Sticker shock when you see a condo’s monthly fee in Condado? You are not alone. Between coastal weather, amenity-rich towers, and complex insurance needs, HOA dues can feel confusing at first glance. This guide breaks down what those fees usually cover, how they affect your monthly budget and rental returns, and the documents to review before you commit. Let’s dive in.
HOA fees in Condado at a glance
Condado sits on San Juan’s coast with high walkability and in-demand amenities. That lifestyle comes with operating costs. The biggest drivers you will see in budgets include:
- Coastal exposure to wind, salt, and storms that increases maintenance and insurance.
- Amenity intensity such as pools, gyms, rooftop spaces, and on-site staff.
- Building age and condition affecting repairs and reserves.
- Management approach and staffing levels.
- Occupancy and rental mix that can influence wear-and-tear and cash flow.
These factors vary by building, which is why fees can look very different from one tower to the next.
What HOA fees usually cover
Common-area maintenance and repairs
Most budgets include routine janitorial, hallway and exterior lighting, pool care, landscaping, pest control, and small repairs. In Condado, salt and humidity accelerate corrosion and surface wear, so exterior paint, waterproofing, and mechanical components often need more frequent attention. That reality shows up in annual line items.
Utilities and shared services
Associations pay for electricity in common areas, elevator power, pool pumps, and water for landscaping or pools. Some buildings include unit water service, while others do not. Trash, recycling, and sewer services for the building are usually in the operating budget.
Master insurance and deductibles
The HOA carries a master policy that typically covers the building structure and common elements. Owners still need their own HO-6 policy for interior finishes and personal property unless the master policy states otherwise. In Puerto Rico, hurricane and wind exposure push premiums and deductibles higher, and flood protection can be a separate policy. Deductibles for wind events may be a percentage of insured value, which can be large after a major storm.
Reserves and capital projects
Healthy associations fund a reserve account for big-ticket items such as roofs, façades, elevators, and pool replastering. Best practice is to set reserves using a professional reserve study. Underfunded reserves are a leading reason for special assessments when large projects arise.
Management, staffing, and security
Professional management fees, accounting, and administrative costs are standard. Many Condado towers have on-site staff such as concierge, doormen, maintenance, and 24/7 security. Payroll for these roles can be a significant share of the monthly budget.
Elevators, mechanicals, and contracts
Elevator maintenance contracts, required inspections, part replacement, and service plans for HVAC, generators, and pumps are common. In older buildings, upgrades may be scheduled over several years and funded through reserves or assessments.
Landscaping, trash, and exterior services
Tropical landscaping often requires more frequent care. Waste management and recycling are recurring costs, and rates can reflect the area’s tourism and density.
What fees usually do not cover
- Individual unit electricity and most in-unit utilities.
- Interior finishes and personal belongings.
- Your individual property taxes and mortgage payments.
- Your HO-6 policy unless stated in governing documents.
How fees affect monthly affordability
Your monthly ownership cost is more than just the mortgage. A practical formula is:
- Monthly cost = Mortgage payment + Property taxes + HOA fee + HO-6 insurance + Utilities you pay + Parking fees (if any) + Other recurring fees.
Because lenders include HOA dues in qualifying ratios, a higher monthly fee can affect what you can borrow. Two similar condos can feel very different once you add the fee and what it includes. For example, if one building includes water, security, and a generator while another does not, an apples-to-apples comparison needs to count those differences in your monthly picture.
Use this quick checklist when you model affordability:
- Identify what the fee includes, especially water, internet, and amenities you would otherwise pay for.
- Add your HO-6 premium and any parking or storage fees.
- Confirm typical utility costs billed to the unit.
- Ask about recent or upcoming fee increases and any special assessments.
- Review reserve strength to gauge the risk of future assessments.
How fees affect rental yield
If you are purchasing with rental income in mind, HOA dues are a core operating expense. Start with two simple calculations:
- Gross rental yield (%) = (Annual gross rent / Purchase price) × 100.
- Net yield (%) ≈ [(Annual rent − Annual operating expenses) / Purchase price] × 100.
Annual operating expenses should include 12 months of HOA dues, property taxes, insurance, vacancy, management fees (if used), routine maintenance, utilities paid by the owner, and any permits or licensing costs.
Hypothetical yield example
- Purchase price: 400,000 dollars
- Monthly HOA fee: 750 dollars → Annual HOA = 9,000 dollars
- Annual gross rent (long-term): 24,000 dollars
- Other annual operating expenses: 6,000 dollars
- Net operating income = 24,000 − (9,000 + 6,000) = 9,000 dollars
- Net yield = 9,000 ÷ 400,000 = 2.25 percent
If the HOA were 350 dollars per month instead, annual HOA would be 4,200 dollars and net yield would move to about 3.45 percent. The takeaway is simple: HOA dues materially affect returns, so test your numbers with realistic fees before you buy.
Short-term rental considerations
Short-term rentals can boost gross income but often come with higher costs like cleaning, utility spikes, and more wear-and-tear. Many condo associations restrict or prohibit STRs in their governing documents. Violations can result in fines or legal action. Always confirm written rules, registration requirements, and any tourist taxes before underwriting an STR purchase.
What to review before you buy
Key documents to request
- Current association budget and year-to-date actuals.
- Balance sheet and reserve fund balance.
- Most recent reserve study or capital project plan.
- Association meeting minutes for the last 12 to 24 months.
- Certificate of insurance for the master policy, including wind and flood details.
- Declaration, bylaws, and house rules, including rental and pet policies.
- List of outstanding assessments and recently completed projects.
- Delinquency rate or collection history.
- Management contract terms if professionally managed.
- Pending litigation disclosures.
Smart questions to ask
- Does the monthly fee include water or any in-unit utilities?
- What are the master policy coverages and deductibles for wind and flood?
- Are capital projects or assessments planned in the next 1 to 5 years?
- What share of units are owner-occupied vs. rented?
- Are short-term rentals allowed, and what are the minimum lease terms?
- How often have fees increased, and by how much?
- What is the current reserve funding level relative to the reserve study?
Red flags in condo budgets
- No recent financials or reluctance to share meeting minutes.
- Low or near-zero reserves paired with an aging building.
- High delinquency rates that strain cash flow.
- Ongoing or recent litigation that could lead to big costs.
- Very low dues despite generous amenities, suggesting underfunded reserves.
- Association rules that conflict with your living or investment plan.
Puerto Rico specifics for Condado
Hurricane and wind exposure
Insurance is a major budget line in Puerto Rico. After severe storms, premiums and deductibles can increase. Wind deductibles based on a percentage of insured value can translate into large out-of-pocket costs for the association if a major event occurs.
Flood risk and coverage
Condado’s coastal setting means some buildings lie in FEMA flood zones or are vulnerable to storm surge. Flood insurance may be carried by the association and can be required for mortgages. Premiums and waiting periods affect operating costs, and coverage details are important for risk planning.
Utilities and backup systems
Island-wide power or water interruptions can add operating complexity. Some buildings maintain backup generators or water systems, which improve resilience but increase maintenance and fuel costs reflected in HOA budgets.
Condominium governance and dues allocation
Puerto Rico condominium law and each building’s declaration set governance rules. A unit’s percentage share of common elements (coeficiente de copropiedad) typically determines its share of monthly dues. This percentage is in the governing documents and can explain why similar-sized units have different assessments.
Licensing and tourist taxes for STRs
Short-term rentals may be subject to tourist taxes and municipal licensing. Some associations require operator registration or restrict STRs entirely. If you plan to rent short-term, include these costs and rules in your analysis before you buy.
Seasonality and demand
Tourism and corporate demand create seasonal patterns in Condado. Model occupancy and pricing conservatively, and stress-test scenarios that account for HOA dues, utilities, and insurance.
Compare buildings apples-to-apples
- Calculate total monthly cost, not just the fee. Add utilities, HO-6, and any parking or storage.
- Standardize on a per-square-foot or per-bedroom basis to compare value.
- Note what the fee includes, especially water, internet, security, and generator.
- Review reserve health and any known projects that could trigger assessments.
- Weigh amenity value against ongoing operating costs.
- Align rules with your living or investment plan, including minimum lease terms.
Your next step in Condado
If you want clarity on HOA fees and how they affect your budget or returns, we can help. Our team blends technical analysis with a concierge approach to model affordability, compare buildings, and run rental-yield scenarios so you can make a confident choice. Ready to review specific buildings and their budgets in Condado and greater San Juan? Connect with Gigi Sheppard for a personalized plan.
FAQs
What do HOA fees cover in Condado condos?
- Most fees cover common-area maintenance, building utilities, master insurance, reserves, management, staffing, and contracts for elevators and mechanical systems; exact inclusions vary by building.
How do HOA fees affect my mortgage qualification?
- Lenders include the monthly condo fee in your debt-to-income calculation, so higher dues can reduce how much you qualify to borrow and change your target price range.
Are short-term rentals allowed in Condado buildings?
- Rules differ by association; many buildings restrict or prohibit STRs in their bylaws or house rules, so verify written policies, registration needs, and any tourist taxes before you buy.
Does the master insurance cover my unit interior?
- The HOA’s master policy typically covers the structure and common elements; you usually need an HO-6 policy for interiors and personal property unless the governing documents say otherwise.
What is a special assessment and why does it happen?
- A special assessment is a one-time charge to fund major repairs or projects when reserves are insufficient, often tied to capital needs like roofs, façades, or mechanical upgrades.
Do HOA fees in San Juan include water or electricity?
- Common-area utilities are usually included, but unit electricity is typically separate; some buildings include unit water service, so confirm inclusions with the association’s budget and rules.
