Condo Fee Increases in Quebec

Condo fees are increasing in many syndicates, and boards of directors must explain these increases rigorously. In divided co-ownership, common expenses change according to actual operating costs, maintenance needs and legal obligations.

This article will help you understand why common expenses are rising, how to calculate a responsible increase and how to present it to co-owners without undermining trust. You will find practical guidelines, legal references and ways to ease pressure on the budget.

What is driving common expenses up today

Several factors combine to increase contributions. The most common are:

• Building insurance: more costly claims and stricter conditions are driving premiums up.
• Energy and services: electricity, gas, water, telecommunications and waste collection are taking up a larger share of the budget.
• Labour and contracts: janitorial services, snow removal, landscaping and security are following inflation.
• Preventive and corrective maintenance: deferred repairs cost more in the long term than planned maintenance.
• Compliance obligations: the maintenance logbook/EUC and contingency fund study arising in particular from Bill 16 require professional mandates and careful planning.

The Civil Code of Quebec requires the syndicate to administer the common portions, preserve the building and establish a contingency fund suited to its needs (see C.C.Q.). These duties, reflected in RGCQ best practices, often justify an increase when previous levels were insufficient.

Remember that the declaration of co-ownership (DCV) often sets out how expenses are shared between common portions and, where applicable, certain restricted-use common portions. The key is to align the budget with the syndicate’s actual, documented obligations.

Calculating a responsible and predictable increase

A well-prepared increase is based on data, not a simple rule of three. Here is a four-step process:

1. Update the expense history
   • Group expense items by category (insurance, energy, contracts, maintenance, administration, contingencies).
   • Compare the last 2-3 fiscal years and isolate non-recurring items.
2. Project the coming year
   • Request quotes or renewal notices for the main contracts and the insurance policy.
   • Include the maintenance work scheduled in the maintenance logbook/EUC (e.g. facade inspections, roof maintenance and system testing).
3. Align the contingency fund
   • Take the recommendations in the contingency fund study into account to target a healthy funding level, in accordance with the C.C.Q. and your declaration of co-ownership.
   • If catch-up funding is needed, plan it in stages to remain predictable.
4. Determine the increase and schedule
   • Calculate the impact per unit according to the relative share.
   • Choose between a smoothed annual increase or a combination with a special assessment when required for a one-time project.

Simplified impact analysis example

This table illustrates how a total increase of 6 to 8 % can result from specific pressures, even before catch-up funding for the contingency fund is included. The contingency fund study and maintenance logbook guide the required adjustment and help avoid chronic underfunding.

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Governance and procedure: who decides and when

• Role of the board of directors: the board of directors prepares the annual budget, aligns forecasts with the co-ownership’s obligations and sets contributions in accordance with the declaration of co-ownership and the C.C.Q. It also monitors contracts and the performance of approved work.
• Meeting of co-owners: the annual general meeting is the preferred opportunity to present the budget, explain increases and answer questions. The minutes must record the relevant discussions and decisions.
• Notice and schedule: send clear notice of the new contributions, due dates and payment methods. Follow the mechanisms set out in the declaration of co-ownership.
• Special assessments: when one-time work exceeds the capacity of the regular budget, a special assessment may be considered, with detailed communication about the project, the call for tenders and the schedule.

For guidelines on budget planning and governance, consult the RGCQ, a Quebec reference for co-ownership best practices.

Communicating the increase without undermining trust

Transparency reduces resistance. Here are some practical tools:

• Break down the increase by item and explain the variances (insurance, energy, contracts and contingency fund).
• Support it with documents: a budget summary, quote appendices, relevant excerpts from the maintenance logbook/EUC and the contingency fund study.
• Show the impact: monthly amounts by typical unit and a 12-month projection.
• Explain the “why” and the “when”: what risks are being avoided (penalties and major damage), and what work schedule is planned.
• Open channels for discussion: a question period before the annual general meeting, an information capsule and a recap newsletter with FAQs.

You can also direct co-owners to our blog for educational articles on condominium management.

Reducing pressure on common expenses: practical options

• Contracts and calls for tenders: put your key service providers out to bid every 2-3 years. Clearly define the scope of work, service levels and penalties for non-compliance.
• Preventive maintenance: following the maintenance logbook/EUC reduces breakdowns and extends the service life of components. Planning work in batches (e.g. grouped replacement of parts) creates economies of scale. See the Regie du batiment du Quebec (RBQ) guidelines for work compliance and selecting licensed contractors.
• Risk management and insurance: moisture controls, inspection of backwater valves, periodic replacement of water heaters and drain maintenance. Fewer claims mean better claims experience and less pressure on premiums over the medium term.
• Energy: adjust ventilation and heating schedules for common portions, optimize LED lighting and control energy loads. Certain energy-efficiency expenses may qualify for tax measures; confirm with Revenu Quebec.
• Financial governance: schedule operations (budget, renewals, calls for tenders and annual general meeting), monitor variances monthly and communicate any overrun early. Close monitoring costs less than a late reaction.

For structured support (budgets, calls for tenders and communication), see our packages.

Arrears and fairness among co-owners

An increase can reveal cash-flow pressures for some co-owners. The syndicate must protect fairness:

• Apply the payment terms set out in the declaration of co-ownership and remind co-owners of the deadlines.
• Set out interest and administrative late-payment fees in compliance with the C.C.Q.
• Act quickly: send a late-payment notice, issue a demand letter if necessary and follow up rigorously. Consistent enforcement protects the contingency fund and prevents the expenses of paying co-owners from increasing.

If you are unsure about the procedure, refer to the C.C.Q. and, if necessary, consult a legal professional.

FAQ – Condo fee increases

Q: How much can condo fees be increased at once?

A: The C.C.Q. does not set a specific numerical limit. The increase must reflect actual costs, maintenance planning and the contingency fund’s funding obligations. A gradual, documented approach is preferable.

Q: Is an annual general meeting required to adopt the increase?

A: The board of directors prepares the budget and sets contributions in accordance with the declaration of co-ownership and the C.C.Q., then presents everything at the annual general meeting for information and discussion. Always check your declaration of co-ownership for the applicable notice procedures and deadlines.

Q: How should expenses be divided between common portions and private portions?

A: Common expenses are charged according to the relative share and the rules in the declaration of co-ownership. Certain expenses related to restricted-use common portions may be allocated differently. Confirm this in the declaration of co-ownership and, if necessary, with a lawyer.

For the legal framework, consult the Civil Code of Quebec. For practical advice, the RGCQ provides resources for syndicates.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

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