14 questions to ask before you buy a home in a retirement community

Ask these 14 important questions before you commit to purchasing a home in a Florida retirement community:

1. Will I own the home, or is this a lease community?

The answer to this question may seem obvious, but when it comes to retirement communities in Florida, there are multiple options ranging from small rental apartments to spacious single-family homes and much more in between. You may want to cash out the equity in your home to purchase your retirement property, or you may prefer the flexibility of renting if you plan on being a snowbird or traveling around the world. More than half of top agents surveyed by HomeLight predict that retirees will put their homes up for sale and downsize when they make their next move. Even though you’re an empty nester, you may not be ready to part with all of your prized possessions, so evaluate square footage and floor plans to make sure they meet your needs.

Some communities have a land-lease structure in which you purchase the house, but lease the home site. This arrangement may eliminate or lower property taxes, but you’ll incur monthly bills for the property lease, water, sewer, trash removal, and amenities.

2. What is included in your monthly payment?

It’s important to find out all the costs of living in the community, in addition to the monthly rent or mortgage payment, to evaluate if they fit into your budget. While you might be enamored with the state-of-the-art clubhouse, fitness center, and social events, ask yourself if you will take advantage of all the amenities the community offers. Many retirees intend to utilize these facilities, but they often do not give serious thought to whether pricey fees are worth the money.

Consider the following costs as well as the sales price or rent:

• Monthly HOA, CDD, or other community fees and what services they include
• Closing and other transactional costs
• Entrance or buy-in fees
• Cost of living in the area
• Property taxes including any reductions or exemptions for seniors
• Landscaping and pool maintenance
• Shuttle service and admission to restaurants, classes, clubs, spas, or other amenities located on the premises

3. What are the community rules?

Most active adult communities in Florida have a set of rules that must be followed. As a homeowner, you’ve had the freedom to do things your own way, so review the regulations and decide if you will be comfortable abiding by them. These might include:

• Restrictions for visiting children, grandchildren, and other guests, such as how many visitors allowed, length of time, and use of facilities
• Pet policies including number permitted, types, breeds, and sizes
• Parking regulations such as number of cars, location, space for RVs or boats
• Dress codes in public areas
• Renting limitations or restrictions
• Regulations for home renovations, improvements, and exterior paint color
• Lawn/landscaping maintenance enforcement
• Noise parameters including daytime and nighttime decibel allowances

4. What are your new neighbors like?

Having good neighbors with similar interests and views has a significant impact on your quality of life, especially when you retire. If possible, attend a few community events and get to know some of the residents so you’ll discover what it’s like to live there. Many retirement communities provide opportunities for socialization like book clubs, art classes, and fitness programs, so you’ll want to see if your interests align with the activities that are offered. Knowing what life is like in the neighborhood will help you make the all-important decision of where to spend your retirement.

5. What plans are there for the adjacent property?

This is a critical question for newly constructed retirement communities because the breathtaking ocean view that attracted you to the property could be obscured by a strip mall or high-rise building if neighboring areas are developed.

You should also look into plans for vacant land near established communities to avoid traffic and congestion that might come with future development. Are adjacent properties zoned for residential housing, or will a regional airport be constructed? The answer could greatly impact your home’s value and appeal.

6. What type of assessments have been made?

Assessments can be expected for any community, but for seniors living on a fixed income, it’s vital to know what improvements or repairs have recently been completed and what assessments are anticipated for the near future. You want to avoid surprises like additional fees for a new pool or clubhouse when you’re trying to balance your budget each month. Since property taxes differ depending on the community’s location, take note of the cost and whether they have a history of soaring upward.

7. Is the community financially sound?

You will want to know if the developer and association are on solid financial ground before committing to purchasing or leasing a home. Since these parties are typically responsible for maintenance and amenities, it’s as important to ensure their solvency as it is to make sure the community is suited to the lifestyle you want to lead during your retirement. Ask to look at annual budgets or financial statements to determine the ability to handle an unexpected emergency such as fire or flood.

8. Is the community able to keep up with future growth?

Your due diligence should include finding out if there is sufficient infrastructure in place, careful planning, and ample space to allow for future expansion while maintaining the community’s relaxing ambience. What are the long-range plans to repair and replace critical infrastructure such as water lines or neighborhood streets? Find out whether the community or local municipality is responsible for making decisions about these items and paying for their costs.

9. Is there a reserve fund for maintenance?

Also known as a sinking fund, this is a financial safety net for major items in the community that deteriorate over time, such as replacing the clubhouse’s air conditioning system or unexpected expenses like new fitness center equipment if flooding occurs after a storm. Without an adequate fund to cover these costs, you could face huge unanticipated assessments when critical systems break down or unforeseen events occur.

10. What other projects belong to this developer?

Research the builder to find out how long the company has been in business and if they developed similar communities in other locations. If they’ve demonstrated the ability to drive up property values for other communities, they’ll likely do the same for your prospective  neighborhood. But you may want to keep searching for your future retirement home if you discover serious problems with their previous projects. Ask for references and do your homework to find out about the developer’s reputation. How were issues resolved and complaints handled?

11. Is the governing association easy to work with?

Look for a community board with a proven track record of working together and finding solutions. Find out if board members are competent, effective, and civil. A dysfunctional board led by power-hungry or inept individuals may prove to be the cause of great angst and can harm the unity of the entire housing complex.

Ask a number of residents about their experiences with board members and how issues were resolved. Read past minutes and attend an association meeting to form your own impressions. Check with your real estate agent about the opinions of other clients who moved into the community. Research the neighborhood association or HOA with online resources such as the Community Associations Network.

12. What security measures does the community have?

Safety is of critical concern to seniors, so evaluate the security systems in place, such as video surveillance and procedures for visitors. Find out if communities are gated or guarded and how emergency situations are handled.

13. What is the resale value of properties in the community?

Although you may plan on spending your sunset years enjoying all the amenities of an active retirement community, you can’t control what life has in store. You may need to move closer to family or into an assisted living facility if your health declines. Ask your real estate agent about the projected resale value and check HOA rules for restrictions on for-sale signs. Some communities have their own sales offices and prohibit hiring an outside agent. Keep in mind that new construction is the main competition for retirement homes, so it might be harder to sell if developments continually materialize all over town. Does the community have a right of first refusal, or can you rent out the property if necessary?

14. What lifestyles are accommodated?

With such a wide range of retirement options to choose from, you will want to decide if an active community of younger seniors will meet your needs or if you would like to live in a continuing care retirement community (CCRC) with assisted living or memory care available if your needs change. Do you prefer the privacy of a single-family residence or the camaraderie of others by living in a unit within a larger building? What features are critical such as handicap or golf cart accessibility?