UNDERSTANDING CONDO ASSESSMENTS IN ORANGE BEACH
By Meredith Amon, Licensed in Alabama and Florida
Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Amon.
When you own a condo in Orange Beach, you quickly realize that assessments are part of coastal property ownership. Living on the water offers incredible beauty, but buildings are exposed to salt air, wind, and storms, which means major components — like roofs, windows, and concrete — eventually need repair or replacement.
I recently reviewed an assessment at a local condo building where the roof was due for replacement. The engineering report confirmed it had reached the end of its useful life, and the board voted to move forward with a project that totaled just over $1.1 million.
What’s important to understand is that assessments aren’t billed equally across all owners. Instead, they are calculated by unit size and stack location within the building. In this example:
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Smaller two-bedroom units carried an assessment around $8,000–$9,000.
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Larger three-bedroom corner units were assessed closer to $11,000–$13,000.
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Even the commercial unit in the building had its own line item, though at a much lower rate.
This means two neighbors in the same building can have very different financial responsibilities for the same project. The formula is tied to percentage ownership as recorded in the condo documents, and typically, the bigger your condo, the higher your share of costs.
Timelines and Payments
In this case, the project was scheduled over several months, with construction beginning in the late fall and extending through winter. Owners were billed ahead of the project and given a firm due date to pay their share in full. Some condo associations allow payment plans, but many — especially for large projects — require lump-sum payment.
It’s also worth noting that boards often aim to balance assessments with reserves. In this example, after funding the roof project, the association still maintained a healthy reserve account of about $1 million to cover future needs.
What Buyers Should Know
If you’re considering buying a condo in Orange Beach, here are a few tips I share with clients:
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Always review board meeting minutes and financial statements. These documents reveal upcoming projects that could result in assessments.
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Ask about reserves. A strong reserve fund can reduce the likelihood of special assessments.
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Understand your unit’s percentage ownership. This determines how much you’ll pay when assessments arise.
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Be aware of timing. If an assessment is approved before closing, the seller is typically responsible. If it’s approved after, you may inherit the cost.
Final Thoughts
Assessments aren’t fun to pay, but they’re part of ensuring condo buildings remain safe, structurally sound, and competitive in the marketplace. Upgrades like new roofs, windows, or major structural repairs often enhance property values and protect your long-term investment.
Living in a condo on the Gulf Coast is about balancing the enjoyment of a coastal lifestyle with the realities of responsible ownership. Understanding assessments — and planning for them — helps ensure a smooth experience whether you’re buying, selling, or already living in one of Orange Beach’s beautiful waterfront buildings.
If you’d like more information about buying or selling a condo in Orange Beach — or details on how assessments may impact your decision — I’d be happy to walk you through it.
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