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9 Hidden Costs of Buying a Condo That Catch Retirees Off-Guard

Condos make the home ownership dream a reality for many, but they’re not without risk.

By Cat Lafuente

Edited by Lauren Wellbank

Updated Feb. 24, 2025

There are undoubtedly a number of perks that come with condo living. Not only can they sometimes be cheaper to purchase than freestanding homes, but they typically come along with amenities like pools, gyms, and a built-in connection to a vibrant community of residents.

These features are often overseen by a board of volunteers known as a homeowners association (HOA).

However, just because you’re not responsible for an individual roof or lawn doesn’t mean you’re off the hook for any liabilities. And even though your condo may not have an HOA, it doesn’t mean there aren’t other fees you need to be aware of.

To avoid wasting money in retirement, or going over budget while living on a fixed income, you will want to ensure that you’re keeping all of these hidden costs that come with the condo lifestyle in mind before you buy.

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HOA fees

Every month, your HOA collects a fee from each resident to cover various costs like landscaping, pool upkeep, general building maintenance, and care for shared spaces like elevators, gymnasiums, and lobbies.

These fees may cover some utilities like trash collection and water bills as well. The amenities your development has can impact the size of that fee, which can range from hundreds to thousands of dollars.

And, it’s worth noting that Florida residents in particular may be subject to higher fees due to increased regulation post-Surfside. Since these fees can obviously add up, it’s important to take them into consideration.

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Special assessments

Sometimes, larger projects like roof problems, fire pump replacements, or other major expenses will cause the HOA to level a one-time special assessment to cover the cost of the repair.

Oftentimes this can be a larger payment, so it’s wise to set aside funds so you’re prepared. Note that HOAs have to vote on issuing special assessments, and feedback must be heard and proper notice given.

Homeowners insurance

If you buy a home, you need homeowners insurance, lest your mortgage company charge you for a policy or, worst case, drop you as a client.

Homeowners insurance also protects your condo, your belongings, and even your guests should something happen that causes damage or injury. So be prepared to pay for the policy annually and any deductibles that come with claims.

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Utilities

While some of your utilities may be covered by your HOA fee, others may not be. That means you may have to pay for gas, electricity, water/sewer, trash and recycling collection, internet, and cable on top of your monthly condo fees.

Property taxes

If you own property in the U.S., you have to pay taxes on it based on its value. Your bill will likely be smaller in a condo than in a larger house, but the bill will come annually nonetheless.

You can opt to have your taxes paid out of your mortgage escrow, which takes care of saving for it automatically. That can ease the burden of an unwelcome surprise bill.

Maintenance costs

Every home is subject to normal wear and tear over the years. Carpets can get worn and need replacing, paint jobs are subject to scuffs and chipping, and floors can get creaky. Plus every condo benefits from a good deep clean once in a while.

If you’re handy with a hammer, you can likely save on maintenance costs, but upkeep is still inevitable.

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Repair costs

Every homeowner dreads the day that their HVAC unit finally dies or the water heater stops working. These repairs aren’t cheap, though hopefully they don’t happen often.

If there are plumbing issues, you may be liable for some repairs, depending on your HOA bylaws. But count on paying for anything needed inside of your unit, such as demo and reno after a pipe repair.

Parking fees

This is highly dependent on your condo and location, as it might not be an issue at all in some developments. But in cities where parking is at a premium, you may be surprised to know that you’ll need to pay for parking spots, especially if you have more than one vehicle.

Storage fees

If you’re a minimalist, bravo, this probably won’t apply to you.

But if you have a lot of possessions — for example, if you’re downsizing from a house to a condo but haven’t parted ways with everything yet — you may need to keep some of your items in storage.

Some condos have on-site storage, but prepare for off-site storage if you plan to hold onto anything that doesn’t fit into your new home.

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Bottom line

As you set yourself up for retirement, making a move to a condo can be a savvy way to decrease costs and live your best life during your golden years.

But make sure you’ve read the fine print, checked the bylaws, and done your research in an informed manner so that you can avoid any unexpected costs.

But don’t think that living in a condo is all doom and gloom, as there can be some surprise savings, too!

For example, if you live on a higher floor, you may not need flood insurance, which can help you to keep more of your retirement funds in your pocket. So keep an eye out for those silver linings when you’re considering making a move.

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Author Details

Cat Lafuente

Cat Lafuente is a Florida-based writer and editor with extensive experience in digital and print content spaces. Her own personal finance journey — particularly consolidating debt and paying it off, in turn boosting her credit score and becoming a homeowner — inspired her to join the FinanceBuzz team; she hopes she can help others do the same.