10 Condo Questions To Ask

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Before you buy in a Miami condo, it is important to contact the condo board or management company and ask several questions. During this process you will learn how responsive and organized the management or board members are.

Here is a list of several important considerations and facts you need to obtain before making your investment:

1. What percentage of the units are owner-occupied? In general, the higher the percentage of owner-occupied units, the more marketable the units will be for resale and the easier it will be to obtain financing.
2. What bylaws and restrictions govern the property? What rental restrictions are in place? You may determine, for instance, that you cannot rent out the property during the first year of ownership or that only a certain percentage of units may be rented at one time.
3. How much does the association keep in reserves? How does the association invest the reserves? If there is a shortfall in the reserves, there may be an upcoming assessment, or you may find it difficult to obtain financing.
4. What exactly does the fee cover? Common area maintenance, cable, water, garbage removal, recreational facilities, building liability insurance, Internet, air conditioning?
5. What special assessments have been mandated in the past 5 years? How much was each owner responsible for? Repeated special assessments can be a red flag about the condition of the building, management, or the board’s fiscal policy.
6. How much turnover occurs in the building? If there is a lot of turnover, you may want to ask other owners in the building about their experiences.
7. Is the project or board involved in any litigation? If the board is involved in any major litigation, or having to foreclose on lenders to get the maintenance fees paid, reserves may be quickly depleted.
8. Is the developer reputable? This is especially important if buying in a building that was a conversion. If the roof, windows, and balconies are in bad condition, they become your problem once you become an owner.
9. Are there multiple associations involved in the property? In very large developments, there may be several associations as well as one umbrella association, and each may require separate assessments.
10. Are the assessments or maintenance fee increases reasonable? Smart associations raise assessments by a certain percentage each year to build reserves for future repairs. On the other hand, unreasonable assessments should be questioned.

If you would like further information in regard to buying a condo in Miami, please free to contact us at (305) 673-5300 or via email info@miamiangelproperties.com.

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