Thinking about a sleek Kakaʻako high-rise or a quieter townhome in Kapolei, Mililani, or Ewa Beach? One of your biggest comparison points will be the monthly AOAO or HOA fee and what it actually covers. Getting this right can save you money and surprises over time. In this guide, you’ll learn what Oʻahu association fees typically include, what they do not, how high-rise condos differ from suburban townhomes, and how to review documents like a pro. Let’s dive in.
AOAO vs HOA on Oʻahu
AOAO stands for Association of Apartment Owners. In Hawaiʻi, this term is used for condominium associations and it functions like a condo HOA elsewhere. HOA is the broader term for planned communities, which can include townhomes and single-family neighborhoods with shared areas.
Fees exist to operate and maintain common elements, insure shared structures, pay for management, and build reserves for future repairs. Boards set fees through annual budgets and can raise fees or levy special assessments when needed. As a buyer, remember that monthly assessments are recurring and can increase over time.
Before you close, you should receive budgets, financial statements, meeting minutes, reserve studies, and insurance information. Reviewing these items helps you understand both current costs and potential changes ahead.
What fees usually cover
Common inclusions
- Common area maintenance and repairs, such as landscaping, exterior painting, parking lots, lighting, elevators, lobbies, and corridors.
- Building and structural insurance under a master policy that covers common areas and the building structure.
- Utilities for common areas, including electricity for lighting, elevators, and pool equipment. Some associations also include water, sewer, or trash for units.
- Management and administrative costs, including property management, on-site staff, accounting, and banking.
- Janitorial and custodial services for lobbies, hallways, and amenities.
- Amenity operations, such as pools, hot tubs, gyms, clubhouses, security systems, and concierge services.
- Reserve fund contributions for long-term capital items like roofs, elevators, paving, painting, siding, and major systems.
- Pest control or termite programs in some communities.
- Security and monitoring, such as on-site security, gate operations, patrols, and cameras.
Common exclusions
- Unit utilities billed to you directly. Electricity is often separate and gas varies. Whether water, sewer, and trash are included depends on the property, so ask.
- Interior maintenance and repairs, including finishes, appliances, fixtures, and in‑unit plumbing or electrical.
- Your personal insurance. Condo owners typically carry an HO‑6 policy for interior improvements, personal property, liability, and loss assessment coverage.
- Property taxes and mortgage payments.
- Interior upgrades or renovations within your unit.
Kakaʻako condos vs suburban townhomes
High-rise condos: what drives fees
High-rises in Kakaʻako, downtown Honolulu, and the Ala Moana corridor have more complex systems and amenities. Costs often reflect:
- Elevators, life-safety and fire systems, and extensive mechanical and HVAC.
- High-use amenities like gyms, pools, lobbies, concierge, and sometimes valet.
- Exterior glass and curtain wall maintenance and higher insurance premiums for taller buildings.
Many buildings include common-area utilities and a master insurance policy. Some also include water, sewer, and trash for units. Per-unit monthly fees are generally higher due to the building systems and services.
Suburban townhomes: what drives fees
Planned communities in Ewa Beach, Kapolei, and Mililani focus fees on exterior maintenance and neighborhood infrastructure. Costs often reflect:
- Roof and siding upkeep, exterior painting, and building envelope work.
- Private roads, drainage, landscaping, and irrigation.
- Community parks, pools, clubhouses, and recreation centers.
Monthly fees can be lower than in high-rises. That said, townhome associations may still need special assessments for major infrastructure repairs, such as road resurfacing or drainage projects.
Shared local cost factors
- Salt air and humidity accelerate corrosion and paint wear, increasing maintenance frequency.
- Tropical climate brings mold and termite risk, which can add inspections and pest programs.
- Labor and material costs in Hawaiʻi are often higher than the mainland, which affects repair and replacement budgets.
How to read the numbers
Documents to request
Ask for these before you finalize an offer so you can review the property’s financial health:
- Current budget and 2 to 3 years of financial statements.
- Reserve study and the current reserve fund balance.
- Board meeting minutes for the last 12 to 24 months.
- Declarations, bylaws, rules, and rental policy.
- Master insurance certificate with coverages and deductibles.
- List of current or planned assessments and any recent special assessments.
- Major vendor contracts if available, such as landscaping, security, elevator, and pool.
- Litigation disclosures for any pending or recent lawsuits.
- Maintenance logs for critical systems like elevators, roofs, or exterior coatings.
- Details on how utilities are billed to owners versus the association.
Smart questions to ask
- Which utilities are included in the monthly assessment?
- What is the reserve balance as a percentage of the recommended reserve?
- Have there been special assessments in the past five years? For what and how much?
- Are capital projects planned, such as roof work, exterior painting, or elevator overhauls?
- What is the policy on short-term rentals and leases?
- How are parking spaces assigned or sold, and are there fees for guest parking?
- Has the building completed recent safety, elevator, or structural compliance work?
Red flags to watch
- Low or negative reserve balances or an outdated reserve study.
- Large or repeated special assessments.
- Big gaps between budgeted and actual expenses.
- Ongoing litigation that could lead to large liabilities.
- Deferred maintenance called out in minutes or inspection reports.
Insurance basics
The master policy typically covers common areas and structural elements. It has a deductible and usually does not cover your interior finishes. Ask whether the policy is “all in” or “bare walls” for unit interiors.
Plan to carry an HO‑6 policy for interior improvements, personal property, liability, and loss assessment coverage. In coastal zones, confirm hurricane or wind coverage and whether flood coverage is in place or advisable.
Reserves in plain English
A reserve study projects when big items like roofs, elevators, or exterior coatings will need replacement, along with estimated costs. It also recommends annual contributions to keep reserves on track. Compare the study’s recommendations to the current funding schedule to see if the association is staying ahead of major work.
Budgeting and comparing properties
Create a simple side-by-side comparison for each property you are considering:
- Monthly assessment amount.
- Which utilities are included: water, sewer, trash, and common electric.
- Master insurance deductible and what the master policy covers.
- Reserve fund balance and date of the last reserve study.
- Any recent or pending special assessments with amounts and reasons.
- Amenities included, such as elevator, pool, gym, or concierge.
- Rental restrictions or owner-occupancy rules.
- Parking and storage details, including any extra fees.
- Any litigation or major structural projects underway.
Do not rely only on the posted monthly fee. Add irregular costs like planned assessments or projected increases noted in meeting minutes. A conservative approach is to add a 10 to 20 percent buffer to your housing budget for potential fee changes.
If you are comparing Kakaʻako to suburban townhomes, expect higher recurring fees in high-rises in exchange for urban amenities and services. For townhomes, confirm what exterior maintenance and road work are included and whether large infrastructure projects are coming.
Most lenders review HOA and AOAO financials. Poor reserves or large pending assessments can affect loan approval, so share association documents with your lender early.
Oʻahu-specific steps before closing
Use this checklist to stay organized:
- Review the current budget, 2 to 3 years of financials, reserve study and balance, 12 to 24 months of minutes, master insurance summary, bylaws and rules, and any assessments.
- Confirm which utilities are included and how the rest are billed.
- Ask about fee history and any planned increases.
- Get maintenance schedules and timelines for upcoming capital projects.
- Confirm rental rules and any registration or permits required by the association or the county for rental use.
- Discuss red flags with your lender or attorney, including large assessments, litigation, or inadequate reserves.
- Purchase an HO‑6 policy with loss assessment coverage and consider wind or flood endorsements as appropriate.
Ready to compare options across Oʻahu?
You deserve clear answers before you commit. If you are weighing a Kakaʻako high-rise against a Kapolei, Mililani, or Ewa Beach townhome, we can walk you through the budget, reserves, and long-term costs for each choice and build a clean side-by-side plan. For personalized guidance and a calm, organized process from first tour to closing, connect with Fran Magbual.
FAQs
What does an AOAO fee usually include for Oʻahu condos?
- It often covers common area maintenance, master insurance, common utilities, management, janitorial services, security, amenities, and reserve contributions.
Are utilities like water and trash included in Honolulu condo fees?
- It varies by building, so ask specifically which utilities are included and how any remaining services are billed to owners.
Why are Kakaʻako high-rise fees higher than many townhomes?
- High-rises have elevators, complex life-safety systems, more amenities, and higher insurance costs, which increase operating expenses per unit.
Do AOAO or HOA fees cover my interior unit repairs?
- Interior repairs and finishes are typically your responsibility unless the governing documents state otherwise, so you should budget for those costs.
What is a special assessment and should I expect one?
- A special assessment is a separate charge for shortfalls or major repairs; review minutes, reserve studies, and project plans to gauge the likelihood.
What insurance do I need if the building has a master policy?
- You typically need an HO‑6 policy to cover interior improvements, personal property, liability, and loss assessment coverage, plus wind or flood riders if appropriate.
How can I tell if an association’s reserves are healthy?
- Compare the reserve study’s recommended funding to the current reserve balance and contributions, and check for recent or frequent special assessments.