In Miami, one common reason for a bank to deny a condo mortgage approval is not the individual's credit score or income, but rather the financial condition of the building itself. Lenders assess the HOA's delinquency rate, reserve fund ratio, ongoing lawsuits, and the proportion of commercial space. If these criteria are not met, the condo may be classified as a non-warrantable condo, leading to outright loan denial or stricter conditions. Recent trends in the Miami market show an increase in such cases.

The median management fee for high-rise condos in the Miami-Dade area surpassed $1,900 per month as of 2025, an increase of about $500 compared to the previous year. Full-service buildings that are nearly new have management fees ranging from $0.75 to $1.50 per square foot, meaning a 1,500 square foot unit could incur management fees of $1,125 to $2,250 per month. Since 2020, condo HOA fees in the Miami area have risen approximately 40 to 55 percent, with the largest increases seen in older buildings that lacked sufficient reserves.

This sharp increase is attributed to rising insurance premiums and the introduction of the SB 4-D law following the Surfside condo collapse in 2021. Buildings with three or more stories are now required to conduct a Structural Integrity Reserve Study, and starting at the end of 2024, it will be prohibited to make decisions that do not collect reserves. The deadline for completing these studies is December 31, 2025, and many older buildings in Miami are currently in the process of filling their reserves to meet this deadline.

As a result, when looking at condos in Miami, it is essential to compare new buildings with older ones. New buildings may have lower initial management fees, but the potential for significant increases as reserves are built up should be considered. Older buildings may vary greatly in financial condition, depending on whether they have already met the SB 4-D requirements for reserves.

Key items to verify before signing a contract include:

• Completion and results of the Structural Integrity Reserve Study
• HOA financial statements for the last three years
• Current reserve balance and its ratio compared to recommended levels
• Delinquency rates and ongoing lawsuits
• Any history of being classified as non-warrantable by lenders

For families or investors looking for condos in preferred Korean communities, it is wise to budget generously, considering that management fee increases may continue. If expecting rental income from an investment, it is advisable to calculate the impact of management fee increases on net profits.

When exploring condos in Miami, it is more realistic to assess not just the purchase price but also to estimate how much management fees may rise over the next 3 to 5 years. Buildings that have already met the SB 4-D standards may experience relatively moderate increases, while those that have not completed their studies could see significant jumps in fees based on the study results.

If considering investments between Korea and the U.S., it is worth noting that the Miami condo market is significantly influenced by international buying trends. However, this demand does not always guarantee price increases, so it is essential to carefully evaluate management fees and financial conditions before proceeding.

For families looking for condos in preferred Korean areas, it is advisable to check the financial status of the building along with school district ratings and any upcoming construction plans. School district boundaries can change frequently, so it is important to verify the assigned school for the specific address before purchasing. Comparing new and older buildings can be a good first step in the condo buying process in Miami.

This article is not investment or legal advice, and it is recommended to consult with a professional before finalizing any contracts.