Reasonable Increase in HOA fees???

Question

I bought a 3 bedroom / 2 condo in Orlando, FL three years ago. I have seen the HOA monthly fees go up for the past years by an average of 12%. Now, if our HOA fees started at $150/mnth and went up 12% every year for the next 30 years, my projection tells me that my HOA is going to be $3,196/mnth!? Is that amount realistic for my HOA to charge me?

Answer 1

I bet you bought it new.

Dues are always super low when the development is new, for two reasons: Buildings are new, and the developer doesn't want to scare you off.

My condo dues went from $150 to $235 in 3 years, after I bought it new. That sucked.

You are basically seeing a "correction" in what needs to be charged, in order to budget properly for future maintenance. It should stabilize soon.

And it's a good idea to attend your HOA meetings, so you can find out directly why your dues go up, and where that money is actually going.

Answer 2

Sounds like you have answered your own questions. There should be reasons behind why they go up. As a condo owner, at some point, you should be in control of the HOA - at least with the rest of the owners.

What do they need the money for? There should be an answer to that questions. Raising rates 12% seems a lot - but there may be a good reason.

Best of luck.

Joe...

Answer 3

I would check-out the laws in Florida for Condo Associations.

In California it has becoime a law that Associations must maintain adequate funds for repairs. Plans must be adopted at an open meeting andadditional assments must be approved at a seperate meeting and must justify the increase. Also, Board members are cannot participate who have a financial interest in the decision.

Remember that you must keep up with inflation..12% a year maybe a bit high but building repair and cost soars.

Good Luck.

Answer 4

No, that amount is not realistic.