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Condo Living Frequently Asked Questions

Condominium living offers many benefits that are appealing to increasing numbers of individuals and families. Despite the fact that condominium life offers the maintenance and worry-free, luxurious lifestyle, it may not be for everyone. With the recent boom in condominium construction and condominium conversions in Florida, prospective residents need to do some homework, to help educate and orientate themselves before taking the plunge.

What is a condominium?

It is a form of property ownership. A condominium owner owns a unit exclusively, which includes the airspace in their unit up to the paint on the walls-but not including the walls. The remaining property is considered common area and held jointly by all owners of the condominium. A unit owner becomes a member of a condominium association at the time he/she purchases the unit. Chapter 718 Florida State Statutes, the article of incorporation, the bylaws, and the covenants play an important role in how an association is governed and required to operate. In 2006, there were an estimated 286,000 association-governed communities in the United States. Condominium communities constituted approximately 38 to 42 percent.

Why do people buy condominiums?

Condominium ownership is a concept that has existed in Florida since 1963. There are many reasons why people buy condominiums as their primary or secondary homes.

  • Absentee home ownership- vacation and second home
  • To free up personal time normally dedicated to home maintenance
  • As an investment
  • Choosing the "condo lifestyle" over traditional home ownership to include but not limited to valet, concierge services, 24-hour security, restaurants, social activities, tennis, pool, spa, and beach services.
  • To live in a safe and secure environment

There is often a high concentration of condominiums in downtown locations where land is a premium. If you want to be in the heart of the city, a condominium may be a good choice. Whatever your reason, condominium living can be a great way of life and many actually be preferred over a single-family home once you know the facts. The benefits and drawbacks need to be weighed against your own criteria. Check out the amenities. The more you know in advance, the more likely you'll enjoy your own community.

Are you comfortable with living in such close proximity with your neighbors where only walls separate your living space? Are you willing to sacrifice storage space? Would you be happy with using am elevator to retrieve your mail and to transport items to and from you car? Are you willing to live with the decisions that the board of directors make for you? Would you mind the smell of others cooking? What is one person's comfort zone may be another person's war zone. Take the time to talk to people who live in the community.

What are the maintenance fees?

Condominiums are based on the premises of "commonly held" property and "air rights". In addition to the air rights that each homeowner has, they also own a share of the common areas such as the building structure, parking lots, pool, planters, tennis courts, etc. So, maintenance costs are spread out among all of the owners in the form of a "maintenance fee". These items are generally covered as customary operating expenses:

Landscape and common area equipment and maintenance, such as utilities, trash chute maintenance, trash removal, accounting and legal fees, pest control, etc.

  • Property management fees and staff salaries (valet, concierge, security, housekeeping, etc.)
  • Insurance (covering the structure only- not personal property in the units)
  • Pool, fitness center, amenities, and cable television
  • Security systems, life safety systems, elevators, HVAC, plumbing, and electrical

Maintenance fees generally correspond to the size of the condominium unit and are based in the square feet. Therefore, larger units (or units with additional features such as a separately owned private dock or cabana, and additional storage units, wine cellar space, etc.) will pay a larger share of the maintenance. If managed properly, these fees increase at a rate to match the inflation and stay within acceptable levels throughout the useful life of the property. Take a close look at the budget.

Find out all you can about the association’s finances. Beyond reviewing the budget, talk to the association treasurer and find out if maintenance fees are expected to increase and if any special assessments are being planned. When you are purchasing a condominium, ask if any inspections have revealed problems with roofs, plumbing, elevators, or foundations that may cause and increase or special assessment later on. What about the reserves? Do they exist and are the adequate? Review the finances to see if the association has and is setting aside funds for future capital improvement products.

In new construction and conservations, the developer sets the fees. As a buyer occupy the building, the owners take control from the developers, eventually forming a board and setting their own fees. Fees have a tendency to be lower in newly constructed or converted buildings as a developer focuses in maintaining low maintenance fees. This may have an impact on the level of future services and fees.

What are special assessments?

When the maintenance fees collected are not enough to cover current( and projected) expenses, the association may request that a "special assessment" or additional funds be collected to cover these costs. Special assessments are generally seen in buildings requiring significant structure repair or updating. Special assessments may also be levied when residents agree to improve existing facilities or provide additional services to residents. If an association is lacking reserves for larger-ticket items or hasn’t kept up with the maintenance, it could mean a huge increase in fees or a one-time special assessment.

What are the possible drawbacks to condominium living?

Many condominiums have restrictions and/or weight limitations against certain types of pets. You should verify the association rules regarding animals before you buy. Many condominium owners have been faced with the challenges of a barking dog or oversized dog. Condominium rules usually outline the requirement of cleaning up after your pet and many designate a dog walking area.

If you like to play your stereo at three in the morning or host late night parties, condominium life may not be right for you. Condominium owners that drag their chairs across hardwood floor, tile, and marble floors, or vacuum at odd hours, may not be welcomed by neighbors. Underlayment soundproofing installation is required prior to any hard flooring installation. Check out the association rules regarding noise control-specifically what is known as "the right to quiet enjoyment." If you want to make any renovations or any material alterations to your unit, you may be required to obtain approval from the associations Board of Directors. If you decide to consider renting your unit, this may also require approval.

Parking is generally a hot topic at association meetings. When developers design condominium communities they generally plan for the minimum number of spaces-leaving more property for additional units. Many residents own more than one vehicle. Condominium units that were originally designed for the retired elderly couples are now housing families of four and up. When you purchase a condominium, it is important to review parking rules and verify what assigned spaces are conveyed with your unit. Inquire if there are any additional spaces for rent or sale. Check the restrictions regarding pickup truck, commercial vehicles, RV’s, trailers and boats.

Rules, Rules and more Rules…Do I need to comply?

Are you someone who can live by rules? Due to the high density nature and close proximity of condominium units, owners agree to abide by the covenants, conditions and restrictions… the condominium documents and state statutes. Review all details that relate to the rules that may be important to you, such as:

  • pets
  • parking
  • rental restriction
  • home business
  • recreational vehicles
  • vehicle maintenance including washing and storage, etc.

Find out if you can live by those restrictions. For example, if the rules prohibit parking of commercial vehicles, and if you are a large Family with two vehicles and only two parking spaces are allocated, this may not be the place for you. These rules govern the way in which the common property can be used and regulate the implementation of any new rules.

Don’t purchase that condominium thinking you can get away with violating the rules or even changing the rules later because you may find yourself in turmoil with your neighbors and board of directors. Get a copy of the community association’s governing documents and ream them carefully. No matter how long these might take to read through, you will need to get a clear understanding of the rules. If the legal wording gets to confusing, hire a lawyer to review the documents with you. The investment now could save you time, money, and headaches later.

What insurance will I need?

The association is responsible to insure the common elements and certain parts of the unit defined in Florida Statutes Chapter 718.111 section 11. The owner is responsible to insure all components inside the unit. If you own a condominium or townhouse, there are two things to remember when it comes to insurance. The association has a master insurance policy that covers the outside of the buildings structure, including the roof and common areas such as pools and sidewalks. The master policy does not insure the inside of your unit or any of your personal belongings. Condominium owners need to obtain insurance to cover additions, alterations, wall fixtures, floor and ceiling of the unit, personal belongings, and personal liability.

Why do condominiums hire proffessional management?

A professional management company has the ability to supply sufficient number of professionally trained staff to provide the highest standards and preserve the quality living environment for the association. A professional manager will provide cost-saving policies and procedures, outstanding communications, and the ability to work effectively with the board of directors, membership, staff members, and vendors. Necessary maintenance repairs and replacements are performed correctly when needed. The manager is educated in making sure that the association’s property is kept in compliance with the laws and association documents that govern the community. The professional manager oversees the finances and is responsible for the annual budgets and long term reserves for capital improvements for the board of directors’ review and adoption. More about changing management.

The trend towards larger condominiums.

In the late 1980’s, many residents in South Florida moved out of Miami and Ft. Lauderdale for the western suburbs (Miramar, Weston, and Pembroke Pines) only to be face with agonizing commute times, school overcrowding, and limited social activities. Many homeowners have rediscovered the joys of condominium living such as shorter commute times, better locations, and minimal household maintenance. A migration back to the urban areas has occurred-and with this migration has come a boom of condominium housing geared toward larger families. This new generation of condominiums range from 2,000 to 6,000+ square feet.

The amenities and services are very much like living in a hotel. Many luxury condominiums offer fitness trainers, classes, beach, and poolside towel service, extensive recreational facilities, health spas, salons, restaurants, valet , 24/7 security, front desk and concierge services, and 24 hour on call staff. Of course maintenance fees are higher for these types of properties, but many families who race against the clock all say they like coming home to these luxuries.

With that in mind, the appearance of a development can steadily decline if the board members do not discuss and establish uniform standards for everyone. Before you sign on the dotted line and make one of the biggest financial investments of you life, find out everything you can about the association if you are buying into a development governed by one. Inquire about how the board of directors conducts themselves, and what the association’s financial, political, and legal activities functions are. These items are very important to your investment and quality of life.

If you comply with the governing documents, the association shout not intrude on your privacy and quality of life. In fact, there are many advantages to enjoy. Poorly managed associations, on the other hand, can drag down property values and make living there difficult for residents. For these and other reasons, it is essential for you to research all aspects of the associations before you become its newest member.

If possible, call and meet with the association president and attend a board meeting. If you are the type of person who takes offense with those that intrude into your private life and the association appears to be more interested in gossip than maintaining the property, this may not be the right place for you. Are the meetings conducted in a business like manner, and are the residents treated fairly and professionally? A board meeting will certainly reveal evidence regarding the association’s manner in which they conduct themselves.

Associations are volunteer organizations with elected board members who may have either very little or a great deal of time to spend on the association. This may prove to be good or it might be problematic for the association. Talk to your potential neighbors to get their ideas about the community association. They may be able to tell you plenty about the group’s dynamics, as well as their own opinions about how the association carries out its goals and takes care of business.

Lastly, take some time to understand how the association is legally organized and how business is conducted. Like all real estate investments, the more you know the better off you are. If you choose to live in a condominium pay your assessments on time, read the newsletters/notices and the community website. Attend the annual meetings where you have the right to vote on amendments and elect members to the board of directors. If you want to play a bigger role in the community, join a committee, serve on the board of directors and/or volunteer to assist with a project. Most importantly, remember the bottom line: once you sign on the dotted line… you have agreed to become a member and abide by the rules of the community. After compiling all of the information and weighing the pros against the cons, you will be more inclined to make an educated decision on whether or not condominium living is right for you.

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