Staring at a Kihei condo listing and wondering why the HOA line is bigger than your electric bill? You are not alone. Understanding what Association of Apartment Owners (AOAO) fees actually cover will help you budget with confidence and compare buildings fairly. In this guide, you will learn what is usually included, typical fee ranges in Kihei, the main cost drivers, and which documents to request before you buy. Let’s dive in.
What HOA fees include
Common-area upkeep
Your monthly fee helps keep shared spaces clean, safe, and working. This usually includes building exterior care like roofing and painting, plus parking lots, walkways, elevators, lighting, gates, and entryways. You also help fund landscaping, irrigation, pools and spas, barbecue areas, fitness rooms, laundry rooms, and trash rooms. Routine janitorial service for halls and other shared areas is part of this bucket.
Utilities and services
Most associations cover water, sewer, and common-area electricity. Common-area trash or hauler fees are typically included as well. Sometimes fees cover domestic hot water, a portion of unit electricity where master-metered, or bulk cable and internet if the AOAO has a contract. Unit electricity and individually metered water are often owner-billed, and many owners subscribe to cable or internet on their own. Always verify exactly which utilities are AOAO-paid versus owner-paid.
Insurance basics
Your AOAO pays for a master insurance policy for the buildings and common elements, including liability per the policy declarations. In Hawaii, premiums and deductibles can be higher due to coastal wind and storm exposure, and many associations carry hurricane or wind coverage. As an owner, you will typically carry an HO-6 policy for interior finishes, personal property, and loss assessment coverage. Confirm what the master policy covers and what is excluded inside your walls.
Reserves and big-ticket repairs
A portion of your fee goes to reserves for future capital projects. This covers items like roof replacement, elevator upgrades, paving, re-plumbing, pool equipment, and other major repairs. A current reserve study guides how much the AOAO should set aside each month. Healthy reserves can help prevent frequent special assessments.
Management and administration
AOAOs often hire a professional management company. Fees also cover on-site staff, bookkeeping and accounting, tax preparation, legal services, board meeting expenses, postage, banking, and required permits and inspections. Examples include pool permits and elevator inspections.
Amenities and special charges
Communities with security, concierge, on-site rental management, or condo-hotel operations will reflect those costs in the budget. Some AOAOs include pest control or termite inspection, while others require owners to handle in-unit treatment. Oceanfront properties may budget for salt-air corrosion mitigation, shoreline or seawall care, and other coastal maintenance.
Typical Kihei fee ranges
Monthly HOA fees vary by age, amenities, location, and utility setup. Use these ranges to plan, then confirm for a specific building.
- Lower-cost, older, low-amenity complexes: about $300 to $700 per month. Drivers include fewer amenities, smaller reserves, limited staff, and fewer shared utilities.
- Mid-range buildings with pools, landscaping, and on-site management: about $600 to $1,200 per month. Drivers include larger reserve contributions, management fees, insurance costs, and more amenities.
- High-end or oceanfront, resort-style properties and condo-hotels: about $1,000 to $3,000+ per month. Drivers include extensive amenities, full-time staff, higher insurance and maintenance costs, rental management, and larger reserves.
Why fees vary
- Age and condition of the building. Older structures often need more maintenance and higher reserve funding.
- Amenities. Pools, spas, elevators, gyms, and lush landscaping add ongoing costs.
- Insurance and location. Oceanfront exposure can raise premiums and wind or hurricane deductibles.
- Reserve funding. A recent reserve study may recommend higher monthly contributions.
- Utility metering. Master-metered electricity or water can raise monthly HOA fees, while individually metered utilities may shift costs to owners.
- Short-term rentals. Vacation-rental activity increases wear and tear and administrative costs.
- Building size. Fewer units sharing fixed costs can push per-unit fees higher.
How to compare two Kihei condos
To compare buildings side by side, ask the seller, agent, or management for the full picture.
Documents to request
- Current association budget and the most recent operating statement
- Balance sheet and reserve account balances
- Most recent reserve study and funding plan
- Board meeting minutes for the past 12 to 24 months
- Declaration, bylaws, and house rules
- Short-term rental rules and any county enforcement history
- Master insurance certificate with limits, deductibles, and exclusions
- Management contract and major vendor agreements
- Litigation disclosures
- History of special assessments and any upcoming capital projects
- Unit entitlement schedule used to calculate assessments
Key red flags
- Thin or severely underfunded reserves, or no reserve study
- Frequent or large special assessments
- Master policy with very high deductibles or narrow coverage
- Active litigation or repeated owner complaints in the minutes
- Abrupt management turnover or overpriced vendor contracts
Smart questions to ask
- What exactly is included in the monthly fee, including utilities and insurance?
- How many months of operating expenses are in reserve and what percent funded are reserves?
- Are any special assessments planned? What capital projects are scheduled?
- Have there been insurance claims in the past five years? What are typical deductibles?
- Does the AOAO allow short-term rentals? Are there extra fees for rental units?
- Is electricity or water individually metered for this unit?
- Are there any pending lawsuits or lien actions against the association?
Quick monthly budget example
Use your building documents to replace these sample figures. This is for planning only.
- HOA fee (mid-range example): $850
- Electricity (owner-billed): $125
- Internet/cable (owner-billed): $85
- HO-6 insurance (owner): $35
- Property tax (owner, monthly estimate): $200
- Estimated monthly non-mortgage housing cost: $1,295
Special Maui considerations
- AOAO is the local term for condo associations in Hawaii, and governance follows Hawaii Revised Statutes, Chapter 514B, plus the association’s governing documents.
- The Hawaii Department of Commerce and Consumer Affairs (DCCA) provides guidance for buyers and owners, including budgeting, reserve studies, and owner rights.
- Maui County sets property tax rules and handles county services. Property taxes are assessed to individual owners, not typically included in HOA fees.
- Short-term rental rules at the county and state level affect buildings that allow vacation rentals, including added administration and tax compliance.
- Insurance premiums can be higher for coastal properties. Confirm master policy scope and deductibles and make sure your HO-6 includes loss assessment coverage.
- Hawaiian Electric provides power on Maui. Some buildings are moving toward individual metering to align costs with usage. Bulk internet or cable may be negotiated by some AOAOs, while others leave subscriptions to owners.
If you want help building a true apples-to-apples comparison of Kihei condos, I am here to guide you through budgets, documents, and value trade-offs. Let’s align the numbers with your lifestyle goals and timeline. Reach out to Jason Gilbert to get started.
FAQs
What utilities do Kihei condo HOA fees usually include?
- Often water, sewer, common-area electricity, and trash, with possible bulk internet or domestic hot water where arranged, while unit electricity is commonly owner-paid.
How does AOAO insurance interact with my HO-6 policy in Kihei?
- The AOAO master policy covers the building shell and common areas, while your HO-6 covers interiors, personal property, and loss assessments for AOAO deductibles.
What is a healthy reserve fund for a Kihei AOAO?
- Look for a recent reserve study and contributions that match it; a red flag is severely underfunded reserves or no study at all.
Do short-term rentals affect HOA fees in Kihei condos?
- Yes, vacation rentals can increase wear, cleaning, compliance, and insurance needs, which may raise operating costs or add fees.
Which documents should I review before buying a Kihei condo?
- Request the budget, operating statement, reserve study, minutes, insurance declarations, bylaws, management contract, litigation disclosures, and assessment history.
Are property taxes included in Kihei HOA fees?
- No, Maui County property taxes are assessed to individual owners and are typically not part of the AOAO fee.
