Important Information To Know About Buying In South Florida Condos
Within the search for the perfect property, it is important to understand that each condominium has its own association (management office) and building rules that the association and residents abide by. This information is extremely important as each building has its own association approval process, Home Owner’s Association Fees (HOA) and fee’s for buyer applications. Below is a general overview of some things that can be expected when buying in South Florida Condos.
Home Owner Association Fees
HOA fees are a financial commitment that homeowners in condominiums or planned communities contribute to cover shared expenses to maintain communal amenities and building expenses such as insurance and certain utilities. These fees are typically paid monthly and are essential to the upkeep of common areas such as landscaping, pools, gyms, and other shared facilities. Additionally, HOA fees encompass exterior maintenance, building insurance, certain utilities, and even funds that are placed to the building reserves. The purpose of these fees is to ensure the overall well-being and aesthetic appeal of the community, fostering a cohesive and attractive living environment for all residents. While the prospect of HOA fees might seem like an additional financial responsibility, they play a crucial role in preserving property values, promoting a sense of community, and alleviating the burden of individual maintenance for homeowners. It's important for potential buyers to carefully review the HOA guidelines and fee structure before purchasing a property in an HOA-managed community to understand the benefits and obligations that come with it. HOA fees vary from condo to condo based on the facilities that the building provides to its residents, number of properties within the community and other factors. HOA fees are also broken down based on property square footage or bedroom size, for example a 1 bedroom property owner may pay $650 per month in HOA fees to where as a 2 bedroom property owner may pay $900.
Association Application Fees
Application fees can range from $100-$250 per person or per married couple.
Only adults (18+) will need to apply.
This fee will cover a credit score overview, background check, and eviction history search.
Some associations require a minimum credit score.
Association Approval
Most associations take anywhere from 14 to 30 days to review applications for approval. There are associations that can provide approval within a shorter time frame (a few days to one week).
Upon approval, the association will provide an approval letter and once this letter is received you are cleared for move-in.
Some associations may request an in-person or Zoom interview to review building rules and regulations for new residents and provide you with an approval letter only after the interview.
Common Area Security Deposit
A common area security deposit is required by most condos in South Florida. Buyers may need to submit a common area security deposit within the application process to the condo’s association which will be held until they sell or rent the property. This type of deposit usually ranges from condo to condo, based on the amenities that the building provides and common areas.
What is a Common Area Security Deposit?
It serves as a protection mechanism to cover any potential damage or misuse of the common areas within the condominium complex. Common areas typically include spaces such as lobbies, hallways, elevators, parking areas, swimming pools, gyms, and shared amenities. The purpose of this deposit is to ensure that all residents collectively bear the responsibility for maintaining and preserving the common areas in good condition. If any resident causes damage to these shared spaces or fails to follow the established rules and regulations, the cost of repair or restoration can be deducted from their security deposit. By collecting common area security deposits, condos aim to promote responsible usage of the shared facilities, discourage negligence or intentional damage, and ensure that the overall value and quality of the complex are maintained.
Elevator Security Deposit
Refundable & non-refundable fee for elevators.
Example: $150 nonrefundable fee for elevator reservation plus a $300 refundable fee (if nothing is damaged during move-in / move-out in the elevator).
Flat fee for elevator reservation
Flat fees range from condo to condo.
No fee for elevator reservation
A small percentage of condos have no elevator reservation fees.
Key Fob / Key Cards
If the building & elevator access requires to have a key card or key fob an additional fee may be charged for new residents to receive a new fob/card.
This fee can range typically anywhere from $25-$100 per person.
Additional Parking
Most one and two bedroom properties are only provided one parking space per unit. Additional parking can be obtained by paying a monthly fee.
The second parking space may either be rented out from the condo association or if the building has a valet service, from the valet. Monthly fees vary from condo to condo.
Pet Fees
If you have a pet, you may be required to pay a pet fee to the condo.
The fee can range from $50-$250 per pet
This fee is usually non-refundable
Required to register your pet within the building & in some cases, if you have a dog, condos will require you to submit a stool sample to make sure everyone is picking up after their pets.
Weight restriction for pets can range from 15-35 lbs.
Most condos will allow only one or two pets per unit.
Service Animals & Emotional Support Animals
If you have a service animal or registered emotional support animal associations are not allowed to charge you any additional fees or deny the breed or weight of the animal.
However, if your animal is a dog, associations may request you to submit a stool sample & pay for the processing fee.
Why is a stool sample needed?
It's beneficial as this will decrease the waste around or within the property left by irresponsible pet owners. If someone were to leave the stool outdoors the association can run the stool for DNA and fine the pet owner. The stool sample applied to pets, service animals and emotional support animals if the condo association rules and regulations call for one.
Of course, this is a brief overview of some of the basic fees you can expect when purchasing in a Condominium in South Florida.
There is more information to be shared in regard to Condominium assessments, financial records of buildings, building reserves and so much more!
Schedule a consultation with me if you would like to learn more about purchasing a property in a condominium in South Florida.
