Ten Museum Park HOA Fees Increase About 36%

January 20, 2009 by Lucas Lechuga

Ten Museum Park

Earlier this afternoon, I confirmed with the management office of Ten Museum Park that a significant increase in the monthly homeowners association fee was approved towards the end of December.  The new monthly HOA fee, which is now in effect, increased from approximately 55 cents per square foot to approximately 75 cents per square foot.  This represents about a 36% increase in monthly dues for condos owners of Ten Museum Park.  This is something that potential buyers need to be aware of since I found only one or two listings in the MLS that stated the correct monthly HOA fee.

With the exception of Jade, Solaris at Brickell Bay and Emerald at Brickell, which have each been burdened with a high number of foreclosures, I can’t think of another major condo development in Miami built within the past decade that has such a high HOA fee.  Ten Museum Park is a boutique condo development with only 200 units, which may be where the problem lies.  Most of the new condo developments in Miami have over 400 units and can divide their monthly expenses among more condo owners.  While the overall monthly expenses for larger condo developments may be greater, my assumption is that the costs for condo expenses such as staff salaries, building insurance and maintenance of the condo building and amenities is proportionally much smaller.

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128 Comments on "Ten Museum Park HOA Fees Increase About 36%"


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Anonymous
Angel
7 years 8 months ago

Wow. This will surely put a hamper on sales.

Anonymous
Dover
7 years 8 months ago

Lucas – the HOA fees at One Bal Harbor were 90 cents per square foot when I was looking at this project in late 2007. Who knows what they are now. That meant that the HOA fees and taxes on a typical 2/2.5 condo were over $50,000.00 / year, a major factor in my deciding not to purchase (a good move, as it turns out).

Anonymous
Sharonephone
7 years 8 months ago

Seriously, how can people afford or justify this? Okay maybe gym fees would avg. $100 a month for 2, maintenance costs for a pool (if you owned one), and insurance costs… but who really cares about valet parking and some of the other amenities? I would love to buy a condo, but I can’t justify the HOA fees, and this borders on obnoxious!

Anonymous
Ernst
7 years 8 months ago

This is why I am deathly afraid of Miami condos… even one lands an awesome price on a unit you can still drown in HOA fees…

Anonymous
moretroops
7 years 8 months ago

Not to mention special assessments. Right now, the condo. system – the market itself – is broken in Miami. And it wont be fixed until prices fall another 30% and normal people with real jobs can afford to buy. Until then we’ll see this story repeat time and again. The system is broken.

Anonymous
AZ88
7 years 8 months ago

Another reason to buy a house…this kind of fee increase is insane.

Anonymous
Sal G
7 years 8 months ago
A big part of it is complete mismanagement! The mgt. companies are robbing people blind with gross inefficiency and general incompetence. They have less than zero skin in the game. They don’t have any real training and if they lose contract, no big deal they go on to next suckers. It is disgusting that board members are simply to busy or it is beneath them to closely oversee boards actions. If people on board are that busy, go get your ego blast elsewhere and let somebody who really wants to do some good and has time take charge. . ..… Read more »
Anonymous
AZ88
7 years 8 months ago

What about the units that went unsold in this project? Do you think the management is forcing the owners in the building to cover those costs? How exactly does that work?

Anonymous
AZ88
7 years 8 months ago

Lucas, do you know who the management company is? So proactive condo owners can make it a point not to have this company as manager of their building..

Anonymous
Mikey
7 years 8 months ago

Just like a dividend yielding stock that cuts the dividend overnight. Expect huge stock price declines.

Anonymous
Richard
7 years 8 months ago

Government has so many rules today its almost impossible to operate a condo without the dreadful management companies. One would think the management company should be able to save the condo with their contacts with insurance companies and service companies but its Miami so its probably cost plus fee to management. A condo in Hallandale had a $200.000 estimate to paint the building but the owners were assessed $800,000 after the 80 y/o boards members all got their cut.

Anonymous
Wild Bill
7 years 8 months ago

Any building which allows rentals will have to have a management company to deal with all extra burdens that go with rentals.

These already high HOA fees don’t include full reserves. The actual fees are higher with full reserves. At this point Miami condominiums are at the end of their ponzi scheme lifeline. You still have a few suckers supporting the system.

Anonymous
Mr Waverly
7 years 8 months ago
Wild Bill your right.. I believe there will be a big change coming with new management comapanies forming and Associations hiring thier own teams to self manage. We need managers who work for the best interest of the owners and not their Management compainies best interest. If a building is managed in a proactive fashion, like any other business cost should not increase by double digits yearly. The bottom line is key to health and value of that business or property. Homeowners Associations are getting screwed by South Florida Management Companies. I believe the near future will hold downsizing of… Read more »
Anonymous
900 fan
7 years 8 months ago

I believe the fees went up due to the spa opening shortly. I visited the building a week ago and they were running the alarms and smoke test for the spa. However 73 cents a foot is very high. The buildings need to start making everything a la carte. Ditch the bulk cable, valet services. Let the owners and tenants pay their own way.

Anonymous
gables
7 years 8 months ago

what is the deal with the spa at ten museum? do you get use for free, for discount or full price? other than for the developers sales pitch, what benefit does an end user get?

Anonymous
VR
7 years 8 months ago

what would happen if you just didn’t pay the HOA fees? i know they can usually put a lien on the apt, but if you don’t need to sell it, what can they do?

Anonymous
Condo Swindlers
7 years 8 months ago
An increase would be justifyable if the building was completed and delivered based upon all the promises that were sold by the real estate people, not to ention the reality that the Spa..the lavish spa that has not been completed even a year after it had been promised by developer is only a fraction of what it was supposed to be….oh the list goes on and on…Water wall??? outdoor cabanas?? Michael Capponi lounge…Common people get a clue you get nothing, Nada Zip….and what about the commercial spaces since there are no tennants how withh those fees be assessed?? For more… Read more »
Anonymous
The Ace
7 years 8 months ago

Let them eat cake.

The Smart Money

Anonymous
jcrimes
7 years 8 months ago

VR
for starters, foreclose on your ass.

Anonymous
Muir
7 years 8 months ago

“You know, I never feel comfortable on these sort of things. Victims? Don’t be melodramatic. Look down there. Tell me. Would you really feel any pity if one of those dots stopped moving forever? If I offered you twenty thousand pounds for every dot that stopped, would you really, old man, tell me to keep my money, or would you calculate how many dots you could afford to spare? Free of income tax, old man. Free of income tax – the only way you can save money nowadays. “

Anonymous
Jane Q. Renter
7 years 8 months ago
What is happening at Ten Museum Park just doesn’t seem right. Makes me realize how important an efficiently run HOA really is. I would not be a happy camper if I owned there. I’m sure a lot of the renters can expect a raise in rent when they renew as well. Question to all south Floridians out there. I have the option to continue to work in Miami OR start working in our downtown Fort Lauderdale office. While both cities are unique and offer a different lifestyle, I’m wondering what others think about living in downtown Fort Lauderdale. Also, what… Read more »
Anonymous
Muir
7 years 8 months ago

“I can’t see how downtown Miami real estate can provide a decent return anytime in the near future. ”

“I don’t think there will be a return journey, Mr. Frodo.”

Anonymous
gables
7 years 8 months ago

Since AJ has property in NYC, could you please provide some insight as to the HOA cost in buildings up north? more or less per sq ft than Miami?

Anonymous
Richard
7 years 8 months ago

what are these voter things on each post

Anonymous
kevin
7 years 8 months ago

What’s the highest HOA fee’s can go is there a cap?

Anonymous
7 years 8 months ago

I think the cap is set at infinity + 2. In all seriousness, there isn’t a cap. Property values will suffer as HOA fees increase. It’s up to the condo board or management company to control expenses.

Most of the luxury condo buildings in South Beach have HOA fees of around $1.00 per square foot. Much of that has to do, however, with the higher cost of insuring a condo building located on the beach.

Anonymous
jcrimes
7 years 8 months ago

Lucas
using that logic why would insurance on a brickell building right on the bay be any less then a sobe building? same concept, right? or for that matter, same flood zone?

i’m not surprised by this raise…in due time, all the new building on the mainland will be 60 cents or higher. TMP is an alright building…expect to see some major foreclosure action in the 2/2s with this increase. you’re mnt and taxes alone are coming close to what you can actually rent the place for going forward in this market.

Anonymous
Samson
7 years 8 months ago

Gables:

My HOA in Soho, NYC is $.40.

Anonymous
Samson
7 years 8 months ago

It’s called “common charges” in NYC and, true, we have no valet or spa or gym. Thank God.

Anonymous
DJ
7 years 8 months ago

I would imagine HOA fees in NYC are much lower on average than in Miami. No pool or fancy landscaping to maintain, no valet, much lower insurance, etc, etc.

Anonymous
Once Again
7 years 8 months ago
Unfortunaltey, it’s a BS sca..yess..there water bill, trash, common areas, insurance, electric commmon areas, maint, security, tc..but that doesnt add up when you’re fees are so high. My taxes and HOA is more than my mortgage!! I say al this needs to change the laws were written back then and need to be changed. All this BS valet, xtra staff needs to be cut. slashed. That’s it! It’s not worth it to me and I don’t use any of these amenities rarley. I could hire my own personal asssistant for the amount of HOA fees I pay. I think the… Read more »
Anonymous
Samson
7 years 8 months ago

I just Googled the subject and earned, to my surprise, that common charges average $1.22/sf for non-doorman buildings, $1.44/sf for doorman buildings and go up to $3/sf for super luxury buildings. One article said the days of $1/sf common charges are as long ago as the nickel candy bar.

Anonymous
Just an Observer
7 years 8 months ago

Hi Gables,

I live in a 700sq ft 1-bedroom near Union Square in New York…it’s a luxury building with full staff, doorman, roof terrace, gym ,etc. The HOA is $1.25 per sq ft.

Anonymous
Just an Observer
7 years 8 months ago

Also meant to say that in NY many buildings are co-ops and the HOA includes your property taxes…the $1.25 I quoted does included those taxes.

Anonymous
Samson
7 years 8 months ago

Just an Observer:

But if you’re referring to co-ops in NY (as opposed to condos), the HOA (“monthly maintenance charge”) also includes each owner’s share of the debt service on the underlying mortgage (on the building – as opposed to the mortgage on the unit/shares of the co-op) as well as its share of the property taxes on the building as a result of which we’re really not talking apples to apples with Miami’s HOA (which includes neither property taxes nor debt service on an underlying mortgage).

Anonymous
Just an Observer
7 years 8 months ago

Hi Samson,

Yes, exactly…that was my point in making clear that the $1.25 per sq ft I pay in NY (and that includes taxes for my co-op) is quite different from the typical condo HOA that would exist in Miami.

Anonymous
chris
7 years 8 months ago
Developers often set HOA fees extremely low. Low fees lure buyers, and more people qualify for mortgages. Once its handed over to the owners, they new management discovers the fees were way too low. There was no budget for reserves. The developer was paying for landscaping and personnel out his own budget. etc. etc. So then HOA is forced to raise fees and look like the bad guy. Developer will just say previous budget was an estimate and will be long gone. Happens all the time. Its hard to run a luxury high-rise building for $0.55 cents. After awhile, it… Read more »
Anonymous
Renter Tom
7 years 8 months ago

I wonder if they voted in reserves or not…..would seem really bad if they voted out reserves……. Nice to be a renter.

Anonymous
DAVID
7 years 8 months ago

I would guess that the most “probable” reason for the big increase is that there are not
enough of the 200 units occupied and paying the fee. That’s the risk with these new
buildings with lots of foreclosures/empty units.

Anonymous
Julian
7 years 8 months ago
My full service building in London (Resident controlled by a Board who own flats in a 2004 building but we have an external manager whom we control very tightly) runs at 32p per sq ft per month. We don’t really view things in the price per sq ft per month – but that’s what it works out at. We have 24 hr concierge, lifts (elevators) etc. There is no pool or spa. I cannot fathom how badly run, and how over the top the services provided are, to rack up the costs I read here. Does anyone have any concept… Read more »
Anonymous
StJames
7 years 8 months ago
On the question of property tax assessments, what is the tax appeal process like in Dade County? In the case of new buyer paying a much lower price, and who can present his closing documents to the assessor, does the County respond with a timely new assessment? Also I am reading your terminology about o1, 02 sight lines. What does this mean? As an outside observer perhaps interested in this market, there just doesn’t appear to be enough distressed foreclosure sales or serious short sales to effectively clear the market. You need real people living in these units even if… Read more »
Anonymous
AJ
7 years 8 months ago
Sup guys, enjoying my 85 degree wx on the beach. Not into major posting while I’m on vacation. Just skimmed through a lot of previous posts. gables, I pay 0.52 for SOBE 0.42 for downtown 1.22 for NYC co-op (includes taxes) with Pool, gym, doorman, concierge etc. 0.02 cents/sf for my overseas beach properties!(no insurance included) Miami buildings are like luxury hotels. They are higher to maintain and insure than NYC apts. That’s life. Just look for well managed buildings to buy. I completely agree with Mr. Waverly, throw the management companies out and self manage and save almost half… Read more »
Anonymous
Raffi
7 years 8 months ago

75c sq/ft is ridiculous, I mean absolutely ridiculous. The owners of these buildings that have these high HOA fees should really get together and figure out a way to cut costs and to get a new mgmt company. I know of some really high end buildings in the hallandale/hollywood area that have full service, exceptional amenities and they are paying 62c sq/ft. And this year the HOA went down, its all in the mgmt company. There is no logical reason that a run down building like TMP is charging that.

Anonymous
lara
7 years 8 months ago

Lucas,

would you please try to get the details on HOA fees. My understanding is that due to the spa opening they will allow the building to operate as a condo hotel which means that if someone comes for a week to take the number of spa treatments they will live in the building in furnished units and obviously charged almost like hotel fees. At least that was an idea from the very begining when the building was ready to open.

If they generate enough interest from the spa goes from other cities it might change the whole cash flow picture.

Anonymous
Mr Waverly
7 years 8 months ago

Most Miami high rise buildings average 60-70% occupancy, with many units used for second homes.
Look at the lights in most of these building, the higher the level of luxury the fewer the lights.
If these buildings were running at 100% full time occupancy how high would the monthly fees run?
Management Companies are scamming Association with added staff (and the premium paid on each employee).
A good self managed building, actually paying the Manager more with bonuses could probably trim 15-20% from the bottom line.

Anonymous
Renter Tom
7 years 8 months ago

Mr Waverly said: “Look at the lights in most of these building, the higher the level of luxury the fewer the lights.”

– So true….so true.

Anonymous
Marky Mark
7 years 8 months ago

75c is not cheap but it could be alot worse compared to some other buildings. The Bentley Bay on south beach has HOA at $1.039 per square foot.
The Emerald at Brickell has HOA at $1.15 per square foot.

Anonymous
7 years 8 months ago

74¢ @ The Mark

Includes valet. Most apts. have 1 space plus one right to “free” valet.

Anonymous
Wild Bill
7 years 8 months ago

Easiest guideline to judge if a building is well maintained is to check the elevator inspection sticker inside the cab. If it’s expired or missing the management and board are not doing their job. If it’s way past expiration the building might have a existing violation that has not been fixed. This will be in my book, Dummies Guide to Buying a Miami Condo.

Chapter Six: Low maintenance fees don’t mean anything. Especially is somebody brags about it on a blog. The building with the lowest fees most often has no reserve budget.

Anonymous
7 years 8 months ago

Reserve budget was fully used up @ T M in 05-07.

Regular reserves were accumulated in 08 and are built into 09 fees.

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