Thinking about a condo in Old Town but not sure how it differs from a classic Key West cottage? You want the charm and walkability without surprise costs or red tape. In this guide, you’ll learn how condo ownership works in Florida, what HOA fees actually cover, how to spot reserve and assessment risks, what to know about insurance and flood, and the key documents to review before you make an offer. Let’s dive in.
What you actually own in a condo
When you buy a Florida condo, you typically own the interior of your unit as defined in the declaration, plus a shared interest in the common elements like the roof, exterior walls, walkways, and grounds. The association manages those shared elements under Florida’s Condominium Law. If you want the legal framework behind your rights and disclosures, review Florida Statutes Chapter 718.
Insurance is split. The association carries a master policy for the building’s common areas and structure. You carry an HO-6 policy for your interior finishes, personal property, loss-of-use, and loss assessment coverage. The fine print matters, so confirm what the master policy covers and what falls on you.
The association’s declaration, bylaws, and rules govern pets, rentals, architectural changes, and more. A board elected by owners sets the budget, manages reserves, and may levy special assessments for large projects.
Old Town buildings: what’s common here
Old Town offers a mix of small and historic buildings, which can feel very different from big resort-style condos:
- Small associations with 2 to 20 units, often carved from historic “conch” houses or duplexes.
- Historic conversions with unique layouts and older systems, which need steady upkeep.
- Boutique low-rise buildings with 2 to 4 stories and shared amenities like a pool or elevator.
- Mixed-use buildings where homes sit above street-level shops.
Local conditions matter. Many structures predate modern hurricane codes, and the salt air and humidity can accelerate wear on roofs, windows, metal, and HVAC equipment. That coastal charm is real, and so is the maintenance planning that comes with it.
HOA fees, reserves, and assessments
HOA fees vary in Old Town. Older buildings, pools, elevators, ocean exposure, on-site staff, and comprehensive insurance tend to increase costs. Smaller buildings may have lower steady fees but thinner reserves, which can mean more volatility if a big project hits.
What fees often cover:
- Common area maintenance like roofing, exterior paint, landscaping, and pool care
- Building and common-area insurance
- Shared utilities such as water, sewer, trash, and sometimes electricity
- Professional management, legal, and accounting
- Reserve contributions for capital repair and replacement
Reserves are your safety net for major work. A professional reserve study estimates remaining life and replacement costs for big-ticket items. In smaller associations, reserves are sometimes underfunded, which raises the chance of special assessments. Ask for the reserve study and funding plan, not just the monthly fee.
Special assessments fill gaps when reserves and the operating budget are not enough. Rules for approval come from the governing documents and state law. Always ask about pending or anticipated assessments and how they will be paid.
Insurance and flood in Key West
Insurance in the Keys is a category of its own. The association’s master policy carries deductibles that can be large for wind and hurricane claims. That’s why your HO-6 should include loss assessment coverage to help with your share of a master policy deductible after a covered loss. For insurance basics in Florida, see the Florida Office of Insurance Regulation’s consumer information.
Flood insurance is separate from standard property insurance and is often required by lenders. To understand flood risk at a specific address, check your zone on the FEMA Flood Map Service Center and learn coverage options through the National Flood Insurance Program at FloodSmart.gov. In low-lying or waterfront areas, premiums can be significant, so get quotes early in your search.
Financing and project approval
Many lenders review the entire condominium project, not just your unit. Small or mixed-use buildings, high investor ratios, pending litigation, or thin reserves can affect loan options like conventional, FHA, or VA. Get preapproved early and ask whether your lender needs a separate project review for the building you like. This helps you avoid surprises when you go under contract.
Rentals and local rules in Old Town
If you plan to rent, you need to confirm two sets of rules: association rules and city rules. Associations can restrict rental frequency, minimum lease terms, and the number of rentals. Separately, the City of Key West regulates short-term rentals and licensing. You can review the city’s requirements and preservation context in the City of Key West Code of Ordinances. Always verify current rules before you pursue a rental strategy.
Pre-offer due diligence checklist
Ask for these documents during your contract contingency period:
- Governing documents: declaration, articles, bylaws, and rules
- Current operating budget plus the last 2 to 3 years of budgets and financials
- Most recent reserve study and evidence of reserve funding
- Resale or estoppel certificate showing fees, balances, and assessments
- Board meeting minutes from the last 12 to 24 months
- Association insurance certificate with coverage details and deductibles
- List of current or planned special assessments and capital projects
- Litigation disclosures and any explanations
- Rental policy and any owner-occupancy or investor ratio rules
- Any inspection or engineering reports for roofs, structure, seawall, pilings, or elevators
Key questions for the seller, listing agent, or association:
- What major projects were completed, how were they funded, and what’s next on the horizon?
- Are there pending or expected special assessments? When and how will they be paid?
- Is the association current on insurance and taxes, and what is the wind or hurricane deductible?
- Any history of water intrusion, moisture, or termite treatment?
- How often are reserve studies done and are reserves fully or partially funded?
- How long does it take to get the resale package and what is the fee?
- Are short-term rentals allowed and are any city licenses tied to the unit?
Budget checklist before you offer
Estimate the full monthly and annual cost of ownership before you sign. At a minimum, plan for:
- Down payment and closing costs for your loan type
- HOA fee and exactly what it includes
- Utilities not covered by the HOA, such as electric or internet
- HO-6 unit-owner insurance with loss assessment coverage
- Flood insurance quotes for the specific address and elevation
- Property taxes and any municipal assessments, with local records available through the Monroe County Property Appraiser
- A contingency for special assessments. For older buildings in Old Town, a conservative early estimate is a one-time assessment in the low-to-mid five figures, though the real number depends on the building’s condition and plans
- Routine maintenance inside the unit, including moisture and HVAC care in the marine climate
- If you plan to rent, budget for licensing, business taxes, cleaning, and management
- Any association application or escrow requirements for buyer or tenant approval
Common risks and how to manage them
- Underfunded reserves. Mitigate by reviewing the reserve study, funding levels, and meeting minutes for planned projects.
- Large wind deductibles and loss assessments after storms. Mitigate with HO-6 loss assessment coverage and by confirming the association’s historical claims and coverage terms.
- Flood exposure and premiums. Mitigate by checking the flood zone, getting early quotes, and understanding lender requirements.
- Aging building systems in historic conversions. Mitigate by reviewing structural reports, roof age, and recent capital work.
- Financing hurdles. Mitigate by getting preapproval and confirming project eligibility early.
- Governance issues in small associations. Mitigate by reading minutes, understanding management structure, and assessing owner engagement.
What to expect when you go under contract
Florida has specific condo disclosure rules and timelines. You will receive association documents and a resale or estoppel certificate that shows current and pending fees, assessments, and any balances owed. Review everything against your checklist, ask follow-up questions, and align with your lender, inspector, and insurance agent while your contingencies are open. If the building is older, request available structural reports and consider additional inspections. For an overview of your rights and association duties, see Florida Statutes Chapter 718.
Ready to explore Old Town condos?
If you want historic charm with shared maintenance and walkable appeal, an Old Town condo can be a smart fit. The key is to vet the building, understand the budget, and plan for the coastal environment. When you are ready to compare specific buildings or review a resale package, reach out for tailored guidance and white-glove support from Stacy Stahl. You will get local insight, careful document review help, and a game plan that fits your goals.
FAQs
What does an HOA fee usually cover in Old Town condos?
- It often covers common area upkeep, building insurance, some shared utilities, management, and reserves, but always verify the exact inclusions in the current budget.
How do special assessments work in Florida condos?
- When reserves and the operating budget fall short for a major project, the board can levy a special assessment per the governing documents and state law, with payment schedules set by the association.
Do I need flood insurance for a Key West condo?
- If you finance, your lender may require flood insurance based on the flood zone; even if not required, you should check the FEMA Flood Map Service Center and get quotes.
Can I do short-term rentals in an Old Town condo?
- Only if both the association rules and the City of Key West’s regulations allow it, so confirm condo rules and review the City of Key West Code of Ordinances.
What is an HO-6 policy and why add loss assessment coverage?
- An HO-6 insures your unit’s interior and personal property; loss assessment coverage helps pay your share if the association’s master policy has a large deductible after a covered loss.
How do lenders evaluate a condo building in Florida?
- Many lenders perform a project review that looks at reserves, owner-occupancy, litigation, and building type, so get preapproved early and ask about project requirements for your target building.
