Eyeing a Kaanapali condo but unsure what the HOA fee really buys you? You are not alone. In resort communities, association dues can look high at first glance, and it is not always obvious what is included. This guide breaks down what Kaanapali condo AOAO fees typically cover, what they do not, and how to compare true monthly costs with confidence. Let’s dive in.
AOAO basics in Hawaii
In Hawaii, the term you will see most often is AOAO, which stands for Association of Apartment Owners. It functions much like an HOA in other states. The AOAO collects dues, maintains common elements, enforces the governing documents, and manages the building’s finances.
Most Kaanapali buildings are overseen by a board and professionally managed. As a buyer, you can and should review the AOAO’s budget, reserve study, meeting minutes, and master insurance declarations. These documents show how the association operates and where your dues go.
Why Kaanapali dues vary
Kaanapali is a resort area with many beachfront or near-beach properties. Buildings often have pools, multiple elevators, landscaped grounds, and on-site services. These features are part of the lifestyle and they increase operating costs.
Some complexes also support short-term rental activity. Rental program operations, staffing, and higher-use wear on systems can influence a building’s budget and reserve needs. When you compare dues, look at the amenity package and how the building operates, not just the monthly dollar amount.
What fees typically cover
Exact inclusions vary by building, but AOAO dues in Kaanapali often include:
- Master insurance for the building and common areas
- Common-area maintenance and repairs, such as roofs, exterior paint, elevators, pools, and landscaping
- Utilities for common areas, including lighting, pool equipment, and irrigation water
- On-site services and amenities like security or concierge, pool and fitness upkeep, and beach access maintenance points
- Professional management, accounting, and legal services
- Reserve fund contributions for major future repairs
- Common-area taxes or municipal fees where applicable
Some buildings also include cable TV or bulk internet in their dues. A few may include water or sewer for units, but that is not universal. Always confirm what is in and out for the building you are considering.
What fees usually do not cover
You should plan for owner-paid items beyond AOAO dues. These usually include:
- Interior repairs and maintenance inside your unit
- Your unit-owner (HO-6) insurance for personal property, interior improvements, and liability
- Property taxes on your individual unit and your mortgage payments
- Utilities billed to your unit, such as electricity, water if not included, cable or internet if not bulk-included
- Taxes tied to rental income if you choose to rent your unit
- Special assessments if the AOAO levies one for major work or shortfalls
Insurance realities after 2023
Since the 2023 Maui wildfires, insurance markets across the islands have seen higher premiums and tighter availability. Kaanapali is north of the area most affected, but island-wide repricing has increased master-policy costs for many associations. It has also influenced HO-6 policy pricing for owners. Expect AOAO budgets to reflect higher insurance expense and pay close attention to master policy deductibles and coverage limits when you review documents.
How to compare buildings
Comparing dues across Kaanapali condos is not apples to apples. Use a consistent method so you can weigh value and risk, not just price.
- Normalize the numbers
- Calculate dues per square foot: monthly dues divided by unit square footage.
- Note included services. If Building A includes water and Building B does not, add a reasonable water estimate to B for a fair comparison.
- Add your estimated HO-6 insurance and property tax to each option to see a closer picture of total monthly carrying cost.
- Review the financial health
- Reserves: Compare the reserve balance to what the reserve study recommends. Low reserves can lead to special assessments.
- Dues history: Look for a pattern of sharp or frequent increases.
- Delinquencies: A high percentage of unpaid dues can strain the budget and raise risk for assessments.
- Watch insurance exposure
- Check master policy limits and deductibles. Very high deductibles can shift more cost to owners after a major event.
- Identify any coverage gaps noted in the insurance declarations.
- Understand operations
- Read board meeting minutes for recurring issues, deferred maintenance, or upcoming projects.
- If you plan to rent, confirm the building’s rules and see how rental operations affect costs and wear.
Carrying-cost worksheet
Use this simple template to estimate your monthly cost beyond the mortgage:
- AOAO dues (monthly): $_____
- HO-6 insurance estimate (monthly): $_____
- Property tax share (annual tax divided by 12): $_____
- Unit utilities (electric, water if not included, cable or internet if not bulk-included): $_____
- Expected maintenance or HOA-related assessments (monthly average): $_____
Total estimated monthly carrying cost: $_____
This framework helps you compare value between a high-amenity resort complex and a simpler, lower-dues building.
Documents to request
Ask the listing agent or the building’s management for:
- Current annual budget and the most recent profit and loss statement
- Balance sheet showing operating cash and reserve balances
- Most recent reserve study and schedule of planned replacements
- Master insurance declarations, including coverage limits and deductibles
- CC&Rs, bylaws, and house rules
- Board meeting minutes from the past 6 to 12 months
- History of special assessments and the current dues delinquency rate
- Key vendor contracts and the management agreement, especially terms that escalate costs
- Any recent inspection or engineering reports
Red flags to watch
Be cautious if you see:
- Reserves well below recommended levels or no formal reserve study
- Frequent special assessments or large dues jumps beyond inflation trends
- High owner delinquency, which can strain cash flow
- Insurance gaps or unusually high deductibles that could be passed on to owners
- Ongoing litigation or unresolved major maintenance issues noted in minutes
Smart questions to ask
Use these questions to focus your due diligence:
- What exactly is included in monthly AOAO dues for this building?
- What is the current reserve balance versus the study’s recommended level?
- Have there been special assessments in the last five years, and are any planned?
- What is the master policy deductible and total coverage limit?
- What percentage of units are short-term rentals, and what are the rules?
- What is the current delinquency rate for dues?
Kaanapali buyer tips
- Consider the lifestyle value. Higher dues can make sense if they provide amenities and on-site services you will use.
- If you intend to rent, align your choice with the building’s rules and plan for taxes and added wear.
- Confirm responsibility for balconies or lanais. In some buildings the AOAO handles them; in others, owners do.
- Get local HO-6 quotes during your review period. Premiums can vary by unit location and exposure.
Putting it all together
Your goal is a clear view of value, risk, and fit. Kaanapali’s resort-style buildings often deliver exceptional amenities, but the right choice comes from comparing what dues include, how healthy the budget is, and how insurance, reserves, and operations affect long-term costs. When you organize the numbers and the documents, you can make a confident, lifestyle-aligned decision.
Ready to run the numbers on a specific Kaanapali condo or review an AOAO packet together? Reach out to schedule a walkthrough of the budget, reserves, and insurance details tailored to your short list. Connect with Kela Fernandez for a calm, thorough review and next steps.
FAQs
What do Kaanapali condo HOA fees usually include?
- Most dues cover master insurance, common-area maintenance, common utilities, reserve contributions, management, and upkeep of amenities, with exact items varying by building.
What costs are not covered by AOAO dues in Kaanapali?
- You typically pay for in-unit maintenance, HO-6 insurance, your unit’s property taxes, unit utilities, rental-related taxes, and any special assessments.
How did 2023 insurance changes affect Kaanapali condos?
- Island-wide premium increases have raised master-policy costs for many associations and influenced HO-6 pricing, so review coverage limits and deductibles closely.
How can I compare HOA fees across buildings fairly?
- Normalize dues per square foot, adjust for included services, add HO-6 and taxes, and review reserves, dues history, delinquency, and insurance deductibles to assess true cost.
Do AOAO fees include water, cable, or internet?
- Some buildings include bulk cable or internet, and a few include water; always check the budget to confirm what is included for your specific complex.
What documents should I review before buying a condo?
- Request the budget, reserve study, financials, insurance declarations, governing documents, recent board minutes, assessment history, and any inspection reports.
