How is the management fee for a condominium generally calculated?

The management fee for a condominium is typically calculated on a pro-rated basis according to each owner's interest in the property. This method ensures that each unit owner pays a share of the management costs proportional to their ownership stake in the condominium. For instance, if an owner holds a larger percentage of the total condominium ownership, they would contribute a larger portion of the management fee, reflecting their greater interest and responsibility for the overall costs associated with managing the property.

This approach is equitable because it aligns financial responsibility with ownership rights, as each unit might have a different size, value, or number of amenities. While the management fee could theoretically be based on the size of the units, this is not the standard practice; instead, it is more common for the fee to be determined by the overall ownership interest. This helps to prevent discrepancies where larger units might unduly burden owners of smaller units or vice versa.

Determining fees based on the overall property value or equally among all occupants would not accurately reflect individual ownership stakes, which is why these methods are less common. Thus, calculating the management fee pro-rated according to interest ensures fairness and reflects each owner’s share in the condominium.