Why Understanding Condo Fees Matters More Than Ever

If you’re considering buying a condo in Palm Beach County — whether in Boca Raton, West Palm Beach, Jupiter, Palm Beach Island, or Singer Island — one of the biggest variables you’ll encounter is the HOA fee. These monthly dues can range from under $400 to over $2,000 or more depending on the building, location, amenities, age, reserves, and level of service.

Condo fees are often misunderstood, yet they are one of the most important financial factors to evaluate before choosing a building. Done right, HOA fees protect your investment and provide a predictable, stable ownership experience. If overlooked, they can lead to surprises, unexpected costs, and even difficulties during resale.

As a full-time Realtor specializing in Palm Beach County, I review HOA budgets, reserves, assessments, and financials for condo buildings every week. This expanded guide will help you understand exactly what to look for — and how to compare buildings with confidence.

1. What Condo Fees Typically Cover in Palm Beach County

HOA dues pay for the ongoing operation, maintenance, and improvement of the building and its amenities. While every building is different, most condo fees include a combination of the following:

Building & Grounds

• Exterior building maintenance

• Landscaping and irrigation

• Pool maintenance

• Roof and structural upkeep

• Pest control for common areas

• Cleaning and janitorial services

Utilities Included in Many Buildings

• Water and sewer

• Trash removal

• Basic cable or premium cable

• High-speed internet (very common in newer or renovated buildings)

Security & Safety

• Gate access control

• Doorman or security personnel

• Surveillance cameras

• Fire safety systems

Amenities (varies by building)

• Fitness centers

• Clubhouses and community rooms

• Tennis or pickleball courts

• Heated pools and spas

• Saunas or steam rooms

• Social programs and events

• Private beach access

• Marina maintenance (if applicable)

Insurance

Most HOAs carry:

• A master insurance policy that covers the building structure and common areas.
  Owners still need their own “walls-in” policy (more on that below).

Reserve Funding

A portion of the monthly dues goes toward long-term maintenance and repairs — the foundation of a well-run building.

2. Why HOA Fees Can Vary From $400 to Over $2,000/Month

Palm Beach County has some of the most diverse condo inventory in Florida — from 1960s garden-style communities to brand-new luxury towers.

Here are the biggest factors that influence cost:

A. Age of the Building

Older buildings require more maintenance and may need to build stronger reserves due to Florida’s new structural integrity laws.

B. Amenities & Staffing

Buildings with:

• Full-time concierge

• Valet services

• On-site management

• Multiple pools

• State-of-the-art gyms

• Private beach clubs

…naturally have higher operating costs.

C. Location (Especially Waterfront Buildings)

Oceanfront condo buildings face:

• Higher insurance costs

• Salt-air corrosion

• More frequent maintenance needs

Intracoastal and ocean views are incredible — but they come with operational realities.

D. Size of the Association

Larger buildings can spread costs across more owners; smaller boutique buildings may have higher dues per unit.

E. Reserve Requirements Under Florida Law

New laws require buildings to fund reserves more aggressively to avoid structural issues and unexpected assessments.

This has increased fees in some communities — but it also safeguards long-term property value and owner safety.

3. Reserves: The Most Important (and Overlooked) Part of Condo Ownership

Strong reserves = strong building.

Reserves are savings the association sets aside for major future expenses. These include:

• Roof replacement

• Elevator upgrades

• Concrete restoration

• Parking lot resurfacing

• Painting and waterproofing

• Electrical and plumbing system repairs

Why reserves matter so much

A building with weak reserves is more likely to require special assessments, which can cost owners thousands — sometimes tens of thousands — unexpectedly.

Questions buyers should always ask

• How much is currently in reserves?

• Are reserves fully or partially funded?

• When was the last reserve study done?

• Are upcoming projects already budgeted for?

If you’re working with me, I help review these documents so you’re not guessing or missing red flags.

4. Special Assessments: What They Are and Why They Happen

Special assessments are temporary fees charged to owners when reserves aren’t high enough to cover a major project.

Common reasons for assessments

• Concrete restoration (very common in older oceanfront buildings)

• Roof replacement

• Elevators

• Plumbing or electrical upgrades

• Unexpected repairs

• Insurance premium increases

Good buildings won’t hide assessments

Well-run boards are transparent, proactive, and budget responsibly.

Poorly run buildings?
Often reactive — and costly.

This is why reviewing HOA meeting minutes and reserve studies is essential.

5. How Florida’s New Condo Laws Affect Fees

After the Surfside tragedy, Florida passed new safety and reserve laws (SB 4-D & SB 154). These laws require:

• Mandatory structural inspections

• Full reserve funding for specific components

• More transparency for owners

• Stricter tracking and reporting

Impact on fees

Some buildings have already increased dues to meet the new requirements.

This is not a bad thing — it greatly reduces risk for buyers and protects long-term property values.

Buildings that haven’t adjusted yet may experience future assessments or sudden fee increases.

6. Evaluating a Condo’s Financial Documents (My Step-by-Step Process)

When I help a buyer purchase a condo, I break down the financials using a clear process:

During due diligence, I review:

• The current year’s budget

• Reserve funding schedule

• Full reserve study

• Master insurance policy

• Year-end financial statement

• Pending or planned projects

• Meeting minutes from recent board meetings

What I look for

• Are reserves adequate?

• Have assessments been frequent or heavy?

• Is the building deferring maintenance?

• Is the HOA board transparent and organized?

• Are insurance costs stable or rising?

• Is the building compliant with new laws?

• Are there major projects coming up?

This helps you avoid surprises and choose a building that fits your financial comfort level.

7. How to Compare HOA Fees Between Buildings

You should never compare HOA fees by number alone.

Key questions to ask:

• What exactly does the fee include?

• Are reserves strong or weak?

• What’s the age and condition of the building?

• Are amenities adding real value?

• Are there special assessments? Past or upcoming?

• What’s the insurance situation?

• Is the building financially strong or stretched thin?

Sometimes a building with higher fees is actually the better value because it is well-managed and has strong reserves.

8. Why HOA Fees Actually Protect Property Values

Strong HOAs make communities:

• More desirable

• Easier to finance

• Safer

• Better maintained

• More valuable long-term

Buyers want stability.
Lenders want stability.
Appraisers want stability.

Buildings with low reserves or weak boards often experience:

• Deferred maintenance

• Higher insurance costs

• Poor community appearance

• Lower resale values

The goal isn’t the lowest fee — it’s the smartest fee.

9. Final Thoughts: Making Smart, Confident Decisions as a Condo Buyer

Condo fees are one of the most important parts of buying a home in Palm Beach County. When reviewed correctly, they help you anticipate long-term costs, avoid unexpected assessments, and choose a building that aligns with your lifestyle and budget.

As a full-time Palm Beach County Realtor, I help buyers every day:

• Compare buildings

• Review HOA documents

• Understand reserves and assessments

• Evaluate long-term value

• Identify strong management vs. risky situations

• Secure the right condo that matches their goals

Buying a condo should feel exciting — not overwhelming.
When you understand the financials, everything becomes clearer and easier.

If you’re exploring condo options anywhere in Palm Beach County and want guidance tailored to your needs, you can start here:
👉 https://victorvelazco.com/buywithvictor

If you already own a condo and want to understand how your building compares — or what your property may be worth — you can begin here:
👉 https://victorvelazco.com/sellwithvictor

Whenever you’re ready, I’m here to help you move forward confidently.