Buying a condo can be an amazing lifestyle move. Less exterior maintenance, amenities at your fingertips, and often a more lock-and-leave setup that works beautifully for second homes or investment properties.

But here’s the part many buyers underestimate:

When you buy a condo, you’re not just buying the unit — you’re buying into the homeowners association.

And the HOA doesn’t just make friendly suggestions. It sets rules, controls major financial decisions, influences your monthly costs, and in some cases can even impact how easy (or hard) it is to sell later.

So before you get to the closing table, let’s slow down and make sure you’re asking the right questions.

Here’s your guide. 👇

1. What are the rules?

HOA rules are legally binding. Once you own the condo, you agree to follow them whether you love them or not.

Some associations are relaxed. Others are very particular.

Make sure you understand:

• Are rentals allowed at all?

• Is there a minimum lease term?

• Are short-term or vacation rentals restricted?

• Are there limits on the number, size, or type of pets?

• Are there rules about noise, parking, balconies, or exterior modifications?

If you’re buying with the intention to rent, bring guests frequently, or keep furry family members, this step is absolutely critical. A surprise restriction discovered after closing can turn a dream purchase into a stressful one fast.

Always review the governing documents — not just the MLS remarks or what someone “thinks” is allowed.

2. How much are the dues — and what do they cover?

Condo dues are typically higher than what you see in many single-family neighborhoods, but that doesn’t automatically make them bad.

It all comes down to value and predictability.

Ask:

• What are the dues?

• How are they billed — monthly, quarterly, annually?

• What’s included?

Coverage often pays for things like:

• Building insurance

• Exterior maintenance

• Landscaping

• Water/sewer/trash

• Amenities such as pools or gyms

• Sometimes even cable or internet

Next, look at history and future expectations.

• Have dues increased recently?

• Is there a pattern of regular increases?

• Are more increases anticipated?

A well-run association plans ahead and adjusts gradually. Big, unexplained jumps can signal deeper issues.

3. Let’s talk about the HOA’s financial health

This is where the real detective work happens.

You want to know whether the association is stable and responsibly managed.

Key questions include:

• How healthy is the reserve fund?

• Are there any upcoming special assessments?

• What percentage of owners are behind on dues?

• Is the HOA self-managed or run by a professional management company?

• How is communication with residents?

Think of reserves as the building’s savings account. Roofs, elevators, siding, parking lots — they all wear out. If there isn’t enough money saved, owners can be hit with large surprise bills.

And nobody enjoys opening that letter.

4. Insurance: what’s covered and what’s not?

Insurance in condos can be confusing because responsibility is shared.

The HOA typically insures the building structure and common areas. But where that coverage stops — and where yours starts — can vary.

You need to understand:

• What exactly does the master policy cover?

• What is the unit owner responsible for?

• Are there gaps you must insure separately?

• What is the deductible?

After a storm or plumbing leak is a terrible time to discover you misunderstood your responsibility.

Clarify this upfront, then make sure your personal policy fills any holes.

5. Legal standing and lender approval

Even if you love the unit, the deal must also work for your lender.

Mortgage companies review HOA documents closely. If reserves are too low, delinquency rates are too high, or litigation is pending, financing can become difficult — or impossible.

Ask:

• Is the HOA currently involved in any lawsuits?

• Is it in good standing?

• Will the association meet your lender’s approval requirements?

Catching issues early prevents last-minute panic.

6. Red flags you should never ignore

Just like you’d heed a red “no swimming” flag when the ocean is churning and the waves are rough, here are a few more you shouldn’t ignore:

• Frequent or unexplained dues increases

• Low reserve balances

• High owner delinquency rates

• Talk of upcoming special assessments

• Ongoing legal disputes

• Rental restrictions that conflict with your goals

One red flag doesn’t always kill a deal, but it should absolutely trigger deeper investigation.

7. Remember what the HOA controls

When you purchase in a condo association, you’re agreeing to shared governance.

The HOA usually controls:

• Building maintenance and major repairs

• Common areas and amenities

• Exterior appearance

• Landscaping

• Parking rules

• Pet policies

• Rental regulations

Because these items affect monthly costs and buyer appeal, they can also influence your resale value down the road.

8. Who is responsible for what?

Here’s a simple way to think about it.

You are generally responsible for:

• Everything inside your unit

• Appliances

• Interior surfaces

• Day-to-day maintenance within your walls

The HOA typically handles:

• Exterior components

• Roof

• Foundation

• Shared systems

• Common spaces

Knowing where that line is drawn helps you budget properly and prevents expensive misunderstandings.

The bottom line

Buying a condo often means easier living — and for many people, that tradeoff is absolutely worth it.

But it requires more due diligence than purchasing a single-family home.

Review the documents.
Ask hard questions.
Understand the finances.
Confirm the insurance.
Make sure the rules align with how you want to use the property.

Do this work now and your future self will be incredibly grateful.

If you’d like help interpreting what these answers mean for a specific condo you’re considering, I’d love to help you build a strategy that protects your investment and supports your goals.

Because at the end of the day, there’s no better living than Sandbar Living. 🏖️

Want to learn more? Let’s talk about it: