- What should a Florida HOA or condo operating budget include?
- Operating budgets typically cover: management fees (if professional management), master property and liability insurance, common-area utilities (electric, water, trash), landscaping and grounds maintenance, pool service, elevator maintenance (if applicable), building maintenance and repairs, and a contingency reserve of 5–10%. The operating budget is separate from reserve contributions, which fund major repairs and replacements for long-lived components like roofs, paving, and pool equipment. Florida law requires condominiums (Ch. 718) and HOAs (Ch. 720) to maintain reserve accounts separately from operating funds in most circumstances.
- How is the monthly HOA fee calculated from the budget?
- The per-unit monthly assessment is calculated by dividing the total annual operating budget by the number of units (or ownership percentages for fractional ownership), then dividing by 12. For example, a 100-unit association with a $600,000 annual budget needs $6,000 per unit per year, or $500 per month. This calculator uses equal-share allocation; your governing documents may specify a different allocation method - for example, allocating by square footage or unit type. Consult your Declaration of Covenants or condo documents for the correct allocation formula.
- What does Florida law require for HOA and condo budgets?
- Florida condominiums under Chapter 718 must provide owners with a proposed budget at least 14 days before the budget adoption meeting (F.S. § 718.112(2)(e)). HOAs under Chapter 720 must provide owners the opportunity to review a proposed budget (F.S. § 720.303(6)). In both cases, the budget must include a statement of reserves if the association maintains reserve accounts. For condominiums subject to the Structural Integrity Reserve Study (SIRS) requirement, the budget must reflect the funding level required by the most recent SIRS for structural components.
- What is a typical HOA management fee in Florida?
- Professional management fees in Florida typically range from $10–$25 per unit per month for full-service management, depending on the association size, location, and services included. Larger associations (200+ units) often negotiate lower per-unit rates. Smaller associations (under 50 units) frequently pay at the higher end of the range or a flat monthly fee that works out to more per unit. This estimator uses market benchmarks from Florida's community association industry as of 2026. Actual fees vary - get multiple management proposals before budgeting a specific number.
- Why are Florida HOA insurance costs so high?
- Florida's property insurance market has experienced significant disruption since Hurricane Irma (2017) and Ian (2022). Many carriers have exited the Florida market, leaving Citizens Property Insurance as the carrier of last resort for many associations. Post-Surfside, condominiums face additional D&O and structural coverage requirements. Master policy premiums for coastal associations can range from $800–$2,500+ per unit annually in today's market, with inland associations generally at the lower end. This estimator uses a wide range to reflect that variance - verifying your actual premium with a licensed insurance agent is essential before adopting a budget.
- What's the difference between the operating budget and the reserve fund?
- The operating budget covers day-to-day expenses that recur annually: management, insurance, utilities, landscaping, pool service, and routine maintenance. The reserve fund covers major repairs and replacements for long-lived common elements - roof, pavement, pool equipment, elevators, building exteriors. Florida law now requires condominiums to fund reserves at the level recommended by a Structural Integrity Reserve Study (SIRS) for structural components (F.S. § 718.112(2)(f)). This estimator covers the operating budget only - use the SIRS Reserve Planner for reserve calculations. Reserves are line-itemed here as a reminder link, not an estimate.