What Do I Need to Know Before Buying a Condo in Florida?

1. HOA Fees: What You Pay and What You Get

Condo association fees (often called HOA fees, though technically it is a condo association, not a homeowners association) cover the cost of maintaining the building and common areas. In Florida, these fees typically include:

• Building insurance (the master policy covering the structure and common areas)
• Water, sewer, and trash removal
• Common area maintenance (hallways, lobby, elevators, pool, gym, landscaping)
• Reserve fund contributions for future capital repairs
• Security, concierge, and management fees (in full-service buildings)
• Cable and internet (in some buildings)

Fees vary widely. An older walk-up building without amenities might charge $300 to $500 per month. A full-service high-rise on the beach with a pool, gym, doorman, and valet parking can run $1,000 to $2,500 or more. The key is understanding what is included and whether the fee is adequate to maintain the building properly. A low fee is not always a bargain if it means the building is underfunding reserves or deferring maintenance.

2. Special Assessments: The Hidden Risk

A special assessment is a one-time fee charged to unit owners when the association does not have enough reserve funds to cover major repairs. In the wake of the Surfside Champlain Towers collapse in 2021, Florida passed new legislation (SB 4-D and HB 1021) requiring:

• Milestone structural inspections for condos 30+ years old (or 25+ years if within 3 miles of the coast)
• Reserve studies for buildings 30+ years old
• Adequate reserve funding for major structural components

The result has been a wave of special assessments across Florida as older buildings address deferred maintenance, repair structural issues, and fund proper reserves. Assessments can range from a few thousand dollars to $100,000+ per unit for major structural repairs. Before buying a condo, always review:

• The most recent reserve study
• The association's financial statements
• Meeting minutes from the past 12 months (for any discussion of repairs or assessments)
• The status of the milestone inspection (if applicable)

3. Insurance: A Critical Cost to Factor

In a condo, the association's master policy covers the building structure, common areas, and typically "walls-in" coverage (bare walls, floors, ceilings). You will need an HO-6 policy (condo insurance) to cover your personal belongings, interior improvements (cabinets, countertops, flooring), and liability. Many HO-6 policies also provide loss assessment coverage, which protects you if a special assessment is related to an insured loss.

As with single-family homes, condo insurance costs in Florida are high due to hurricane risk. Budget $1,000 to $3,000 annually for your HO-6 policy, depending on the building's location and your coverage needs. And critically, review the association's master policy to make sure it is adequate. An underinsured building can lead to special assessments.

4. Rental Restrictions: Know Before You Buy

If you plan to rent out your condo, either as an investment or occasionally when you are not using it, the association's rental policies are critical. Florida condo associations can impose a wide range of restrictions:

• Minimum lease terms: Many buildings require leases of 30 days, 6 months, or even 1 year. Short-term rentals (Airbnb, VRBO) are prohibited in many associations.
• Rental caps: Some associations limit the percentage of units that can be rented at any time, often 20% to 30%.
• Waiting lists: In high-demand buildings, there may be a waiting list to rent your unit.
• Board approval: Some associations require board approval for tenants, including background checks and credit requirements.
• Lease fees: Associations may charge application and administrative fees for each lease.

If you are buying as a primary residence with no plans to rent, these restrictions matter less. But if investment flexibility is important to you, review the condo documents carefully before making an offer.

5. Building Age and Condition

Florida's condo market has a wide range of building vintages, from 1960s low-rises to brand-new luxury towers. Each has trade-offs:

• New construction (2010+): Modern building codes, impact windows, energy efficiency, no deferred maintenance. But higher purchase prices and sometimes higher HOA fees for new amenities.
• Mid-century (1970s-1990s): More space per dollar, often larger floor plans. But may need updates and face insurance challenges. Check for recent structural inspections.
• Older buildings (pre-1970s): Lowest entry prices, often in great locations. But highest risk of special assessments, insurance challenges, and potential structural issues. The new milestone inspection laws are particularly relevant here.

I always advise buyers to order a condo document review (typically $200 to $400) before making an offer. This professional review examines the association's financial health, reserve adequacy, pending litigation, and compliance with Florida's new safety laws. It is one of the best investments you can make as a condo buyer.

6. Reserve Funds: The Building's Financial Health

The reserve fund is the association's savings account for future capital repairs: new roofs, elevator replacements, pool renovations, painting, and structural repairs. A well-funded reserve means fewer special assessments and predictable HOA fees. An underfunded reserve means you could face large, unexpected bills.

Florida's new laws require reserve studies for buildings 30+ years old, but not all associations are fully compliant. When reviewing a condo, look for:

• A reserve study completed within the past 3 years
• A funding plan that shows the association is putting away enough each month to cover future needs
• The percent funded: 70% or higher is healthy; below 50% is a red flag
• Any large deferred capital projects on the horizon (roof replacement, elevator modernization, concrete restoration)

7. Financing and FHA Approval

Not all condos are easy to finance. Conventional loans (Fannie Mae and Freddie Mac) have strict requirements, including owner-occupancy ratios, delinquent HOA fee thresholds, and reserve fund adequacy. FHA loans have their own approved condo list, and many Florida condos are not FHA-approved. VA loans have similar restrictions.

Before making an offer, check whether the building is warrantable (meaning it meets Fannie Mae/Freddie Mac guidelines). If it is not, you may be limited to cash or portfolio loans, which carry higher interest rates. For more on financing, see my financing guide. And for a full picture of all the costs involved in buying, use my closing cost estimator.

My Advice as a South Florida Realtor

Condos can be an excellent choice in South Florida, especially for buyers who want a lower-maintenance lifestyle, access to amenities, or a more affordable entry point into desirable coastal areas. But the due diligence required is more extensive than for a single-family home. You are not just buying a unit, you are buying into a shared financial and legal structure.

I help every condo buyer I work with navigate these considerations. We review the documents together, I connect them with condo document review professionals, and I make sure they understand exactly what they are committing to before they sign. Let's talk about what you are looking for and find the right condo for you.

For additional resources, visit SouthFloridaBuyerGuide.com and RyanParkerHomeGuide.com for comprehensive guides on financing, closing costs, and everything else you need to know.