Rental Fees, Guest Suites & Party Room Fees

When a condo corporation owns lockers for rental or additional parking spaces, these rental fees are usually determined by the size of the locker and the type of parking space. Managers can determine fees in conjunction with their boards. These are not the same as common element fees: they are rental fees. A contract is signed between residents and the corporation. Owners or tenants pay by cheque or pre-authorized payment.

When residents default on rental fees, no lien can be applied but managers may try to recoup the lost rental fees from deposits or, when tenants are involved, from owners.

Such rental fees are more difficult to recover. Therefore, residents whose payments are late should be immediately warned and, if they do not comply, refused access to the locker or parking spot before the next month begins. Proper contract wording is essential in this respect as is a manager’s vigilance.

The same procedure should take place when residents rent a locker or a parking space from other residents.

Rental fees are generally paid, along with a refundable security deposit (in the event that damage occurs), when guest suites and party rooms are reserved. Forms describe the obligations and rights of residents who use these facilities. 

Rental fees may be included in the declaration. Or, yet, a by-law may be passed in this respect. Fees have to be reasonable. Many condos have rental fees for guest suites or for bowling lanes. Party room fees as well as fees for the theatre or viewing room may or may not apply. They are often levied for parties but not, for instance, when the room is used for individuals who want to study or when residents have social gatherings and meetings among themselves.

The rationale for fees is that the use of these facilities brings additional expenditures to the corporation: When used, these facilities require maintenance and time on the part of staff. Staff has to clean and inspect. The kitchen in the party room has to be scrubbed. Energy is being used. Television and even internet access are paid by the corporation. In addition, guest suites and party rooms are generally used by residents’ visitors.

In contrast, other recreational facilities such as pools are maintained at all times and the water has to be kept warm no matter whether it is used or not.