Interim Occupancy Fees are made up of three components.
1. Interest calculated on a monthly basis on the unpaid balance of the purchase price.
2. The monthly maintenance fee contributed for the unit; and
3. A factor of the Property Tax (which will be adjusted if necessary once actual taxes are determined).
Depending on the height of the building and where a unit fits in it, Interim Occupancy can last anywhere from a couple weeks to more than six months. Someone owning a unit on the 6th floor of a 50 storey building will be in the Interim Occupancy Period for longer than someone on the 46th floor.
Typically the level premium when buying pre-construction is $1,000 per floor. In almost all cases the Occupancy Fee will exceed $1,000 per month. A good rule of thumb is that it takes about a week for each floor in a building to be finished construction and ready for move-in. In some instances it can make sense to purchase higher floors in a building in part to limit your exposure to Occupancy Fees.
Pro Tip: Ask for a clause in your Agreement of Purchase and Sale that assigns you the right to rent your unit during Interim Occupancy Period, as opposed to renting it on Final Closing.