Advantages & Pitfalls of Community Living

Advantages & Pitfalls of Community Living


Many retirees will find that Florida's over-55 communities offer a lot of advantages for them. However, they are not the right living choice for everyone! Some retirees may not desire to live under the rules and regulations (often rigidly enforced!) that necessarily accompany such community living such as leasing or pet restrictions. Others may not like the age segregation, and desire to live with neighbors of all ages. It's true that over-55 communities are generally quieter than all-age condo or apartment communities, and they are often less expensive for similar space. During the past decade, the population of Pinellas County has actually gotten younger on average. That's probably why over-55 communities in the current Pinellas County real estate market often offer more value for the money than non age-restricted condominiums. Many retiring baby boomers will doubtless be attracted to the St Petersburg area as a retirement destination, and I suspect this situation will change during the next decade.

Many retirees just moving to Florida desire the "built-in" sense of community that many complexes offer. You are likely to be living with people from similar backgrounds and interests as you. Many seniors want to be free of yard work and exterior maintenance at this stage in their lives, but they still want the advantages and sense of security of owning their own residence. What's more, Florida's generally balmy weather induces many to desire such outdoor features as swimming pools, tennis courts, shuffleboard courts,broad green lawns, and even docks. Most of our local over-55 communities offer all or most of these amenities without the expense and maintenance required for those who live in an individual single family residence.

External Amenities & Parking

The existence of desirable recreational amenities is only one among many considerations when a prospective buyer is comparing communities. What about the parking situation? How important is under-roof parking such a carport or garage to you. Keep in mind that the hot Florida sun and sudden torrential downpours can make a mess of automobile finishes. Is there sufficient space for guest parking? Is there a club house and/or organized group activities that interest you? How well maintained are the grounds and community areas? Even though most local active over-55 communities are four or five decades old, the great majority are very well maintained. Also, they were constructed when land in this area was far cheaper, and so often have far more green space per unit than communities constructed more recently even in less urban areas.

Lower Priced multi-story condo buildings often offer under roof
parking like this at Five Towns.

Legal & Association Governance Considerations

Equally important are the less visible aspects of the particular community you are considering. These include the legal and ownership structure. Is the community governed by a Homeowners Association or a Condominium Board? Does it hire a professional management company for day to day management and accounting? Is the underlying land leased or owned? What do the condominium documents, rules and regulations, stipulate about such important topics as pets, the right to lease your unit to others, and age restrictions on owners, occupants, and guests. What specific interior and exterior changes can an owner make to a unit without HOA approval?

Finances of the Homeowners Association (HOA)

Another vital consideration is the financial health of the building and/or complex. As the current Treasurer on the Board of my Homeowners Association, I've learned a lot about the financial and legal aspects of associations that govern such communities. These are critical. Let me repeat: Over-55 communities aren't necessarily the right choice for every retiree. Remember you are not simply purchasing your own unit but you are buying into an association--both its assets and its potential liabilities. As a resident you should pay close attention to your HOA and be prepared to volunteer as a participant.

Community tennis courts at Long Bayou

What do the Home Owners Association's financial statements say about the community's income, expenses, and reserves? Are too many of owners behind in their HOA payments? Under Florida law, the prospective buyer of a condominium or town home governed by a homeowner's association must be provided a copy of the latest financial statements as well as the governing documents for the community. The buyer then has three days to review them and, if they are not satisfactory to the buyer, he or she can back out of the transaction. One community may appear to offer the "advantage" of lower monthly HOA payments, but a diligent review of its finances could show that it is not building up sufficient reserves for expensive items such as road and parking space repairs, exterior building painting, and replacing the roof. Lower monthly HOA fees are hardly a plus if you will face an unplanned $6000 roof replacement assessment in the future!

A prospective buyer also needs to consider what utilities and insurance are included with the monthly HOA payment. Water, Trash, and county or municipal sewer charges are normally included as well as exterior maintenance. Basic cable TV service is often included as well. Exterior building insurance (which generally is comparatively costly in Florida) is almost always included. In areas deemed FEMA flood risk zones, this may also include building flood insurance. .

Buyer Due Diligence

This was just a cursory overview of a few important considerations that prospective buyers should keep in mind about any community association. Again, it is imperative that a prospective buyer needs to read the condominium documents and the rules and regulations very carefully. Most communities require that future residents meet with members of the Board for an interview and review of rules and regulations etc. Be sure at this point to raise any specific questions you may have about the condo docs and rules. In addition, I always recommend that my clients try to speak informally to residents they encounter when viewing the property.
You will find that most people are happy to speak to prospective residents about what life is like in that particular community. Below I've attached a link to an article about this very subject--"Seven Questions to Ask Your Future Florida Neighbors" on the Florida for Boomers website:

http://www.floridaforboomers.com/7-questions-to-ask-your-future-florida-neighbors/

Tony Branch
Earnest Realty, Inc.
3136 3rd Avenue North
St. Petersburg, Florida 33713
727-460-7887 direct line
727-323-1706 office
stpetetonybranch@gmail.com
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