When shopping for a condominium home, consider the following potential financial risks as a condo ages. Every condo has a board whose job is to manage the physical and financial health of the condo, a massive undertaking. 

1. Services and Functions in a Mechanical Room

The mechanical room houses the centralized systems that keep the building habitable. It is the “heart and lungs” of the building, and understanding when those organs start to fail is key to avoiding a special assessment nightmare.

• HVAC Systems:
• Boilers: Generate hot water for space heating.
• Chillers/Cooling Towers: Provide chilled water for air conditioning.
• Make-Up Air Units (MAU): Replace air exhausted from hallways and units to maintain building pressure.

• Plumbing & Water Management:
• Domestic Water Booster Pumps: Ensure water pressure reaches the top floors.
• Domestic Hot Water Tanks: Storage and heating for showers and sinks.
• Sump Pumps: Remove groundwater or sewage from low-lying areas.

• Electrical Infrastructure:
• Main Distribution Board: Directs high-voltage power to various sectors.
• Transformers: Step down voltage for residential use.
• Emergency Generator: Powers life-safety systems (elevators, fire alarms, emergency lights) during outages.

• Fire Safety:
• Fire Pump: Ensures adequate pressure for the sprinkler system.
• Fire Alarm Control Panel: The “brain” that monitors smoke detectors and pull stations.

2. Infrastructure Risks & Financial Lifespans

Financial risks manifest when the Reserve Fund isn’t prepared for “End of Life” (EOL) replacements.

Asset Type	Risk Manifestation (Years)	Financial Impact
Roofing (Membrane/Green)	15–20 Years	High: Leaks cause interior damage and mold.
Sealants & Caulking	10–15 Years	Moderate: Water infiltration through the envelope.
HVAC Boilers/Chillers	20–25 Years	Very High: Total system failure requires massive capital.
Elevator Modernization	25–30 Years	High: Obsolescence of parts leads to long downtimes.
Plumbing Risers (Piping)	30–50 Years	Extreme: Systemic leaks; often the most expensive repair.
Parking Garage (Membrane)	15–20 Years	High: Saltwater or water erodes rebar, causing structural decay.
Windows/Curtain Wall	30–40 Years	High: Seal failure leads to energy loss and drafts.

3. Telecom & Satellite Leases: Pros and Cons

Leasing space to firms like Bell, Rogers, or SiriusXM can be a lucrative “found money” stream, but it comes with strings attached.

Pros

• Revenue Generation: Monthly lease payments can offset common element fees or bolster the reserve fund.
• Long-term Stability: Telecom contracts are often 10–20 years long.

Cons

• Roof Integrity: Installation and technician foot traffic can void roof warranties or cause leaks if not supervised.
• Structural Load: Computing rooms (servers, batteries, cooling) are extremely heavy. The floor may need reinforcement.
• Electricity Costs: These rooms consume a large amount of electricity. If not sub-metered, the condo ends up subsidizing the firm’s utility bill.
• Aesthetics & Resale: Some buyers are wary of “cell towers” due to perceived health concerns (RF radiation), even if they meet safety standards, which can impact property values.
• Access Issues: You are granting 24/7 access to third-party technicians, which creates a security burden for the front desk or concierge.

Pro-Tip: If you proceed with a Telecom lease, ensure the contract includes a “Make-Good” clause requiring the firm to restore the roof and interior space to their original condition upon lease termination.