July 2016
Purchasing a condo means purchasing access to amenities.
Over time, proactive condo boards will consider if specific amenity use justifies their expense. Underutilized amenities may no longer be of interest to residents. Even heavily used amenities may not justify their cost.
It may be appropriate to consider cutting back by eliminating certain amenities where that money could be better used elsewhere or to help reduce condo fees.
Condo buildings did not always include amenities. Over time amenities became a way for developers to distinguish their buildings. Soon every building had to have a fitness center, party room or even a swimming pool.
Condo corporations need to consider if they desire their amenities because they do come at a cost. Higher condo fees are needed to support them. Spending $50,000 a year to maintain a swimming pool used for no more than a couple of hours a day may not be the best way to manage condo corporation finances.
Budget expenditures should periodically be evaluated to ensure that funds are used wisely and this includes a re-evaluation of amenities.
Change is contentious. That minority of condo owners who may use the swimming pool may oppose its elimination even if the decision makes sense. Others may believe that an amenity adds “value” and can increase condo resale prices.
