[Eff-1]

Random thoughts in no particular order about strata fees:

- Insurance premiums skyrocked in 2019 and have been going up ever since, however this year the increases are not as steep, from what I have seen and heard

- This year, it's inflation that is hitting strata budgets hard. A massive amount of budget goes towards paying for trades and contractors: cleaners, building caretakers, garbage removal, fire inspectors, window washers, electricians, HVAC maintenance, landscapers, EVERYONE is jacking up their rates on account on inflation, fuel surcharges, etc etc. Expect 10 - 15% increases across the board. Don't get me started on elevator maintenance companies, they are like the mafia and are VERY expensive and can basically charge whatever they want and you have no negotiation power.

- Snow removal costs took a big jump the past year due to new insurance requirements they were required to get.

- Speaking of snow removal, the local climate has a massive impact on monthly costs. We are lucky here because our climate is mild. But Edmonton, Toronto, even Whistler, they pay a lot just for a/c in the summer and snow removal/heating in the winter. Way more than us, generally.

- For example: Another trade that jumped in cost a lot this past year was pest removal, specifically rat and mouse traps. The gov't made of the pesticides illegal, and so they now require more frequent maintenance because the less toxic stuff isn't as effective. More frequent maintenance means more costs.

- A lot of the newer buildings are coming with very fancy amenities. I've seen touchless automated car washes, bowling lanes, glass bottom pools, etc etc. Even a fancy water feature out front. Sounds great if you're in the market to buy. All of that costs a lot of money to maintain and upkeep. It also means more expensive insurance premiums because of the high reconstruction costs. We have very fancy treadmills the developer installed with digital screens. One of those screens died this year and it was VERY expensive to replace. Stuff like that needs to be budgeted for.

- Developers will often set the initial first year budget quite low. Yes, part of it is because they do it intentionally to draw in buyers. But also it's not really possible to know how much a building costs to run until a year or two later, as there are often a lot of big costs you simply won't know until they surface.

- The biggest thing, however, that impacts your budget is how smart and/or diligent your strata council is. Strata councils are volunteers and there's no minimum requirements to be part of it. You could have a council of 7 idiots with zero financial experience. And believe me when I say a lot of property managers (who are supposed to guide the council) are idiots too. It's the blind leading the blind. Our annual operating budget is seven figures and so far we have been very lucky to have 2 CPAs on our council who are smart and pay very close attention to our budget and bookkeeping. I'm so appreciative to have them. If you're unlucky to have morons on your council, hang on tight because those people can make careless decisions that could have serious financial implications for all owners, either now or in the future. This is the only reason why I joined our council, so that I'd at least know what was going on and not let others make decisions that impact me personally. TBH I hate being on council because it's a lot of time and stress but the idea of someone else running it scares me more.