All About Those Scary HOA and Condo Association Fees

HOA and Condo fees can add up and impact your purchase power and ongoing expenses.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Anyone considering a residential purchase in Florida has no doubt received the following sage advice from a friend or relative - 'Watch out for all those fees...' While these words of caution surely have merit, when spoken by persons less than an expert in real estate may do more you harm and impede your progress than help. Fear is not a good thing. Various fees are what they are for good reasons. You should research, learn, and understand the fees to make a good sound buying decision. Learn - Understand - Decide. Ask an expert.

I mentioned HOA and Condo fees. Well, that's just the tip of the iceberg. Ongoing fees are more than that: Master HOA (MHOA) fee, HOA fee, Condo Fee, CDD Fee, MSTU Fee, recreation amenity and club fees, land lease fees, to name the most common fees one will run across.

And then there are the one-time fees. Application fee, transfer fee, capital contribution fee, initiation fee, foundation fee, special assessment fee...

Have I got your attention yet? You do get something for the fees...

To read more detail about fees read Association Fees and Types of Fees

At the risk of oversimplifying the matter, if you live in a gated community with an average set of amenities and services you can expect to pay $250-$400 per month for a single-family home and $300-$450 per month for a condominium excluding mid and high-rise buildings. Yes, condo fees are almost always higher than single-family home fees. This is due largely to three items: insurance, common areas, and deferred maintenance.