Real Estate Council of Alberta Fundamentals Practice Exam

The main source of income for a condominium is the collection of monthly fees from unit owners. These fees, often referred to as condo or maintenance fees, are collected to cover the costs associated with the property's operations, maintenance, and management. This includes expenses such as landscaping, cleaning, insurance, utilities, and contributions to the reserve fund for future repairs or improvements.

While the sale of units can generate income for the developer or seller of the condominium, it is not a recurring source of income for the condominium association itself once the units are sold. Rental income can be a source of revenue for individual unit owners who choose to rent out their units, but this is not an income stream for the condo association. Property appreciation refers to the increase in value of the property over time, but it does not directly contribute to income in the way that monthly fees do. Thus, the monthly fees are critical for the ongoing financial health and sustainability of the condominium community.