If you are looking up Miami Beach condos online, you will probably come across a wide variety of numbers for the monthly maintenance fees. Maintenance fees vary building by building and are typically determined by two things: (1) the financial budget of the building and (2) the size of the unit. In Miami Beach it is common that the monthly maintenance fees are calculated by the square footage of the unit. So the larger the unit, the more expensive the maintenance fee for your Miami Beach condo.
Here’s what you need to know:
Find out what’s included in the fees.
What’s included also varies building by building. Sometimes what may appear to be expensive may actually be a really affordable number at the end of the day. For instance some of the Miami Beach condo buildings include air conditioning and water. So these are two utilities you wouldn’t have to pay out of pocket from your personal side.
If you want oceanfront, plan to spend more.
If you are considering an oceanfront condo in Miami Beach, you need to keep in mind that the wear and tear on an oceanfront building can be substantial versus an “off the sand” property. You also need to keep in mind that many oceanfront owners want the more luxury services like beach chairs, towels and umbrellas. There are significant costs involved with maintaining a service like that from the staff management to the materials they provide day in and day out.
Are reserves included?
Reserves collected (extra money collected on top of the budget that can be used for future projects, emergencies, etc.) are always a debatable subject in our city. In the past many Miami Beach condo owners didn’t want to pay for monthly reserves so when the building had to vote on it at years end, it was never voted into the budget. So reserves were never collected.
If the reserves aren’t collected and the building needs repairs, someone has to pay, so an assessment will be passed. A few years ago many owners had to pay large assessments to cover huge projects like the City’s mandated 40 year certification project (many buildings here were built in the 1960′s so the timing came up over the past few years).
After many owners were assessed large fees to cover the expense of these projects, the mentality started to change and now many buildings collect monthly reserves rather than assessing in large lump sums down the road. Today buildings that collect reasonable reserves are deemed “financially responsible buildings”.
What’ the main takeaway?
Before you make a snap judgement and rule out a building because the fees seem too high on the listing, find out exactly what’s included. Maybe at the end of the day when the math is calculated, it makes more sense. Maybe not.
We can always help you through that process.
Do you have a question about buying a Miami Beach condo?
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Copyright © By Jamey Prezzi 2013 * All Rights Reserved* Why are the Monthly Maintenance Fees so Expensive for Miami Beach Condos?