When buying a home in Florida, especially in an HOA or condo
community, doing your homework is key.
If you're looking to buy in Kendall or the surrounding
neighborhoods, you'll want to dig into all the details of the
association—whether it's an HOA or a condo association—before making an offer.
A little extra effort upfront can help avoid some serious headaches down the
road!
Why Do Your Homework on an HOA or Condo Association?
Homeowners' Associations (HOAs) and condo associations are
common in Florida, and while they serve similar functions, they govern
different types of properties.
An HOA typically manages a community of single-family homes
or townhomes, overseeing common areas like parks and clubhouses, and enforcing
community rules.
A condo association, on the other hand, manages a
condominium building or complex and is responsible for common areas like
hallways, roofs, and shared amenities.
Both types of associations can offer benefits, such as
maintaining the community's appearance and providing amenities, but they also
come with rules and fees that can impact your lifestyle and budget. This is why
it’s so important to review everything before making an offer.
Governing Documents: The Community Rulebook
Start by checking out the association’s governing
documents—these usually include the Declaration of Covenants, Conditions, and
Restrictions (CC&Rs), Bylaws, and Rules and Regulations.
These documents
outline what’s allowed and what isn’t, from exterior paint colors to pet rules.
If you’ve got a specific lifestyle in mind, understanding these guidelines will
help you determine if a community is right for you.
For instance, in some Kendall communities, there could be
specific rules on things like landscaping or renting out your property. This
brings up a big point: some associations restrict rentals altogether, or they
might have rules where you can't rent out your property until you've owned it
for a certain period, like one or two years.
Knowing these rules in advance can prevent a big surprise,
especially if you were thinking about renting out the property down the line.
Meeting Minutes: The Inside Scoop
Next, take a look at the meeting minutes from recent
association meetings. These notes provide valuable insight into the
association's operations and any potential red flags. They can reveal ongoing
issues, like debates over increasing fees or enforcing specific rules. If
there’s a lot of drama or unresolved disputes, you might think twice about
buying there!
The Budget: Financial Health Check
A key part of your due diligence is checking the
association’s budget and financial health. For condominium associations,
Florida law requires associations to maintain reserves for major repairs and
replacements, like roof and pavement work, unless waived by a majority vote of
the owners.
With recent changes in the law, many condo associations are
now required to have fully funded reserves for structural integrity starting in
2025, meaning those fees are less likely to be waived. For HOAs, while reserves
aren't mandatory by state law, they must follow similar budgeting rules if they
do establish reserves.
This means it’s crucial to understand if the community has
enough reserves to cover major repairs or emergencies. Without sufficient
reserves, homeowners could face unexpected special assessments to cover these
costs.
Also, remember that an association’s monthly fees aren’t
fixed; they can fluctuate over the years, much like the cost of goods and
services. Knowing the financial stability of the HOA or condo association will
help you avoid surprises.
Why It Matters to
Have a Buyer Agents
A good buyer’s agent will help you navigate all these
details, digging into the association documents, asking the right questions,
and providing solid advice.
They should know the ins and outs of local HOAs and condo
associations, especially in Kendall, and guide you away from communities that
might not suit your needs. As your Accredited Buyer’s Representative (ABR), I
always make sure my clients understand the full picture, including potential
rental restrictions and the association’s financial health.
Bottom Line
Before submitting an offer on a property in an HOA or condo
community, make sure you and your agent have carefully reviewed the governing
documents, meeting minutes, and budget.
This due diligence will help you avoid any unexpected
surprises and ensure that the community aligns with your plans.
If you’re looking to buy in Kendall or the surrounding
neighborhoods and want to make sure you’re fully informed, feel free to reach
out. I’m here to help guide you through the process and find a home—and an
association—that’s just right for you!