Condo Living in Daytona Beach Shores - Fees, Assessments and Reserves is the fourth post in the series. Previous posts:
Condo Living in Daytona Beach Shores
Condo Living in Daytona Beach Shores - Condo Versus Home
Condo Living in Daytona Beach Shores - Renting Your Condo
Let us take a quick look at Maintenance (Association) Fees, Assessments and last but not least - the Reserves.
If you read my previous post discussing the cost of owning the vacation condo or a home here in Daytona Beach Shores area you are familiar with basic breakdown. What I would like to do here is dwell a little deeper into the things associated with actual ownership of the Condo in the area.
Maintenance fees cover day to day operations of the condo association. It includes insurance, management and maintenance of the common areas, security... In most of the buildings they also include the water and basic cable for the residents. Maintenance fees are voted on every year and amounts vary depending on the amount of reserves and the cost of insurance and upkeep of the building. Maintenance fees are set based on the budget. It, however, remains constant throughout the year.
Special Assessments is the money needed to do the job, which either was not budgeted at all, or when the amount in the budget is not sufficient to cover the cost. Buildings always need maintenance and that is usually taken care off by preventative and everyday maintenance that is paid for by the maintenance fees. But once in a while there will come a time when additional repairs are needed. Be it a new AC system for common areas, an elevator upgrade, or a decision to replace worn out doors and windows, or a more expensive concrete replacement on the balcony. Assessments are no fun by any means. As a Condo owner you should expect to have those surprise charges once in a while to pay for things that were not planned in the budget.
Reserves are not the cost, this a way of minimizing Special Assessments by having money for the jobs like replacing the roof, replacing elevators, painting the building, etc. They are voted on at the annual meeting. In Daytona Beach Shores like anywhere else in Florida, Associations may choose not to carry any reserves and with that comes a risk for as there are always things that need to be fixed, replaced or installed and there may not be enough money at hand at that time to do the work. If there is not enough money, than the money will have to come from Special Assessment.
When choosing a condo to buy, you may want to look into the things like parking garages, elevators, windows, doors, balconies, roofs, and AC systems to see if the reserves are sufficient. Otherwise you should be prepared for a possibility of the assessments coming up when things need to be fixed or replaced. Some of the assessments are brought by legal actions and the latest example is refurbishing of the elevators in older buildings to comply with requirement for accessibility for the persons with disabilities. Associations do not have a control over laws. Not all Associations are prepared to face such scenarios with sufficient reserves in the bank.
If you are considering buying a condo, do not hesitate to contact me. Let me help you choose the right vacation condo in Daytona Beach Shores. Have a pro in your corner when you are ready.
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