common areas generate ongoing expenses. The more complex the condominium structure, the greater the expenditure on preventive and corrective maintenance tends to be.

Why leisure areas tend to make condominiums more expensive
Leisure areas are among the most cited factors when it comes to expensive condominiums. The reason is simple: they generate permanent costs, not one-off expenses. Cleaning, conservation, water and energy consumption, equipment maintenance and hiring specialized services become part of the monthly operation of the enterprise.

According to Edmil Adib Antonio, director of Real Estate Credit and Institutional Relations with Banks at MRV, this impact is directly linked to the cost of maintaining these structures. The greater the number of items and the more complex the operation of the common areas, the higher the condominium fee tends to be.

Among the equipment that most often increase the bill are:

- Swimming pool
- Gym
- Air-conditioned party room
- Gourmet space
- Sports courts

In the case of a swimming pool, for example, the cost goes beyond cleaning the place. The condominium needs to pay for equipment, machinery, water treatment and continuous quality control.

The same reasoning applies to gyms and air-conditioned spaces, which require technical maintenance, electrical consumption and equipment replacement over time.

Can more units make the bill cheaper?
In general, yes. Condominiums with more units tend to spread fixed costs better, as the total value is divided among a greater number of residents. This does not mean, however, that every large condominium will necessarily be cheap. If the common structure is extensive or sophisticated, the gain in scale may be partially offset by the higher operating cost.

The central point is the balance between structure and apportionment. A condominium with few shared items and many units tends to be lighter on the pocket. A development with extensive leisure, a larger team and complex maintenance can remain expensive even with more residents participating in the division.

How the form of collection changes the perception of value
In addition to the size of the structure, the collection rule also influences the perception of the fee:

- Unit charging model: everyone pays the same amount, regardless of the property's size
- Ideal fraction charging model: larger or more valued units pay more

There is also a difference between prorated charging and a flat rate. In apportionment, the actual expenses for each month are added together and charged to the following period. In the fixed rate, the condominium projects the costs for the year, applies expected adjustments and distributes a monthly average among residents, generally with approval at a meeting. In both cases, extraordinary expenses may appear separately, especially when it comes to urgent works or unforeseen repairs.

How to know if the value is fair
Analysis of the value of the condominium should not be limited to the price on the invoice. To know whether the charge is coherent, it is necessary to observe the structure offered and the quality of management.

Among the main points of attention are:

- Accounts presented by the property manager
- Destination of expenses
- Comparison with similar condominiums
- Quality of contracted services
- Volume of common areas and equipment available
- Number of units participating in the apportionment

The construction company MRV's guidance is that the resident monitors the financial statements, observe the destination of the expenses and compare the structure of the project with the fee charged to assess whether the value is compatible with what is offered.

What to consider before buying
For those who are evaluating a property, the condominium fee should be included in the account from the beginning. It is not enough to just compare the sales price or the rental price. A high-rise condominium can significantly change the total cost of housing in the medium and long term.

It's also worth looking beyond the advertising in common areas. Swimming pool, gym and party room can be important attractions, but each leisure item tends to add a recurring cost to the enterprise. In some cases, the structure makes sense for the resident's profile. In others, it represents a monthly expense for little-used spaces.

FAQ ― Frequently asked questions
What makes a condominium more expensive?
The main factors are payroll, utility bills, building maintenance, administration and leisure areas that require continuous operation.

Does the swimming pool make the condominium more expensive?
Yes. Swimming pools tend to have higher fees as they require water treatment, equipment, energy and frequent maintenance.

Does the gym and party room also weigh on the bill?
Yes. These spaces generate costs for cleaning, conservation, air conditioning, energy and equipment maintenance.

Are larger condominiums cheaper?
In general, they can spread costs better. Still, the value depends on the size of the structure and the level of maintenance required.

Does the billing method change the amount paid?
It can change. In some condominiums, everyone pays the same; in others, the charge follows the ideal fraction and larger properties pay more.

Source: CNN