Upgrades and Renovations Make Florida Association Costs Higher and Push Owners to Sell

Read the full article at South Florida Business Journal online.

The collapse of Champlain Towers South in Surfside has significantly impacted owners of older condos in South Florida, leading to increased financial burdens. With new state legislation requiring comprehensive inspections and structural integrity reserve studies for buildings over 30 years old, many condo associations face escalating costs to address overdue repairs. This has resulted in soaring association fees and special assessments, and market dynamics have shifted as potential buyers now favor newer buildings to avoid these complications.

The demand for qualified engineering firms and contractors to conduct inspections and SIRS is also creating delays and driving up costs.

“Ever since the Surfside collapse, you have engineers being much more critical of buildings,” said Doug Weinstein, Senior Vice President of Operations for AKAM Southeast. “There’s a shortage of engineering firms and qualified contractors to do the actual restoration work. That, of course, will drive up prices.”

Overall, the condo market in South Florida is facing a challenging environment, especially for older properties.