August 17, 2026 · 4 min read
Condos have long been an accessible way into the Suncoast rental market, from bayfront buildings in Sarasota to island units on Longboat Key and Anna Maria. Since 2022, though, Florida has substantially changed how condominium associations inspect their buildings and fund their reserves, with further revisions in 2024 and 2025. For investors, those rules affect monthly dues, the likelihood of special assessments, and how easily a unit can be financed and resold. Here is a general overview of what changed and how to factor it into an investment decision.
Milestone Inspections for Older Buildings
Condominium and cooperative buildings three habitable stories or more in height now require a milestone inspection by a licensed architect or engineer, generally by December 31 of the year the building reaches 30 years of age and every 10 years after that. Local officials may require the first inspection at 25 years for buildings near salt water. The inspection begins with a visual examination, and if substantial structural deterioration is found, a more detailed second phase follows. The association must share a summary of the report with unit owners, and repairs identified in a second-phase report generally must be started within a set timeframe.
Structural Integrity Reserve Studies
Buildings three habitable stories or higher must also have a structural integrity reserve study, or SIRS, at least every 10 years, and existing owner-controlled associations were generally required to complete their first one by the end of 2025. The study covers major components such as the roof, structure, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, and windows and exterior doors, along with other high-cost items above a threshold set in the statute. It estimates each item's remaining useful life and replacement cost and recommends an annual reserve amount.
The bigger change is that owners can no longer vote to waive or reduce reserves for these items, or to spend those reserves on other purposes. Associations that had kept dues low by waiving reserves have generally had to increase contributions or turn to special assessments or loans. The 2025 changes added some flexibility, including the ability to temporarily pause or reduce reserve contributions for up to two annual budgets in certain circumstances tied to milestone inspection repairs, and to use lines of credit or loans for required work.
What It Means for Investors
For a rental investor, the association's budget now matters as much as the unit itself. Higher reserve contributions show up directly in monthly dues, which reduces cash flow, and a building with large deferred repairs may be heading toward a special assessment. Financing matters too: Fannie Mae, for example, treats condo projects in need of critical repairs as ineligible, which can limit a future buyer's loan options and affect your exit strategy. When you run the numbers, use realistic dues projections rather than this year's figure alone. For a refresher on the math, see our earlier post on cap rate and cash flow for Suncoast rentals.
Questions to Ask Before You Buy
Florida law requires a seller of a resale condo to give the buyer key documents, including the association's budget and financial statement, the milestone inspection summary if one applies, and the most recent SIRS or a statement that one has not been completed, and buyers generally have a limited window to cancel after receiving them. Use that window to get clear answers on a few points.
- When the milestone inspection is due or was completed
- Whether the SIRS is complete and reserves are funded as required
- Any planned or recent special assessments
- Any line of credit or loan the association has taken on
- Rental restrictions, minimum lease terms, and tenant approval rules
- How dues have changed over the past few years
Note: This overview describes Florida's condominium safety and reserve requirements at a general level as of this writing. These laws have been amended several times since 2022 and may change again, and how they apply depends on each building, so consult a Florida real estate attorney and a CPA before making an investment decision.
If you are evaluating a condo as a rental, our investor services can help you compare buildings, and a rental analysis can help estimate what a unit might rent for. Contact us to start the conversation.