How do I know if HOA will increase or have a big payment?

Smart question, and the answer is in the HOA's financial documents. You have the right to review them before you buy, and you absolutely should. Request the HOA's most recent financial statements, the current budget, and the reserve study. The reserve study is the most important document because it shows the condition and expected lifespan of major building components like the roof, elevators, parking structures, plumbing, and common area systems, along with how much money the HOA has set aside to replace them. If the reserve fund is well-funded, meaning it has enough money to cover anticipated repairs without a special assessment, you're in good shape. If the reserves are underfunded, a special assessment is more likely. Look at the reserve funding percentage. A healthy HOA is typically 70 percent funded or higher. Below 50 percent is a red flag. Below 30 percent means a large assessment is almost inevitable. Review the meeting minutes from the last 12 to 24 months. Board meetings often discuss upcoming capital projects, deferred maintenance, and potential assessments before they're officially approved. If the board has been talking about a major roof replacement or elevator modernization, that cost is coming whether you own the unit yet or not. Ask your agent or attorney to review these documents with you. A $20K surprise assessment is avoidable if you do the homework before closing.

Unfortunately, outside of reviewing the current HOA financials, there is no sure-fire way to determine if the HOA fees will ever increase. I always tell our clients that have this fear to plan for them to go up 50% over the next 5 years as a worst-case scenario.

Smart instinct. Post-Surfside, Florida condos have real exposure on this. Here's what to pull before you close. Request from the HOA or management company: (1) the current-year budget, (2) the reserve study (how funded are they vs. what's required), (3) the last 3 years of board meeting minutes, (4) the statement of reserves required under Florida SB 4-D for buildings 3 stories and up, including any Milestone Inspection and Structural Integrity Reserve Study, (5) any pending or recently levied special assessments, and (6) pending litigation against the association. Red flags: reserves under 40% funded, no reserve study on file, minutes that mention "deferred maintenance", "roof concerns", or "concrete repair", and an aging building past 25 years with no milestone inspection scheduled. A $20K assessment rarely shows up without 12 to 24 months of warning in the minutes. Your agent can help pull and read through these. -- Kevin Neely | K2 Sells

Review the "Reserve Study" and the "Annual Budget" before closing. In 2026, look for a Reserve Funding Level of at least 70%; anything lower is a red flag for an upcoming "Special Assessment" (a large one-time payment). Also, check the meeting minutes from the last 6 months for discussions on "deferred maintenance" like roofing or siding—these are the primary drivers of sudden, massive fee increases.

Get the HOA's financials before you buy. Look at their reserve fund - if it's low or they've been deferring maintenance, a special assessment is coming. Check meeting minutes for the past year to see what they're discussing. If they're talking about roof replacement or major repairs but haven't started collecting yet, that's a red flag. Ask how old major systems are - roof, HVAC, elevators, parking structures. If they're near end of life and reserves are weak, you're looking at an assessment. Your lender should require an HOA questionnaire that shows financial health. Read it carefully. If the condo's finances look shaky or reserves are under-funded, walk away or negotiate a lower price to cover the risk.

A condo can look perfectly fine on the surface, but the real story is in the HOA’s financials. Special assessments don’t come out of nowhere — they come from predictable warning signs. If you know what to look for, you can avoid walking into a $20,000 surprise. 1. Start with the HOA’s financial documents — these are the real truth You should review three things: A. The budget Shows whether the HOA is operating at a surplus or deficit. B. The balance sheet / reserve account Shows how much money they have saved for major repairs. C. The reserve study Shows what big projects are coming and whether the HOA has enough money to pay for them. If the HOA refuses to provide these, that’s a red flag by itself. 2. The reserve study is the most important document A reserve study tells you: - What major components need replacement (roof, siding, paving, elevators, plumbing) - When those components are expected to fail - How much they will cost - Whether the HOA has enough money saved to cover them If the reserve study says the roof needs replacement in 2 years and the HOA has almost no reserves, you can expect a special assessment. 3. Look at the reserve fund balance This is where most buyers get blindsided. A healthy HOA typically has 70% or more of the recommended reserves funded. A weak HOA may have 10–40% funded, which almost guarantees future assessments. If the reserve fund is low, you are the one who will make up the difference. 4. Review the meeting minutes Board meeting minutes often reveal: - Discussions about upcoming repairs - Complaints about deferred maintenance - Debates about raising dues - Warnings about underfunded reserves - Contractors giving estimates for major projects Minutes are where the HOA says the quiet part out loud. 5. Ask directly about planned or pending assessments Your agent can request: - Any approved assessments not yet billed - Any proposed assessments - Any projects being discussed - Any engineering reports or inspections If the HOA is considering a major repair, they must disclose it. 6. Walk the property with your eyes open Deferred maintenance is visible: - Cracked pavement - Rotting wood - Old roofs - Failing siding - Rusting railings - Water intrusion - Poor drainage If the property looks tired, the HOA is likely underfunded. 7. Compare the monthly dues to similar communities If the dues seem unusually low, that’s not a bargain — it’s a warning sign. Low dues often mean: - No reserves - Deferred maintenance - Future assessments Healthy HOAs charge enough to maintain the property properly. 8. Ask your lender and insurance agent Lenders and insurers often know which buildings have: - Structural issues - Litigation - Underfunded reserves - Repeated assessments If they hesitate, that’s a sign. Bottom line You can absolutely protect yourself from a surprise $20,000 assessment by reviewing: - The reserve study - The reserve fund balance - The budget - The meeting minutes - Any pending projects or assessments A well‑run HOA is transparent, well‑funded, and proactive. A poorly run HOA hides problems until they become your problem.

The truth is, you cannot predict it with 100 percent certainty, but there are very clear warning signs that can tell you if a big assessment is coming. First, review the condo documents carefully. You want to look at the budget, financial statements, and reserve study. The biggest thing you are looking for is reserves. If the HOA does not have enough money saved for future repairs, that is when special assessments happen. Second, ask specifically about upcoming repairs. Things like roofs, elevators, parking lots, and structural work are big ticket items. If those are older and there is no money set aside, that is a red flag. Third, read the meeting minutes. This is where you will often find the real story. If the board has been discussing repairs, engineering reports, or rising costs, that can be an early warning that something is coming. Fourth, look at the age and condition of the building. Older buildings with deferred maintenance are much more likely to have large assessments, especially in Florida where new laws are pushing associations to fully fund reserves. You can also ask directly if there are any pending or approved special assessments. They are required to disclose that. From a strategy standpoint, if you see potential risk, you can negotiate for a credit, ask the seller to pay an upcoming assessment, or simply walk away if it does not feel right. Bottom line, HOAs can look affordable on the surface, but the real question is how well they are managed behind the scenes. Doing this homework upfront can save you from exactly the situation you are trying to avoid.

If you’re renting, you usually won’t get hit with a direct HOA special assessment—but it can still affect you. The owner (landlord) pays it, and they may raise your rent, not renew your lease, or pass costs indirectly. To protect yourself, ask: “Has the HOA approved any special assessments or big repairs?” and check if rent increases are capped in your lease. Also look for signs like ongoing construction, aging buildings, or talk of repairs—those often mean costs are coming. Bottom line: you won’t get a $20K bill, but you could feel it through higher rent or instability.

This is a great thing to be looking into before buying a condo. When purchasing a condo the seller is required to supply the buyer with the most recent year financial statement, declaration of condominium, bylaws, and rules of the association, articles of incorporation, FAQ’s, and recent financial statement. The buyer has three days to review these documents with the ability to cancel if not satisfied. I would also ask your Realtor to request the monthly meeting notes to see if there are any current pending or upcoming increases being discussed. Once you’re under contract an HOA estopple will be obtained which will return the results of any current pending upcoming assessment as well allowing you to review prior to closing.

My real-world rule: If I see an older condo with low reserves + recent repair discussions + rising insurance, I assume there is a very real chance of a large assessment. The safest move is to ask directly in writing: “Are there any pending, discussed, or anticipated special assessments or major repairs being considered by the board?” That written answer matters. If anything feels borderline, negotiate one of these before closing: seller credit price reduction escrow holdback seller pays any assessment approved within a certain period In today’s Florida condo market, especially with reserve law changes, this due diligence is no longer optional. It’s one of the most important parts of protecting your budget before you buy.