With new laws taking effect in 2025, there has been an uptick in condominium fees in Florida. A “structural integrity reserve study” was due for most condos by New Year’s Eve and intended to keep buildings safer following the Surfside condominium collapse in 2021. While the rules are well-intentioned, they have naturally led to higher assessment fees. That, combined with rising insurance costs and money lost to hurricane damage, is making many Florida home buyers wary about purchasing a condo unit.
In today’s blog post, let’s take a closer look at the recent increase in condominium fees for Florida residents.
To start, the higher fees are not for all condominiums. They only apply to buildings that are three stories and higher or older than 30 years. This distinction is an important one, as many Florida condominium buildings are only one or two stories.
It’s also crucial to note that the increase in fees is not because the condominium management companies are struggling. In fact, a majority of condominiums are well-managed and already have a reserve fund in place for future expenses like exterior painting, road maintenance, and community pool maintenance. In this sense, these expenses are similar to those that a single family home owner faces.
The status of the reserve fund is particularly critical, as it helps ensure that the community is financeable to potential buyers. If the condo is not managed properly and does not have enough money in reserve, it presents as a red flag for mortgage lenders. In turn, the lenders will not finance the units for buyers, meaning a purchase is only possible for cash buyers.
Unlike homeowners associations (HOA), condominium communities have to report their financials to the state of Florida. This requirement occurred after the banking recession in the 2000s. In this sense, then, condominium owners are already being held accountable for their financial choices and reserve funds.
Finally, some owners are hoping that lawmakers can change these increased fees during the legislative session in March. However, failure to comply with the new laws may lead to denied loans or higher insurance costs since mortgage lenders and insurance companies will want to see proof of the building’s safety codes and financial status.
This increase in condominium fees shouldn’t exclude you from looking at condo units as your future home.
Rather, you should understand the reasoning behind the new laws — and what’s why it’s important to choose the right realtor! The team at the Urban Dog Group is well-versed in condo ownership — for primary owner occupancy and investment properties — and ensures that our buyers are both informed and protected.
Before we close, we wanted to offer a brief update on the housing market in general. Since the start of the year, mortgage rates have remained near seven percent. Future buyers shouldn’t expect a significant decline in upcoming months, with a small drop anticipated in 2026. An increased demand should counter high inventory, ensuring a projected home price growth of four percent through the year.
Let The Urban Dog Group help you with your real estate needs. Contact Christine Elias at caerealestate@gmail.com.
Comments