Investing & rentals
Davie Condo Investment Math: Evaluating HOA Dues
Quick answer
Dues can make or break a condo rental. Get the association's current budget, reserve information and meeting minutes, find out what dues include, and ask about planned or recent special assessments. Then run cash flow with rent you've verified from comparable leases — not the listing's estimate.
Read reserves and assessment records before projecting cash flow
§718.112 addresses association budgets and applicable structural-integrity reserve studies. Determine applicability, obtain current funding documents and include planned work without presuming every building has the same requirements.
§718.116 addresses assessments and estoppel information. Request current unit-specific balances and approved assessments. Confirm rent from legitimate comparable leases and keep vacancy and repairs as explicit assumptions, not invented market returns.
Cash-flow worksheet
| Line | Where to get it |
|---|---|
| Rent | Comparable leases (agent-verified) |
| Dues | Association budget / estoppel |
| Special assessments | Minutes, estoppel, management |
| Taxes | Property Appraiser estimator at your price |
| HO-6 insurance | Your insurance agent |
| Vacancy & repairs | Your own reserve assumption |
| Management | Manager's written quote |
Documents to request
- Current budget and reserve schedule
- Latest inspection or reserve study (if required)
- Last 12 months of board minutes
- Rules on leasing and rental caps
- Estoppel letter during the contract