Should I Buy a Condo Townhouse as a Rental Property?
- Wayne Hillier
- Oct 6
- 3 min read
Updated: Nov 1
By Wayne Hillier, Real Estate Investing Masters
October 6, 2025 | Edmonton, Alberta
When new investors start analyzing rental properties, the topic of condo townhouses always brings hesitation.
The same concerns come up every time:
“What if there’s a special assessment?”
“Aren’t condo fees just wasted money?”
“I’d rather own the whole property myself.”
And honestly... I get it. Nobody wants a surprise bill from the condo board for tens of thousands of dollars. But here’s the truth: condo townhouses aren’t as risky as most investors think.
In fact, they can be some of the safest and easiest properties to own, if you know what you’re doing.
What You’re Really Buying with a Condo Townhouse
When you buy a condo townhouse, you’re not just buying the unit, you’re also buying into a shared corporation that owns and maintains everything outside your four walls.
Roofs, siding, fences, parking lots, and landscaping; those all belong to the condominium corporation.
Your monthly condo fees go into a reserve fund that pays for the repair and replacement of those items over time.
So when you hear people say condo fees are “a waste of money,” that’s simply not true. It’s the same as setting aside money each month for future maintenance, the only difference is, it’s organized for you.
Why Special Assessments Scare Investors
A special assessment is when the condo board needs extra money for a big repair that wasn’t planned for, like a sewer line collapse or a foundation issue that wasn’t visible during inspections.
It’s the real estate version of an “oh crap” moment.
But here’s the key: a well-managed condo corporation should rarely, if ever, need one.
The only time these assessments come up is when there’s mismanagement, or when something completely unpredictable happens that no one could have reasonably planned for (think carpenter ants behind siding, or underground sewer failures).
If the condo is being run properly, these situations are extremely rare.
How to Protect Yourself as an Investor
Every condo association in Alberta is required to maintain detailed documentation, including:
Reserve Fund Study – outlines the lifespan of major components (roofs, siding, fences, etc.) and how much money should be set aside for future replacements.
Financial Statements – show the current balance of the reserve fund and ongoing expenses.
Meeting Minutes – reveal how the board is handling maintenance, budgeting, and upcoming projects.
When you know how to read these documents, you can quickly see whether a condo corporation is being managed well or run into the ground.
If the reserve fund is healthy, the study is up to date, and the board is planning ahead, you’re likely in good hands.
But if you see delayed maintenance, outdated reports, or a board ignoring professional recommendations, that’s when you walk away.
The Bigger Picture: Risk vs. Mismanagement
When you hear horror stories about $40,000 special assessments, that’s not bad luck, that’s bad management.
A properly run condo board should never be blindsided by a roof replacement or siding project. Those are predictable, long-term expenses that any decent reserve fund should already be planning for.
So the real risk isn’t the condo structure itself; it’s buying into a corporation you don’t understand.
That’s why education matters so much.
If you learn how to read condo documents, interpret reserve fund studies, and assess financial health, you’ll see what I see: condo townhouses can actually be one of the most predictable investments out there.
Wayne's Final Thoughts
I own many condo townhouses, and I sleep just fine at night.
Why? Because I’ve done the work. I understand my risks, I know how my condo boards operate, and I keep a healthy personal reserve fund to cover anything that’s truly outside my control.
Don’t let fear or online horror stories stop you from considering condos.
The investors who win aren’t the ones who avoid risk, they’re the ones who understand it, prepare for it, and manage it like a business.
If you know what you’re doing, condos and special assessments aren’t scary at all, they’re just another part of running a smart, secure real estate portfolio.
Listen to Today’s Episode:
Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier
About the Author
Wayne Hillier is one of Canada’s trusted experts in real estate investing education, specializing in Alberta’s thriving markets. Based in Edmonton, Wayne has over a decade of experience building a high-performing rental portfolio and coaching investors to achieve strong cash flow, sustainable wealth, and creative financing success. As co-founder of Real Estate Investing Masters, Wayne is a respected real estate investing coach and mentor, dedicated to helping Canadian investors confidently scale their portfolios. He is also the host of The Real Estate Investing Morning Show, Canada’s #1 daily podcast.
Comments