Frequently Asked Questions – About Property Maintenance Costs & Fees

Property maintenance is calculated by assessing the ongoing, routine, and preventative tasks required to keep a property safe, functional, and compliant. This includes:

• Labour and contractor hours
  
• Materials and consumables (filters, paint, fasteners, etc.)
  
• Equipment use or rental
  
• Service frequency (e.g., monthly vs. seasonal)
  
• Emergency call-out coverage (if applicable)
  

For a commercial or multi-unit residential property, costs may be itemized per task or bundled into a maintenance management contract.

A common method is the 1% Rule:

Set aside 1% of the property’s value per year for maintenance.

For example, if your building is worth $600,000, expect to spend around $6,000 annually on routine upkeep.

However, for commercial or older properties, a more precise estimate uses square footage and building systems complexity. In Canada, typical annual maintenance costs range from:

• $1.50 – $2.50 per square foot for commercial/retail
  
• $800 – $1,500 per unit for residential rental properties
  
• Higher for vacation or hospitality rentals with guest turnover

For accurate planning:

Adjust based on age, condition, location, and tenant turnover rate.

The standard formula for home maintenance is:

Annual Budget = Property Value × 1%

For example:
$500,000 property × 1% = $5,000/year in expected maintenance

This doesn’t include capital improvements or emergency repairs — only regular upkeep.

The maintenance rate is usually expressed as a:

• Flat monthly fee (e.g., $300/month for general upkeep)
  
• Per-square-foot rate (e.g., $2.00/sq. ft. annually)
  
• Percentage of rent (common in leasehold or co-op models)
  

To calculate it:

Total Estimated Maintenance Cost ÷ Property Area or Rental Income

This makes it easier to benchmark costs against other properties or industry norms.

Maintenance charges are based on:

• Frequency and scope of services.
  
• Number of service visits per month
  
• Inclusion of emergency service coverage
  
• Material and labor markup
  

Travel or access complexity

To calculate maintenance, create a list of:

1. Routine tasks (e.g., lawn care, inspections, HVAC filter replacement)
   
2. Service frequency (weekly, monthly, seasonal)
   
3. Labour & materials costs
   
4. Annual repair trends or historical service data
   
5. Add a contingency buffer (10–20%) for unexpected issues
   

Then divide the annual total into monthly installments for budgeting purposes.

Generally, no. Maintenance fees cover essential property services that ensure safety, compliance, and functionality.

However, you can sometimes reduce fees by:

• Opting out of optional services (e.g., landscaping)
  
• Negotiating shared service agreements
  
• Choosing a la carte maintenance services instead of full packages
  

For rental units, maintenance is a landlord’s obligation under Ontario’s Residential Tenancies Act and cannot be legally waived.

• Landlords: Typically responsible for all structural, exterior, and major system maintenance
  
• Tenants: May cover minor upkeep (e.g., changing light bulbs) or pay CAM charges in commercial leases
  
• Condo Owners: Pay maintenance fees monthly as part of ownership obligations
  

Clarity should be provided in leases, ownership documents, or service agreements.