Buying a Condo in Tampa? Read This First: Milestone Inspections, Reserves, and Special Assessments Explained
Condo living in Tampa can be fantastic—walkable neighborhoods, low-maintenance lifestyles, and amenities you won’t find in most single-family homes. But Florida’s evolving condo laws and insurance landscape mean buyers need to read beyond the listing photos. If you’re considering Hyde Park, Channelside/Water Street, Harbour Island, Westshore, or Carrollwood condos, understanding milestone inspections, structural reserves, insurance, and special assessments is essential to protecting your budget and peace of mind.
This guide lays out what to ask, what to read, and how to spot a financially healthy association before you make an offer.
What Florida’s “Milestone” and “SIRS” Rules Mean for You
Florida now requires two key safeguards for many condo buildings:
Milestone Structural Inspections: Periodic, engineer-led evaluations of a building’s structural integrity once it reaches a certain age (and then at set intervals). Reports can trigger repairs and timelines.
Structural Integrity Reserve Study (SIRS): A formal study identifying critical building components (roof, structure, electrical, plumbing risers, fire safety systems, waterproofing, windows where applicable) and the required reserves to maintain or replace them. Many associations must fully fund these reserves going forward.
For buyers, this means future expenses are more predictable—but it also means assessments can occur when a building catches up on past underfunding or deferred maintenance. The goal isn’t to scare you—it's to help you evaluate risk and plan your monthly cash flow.
Documents You Must Review Before You Commit
Ask for these up front (your contract will provide a rescission window—use it):
Latest Milestone Inspection (and any prior reports) and the board’s response plan
SIRS (Structural Integrity Reserve Study) and the current reserve schedule
Most recent budget and year-to-date financials (income statement and balance sheet)
Reserve balance and any reserve waivers historically approved by owners
Board meeting minutes from the last 12–24 months (repairs, disputes, vendor issues show up here first)
Special assessment notices (current and contemplated), with payment timelines and remaining balances
Estoppel letter (confirms dues, assessments owed, violations, and transfer fees for the specific unit)
Master insurance certificate with coverages and deductibles (wind/hail, flood if applicable, ordinance & law, limits)
Rules & Regulations / Leasing Policy (minimum lease terms, wait periods, caps, pet rules, renovation limits)
If the seller or association can’t produce these promptly, that’s a signal to slow down.
How to Read the Numbers Like an Underwriter
Focus on four areas:
Reserves: Do the reserves align with the SIRS schedule, or is the association underfunded? Full funding reduces the likelihood of surprise assessments.
Operating Budget: Are dues realistic for the building’s age, amenities, and insurance premiums? An artificially low budget today often becomes next year’s assessment.
Insurance: In Florida, master policy changes can swing dues significantly. Confirm policy renewals, deductible levels, prior claims, and whether the association carries ordinance & law coverage for code upgrades.
Debt and Litigation: Large loans or active lawsuits can complicate financing and lead to higher costs. Ask whether the association holds debt for prior repairs and how that affects dues.
Red Flags That Deserve a Second Look
A recent or pending special assessment with vague scope or shifting timelines
Reserve waivers in past years despite an aging building
Water intrusion issues in minutes without a remediation plan
Postponed repairs that coincide with insurance premium hikes
Frequent board turnover, vendor disputes, or legal actions
A master policy with very high wind/flood deductibles and no clear plan for funding them if a storm hits
None of these are automatic deal-killers, but they demand pricing, negotiation, or timeline strategy.
Financing and Approval: Why Your Lender Cares
Condo loans hinge on the building being “warrantable” by Fannie Mae/Freddie Mac guidelines—or else you’ll need portfolio/non-QM financing with different rates/terms. Lenders review:
Budget, reserves, insurance, litigation, and occupancy ratios (owner-occupant vs. investor mix)
Deferred maintenance and structural findings from milestone reports
Special assessments and delinquency rates among owners
Have your lender and agent coordinate early questionnaire requests so you know whether the building meets guidelines before you spend money on appraisal and inspections.
Insurance for You vs. the Association
The master policy insures common elements and, in many buildings, the structural shell. As the unit owner, you’ll typically carry an HO-6 policy for interior build-out, personal property, loss of use, and liability. In waterfront or flood-zone buildings, ask whether the association carries flood coverage for the structure; you may still want an HO-6 flood endorsement for contents and interior finishes.
If the master deductible is high, confirm whether owners could be assessed to meet the deductible after a covered loss and whether your HO-6 offers loss assessment coverage (and at what limit).
Negotiation Moves That Work for Buyers
Inspection and document deadlines that give you enough time to evaluate SIRS, milestone reports, and minutes before your deposit becomes non-refundable
Targeted credits or price adjustments when a known assessment is due after closing
Seller payoff of any unit-specific assessment balance at closing (documented in the estoppel)
Insurance contingency if premiums or master policy changes materially affect your monthly cost
A clean, professional offer that includes a lender call to the listing agent and clear timelines stands out—especially in popular buildings.
When a Special Assessment Isn’t a Deal Breaker
Well-managed associations sometimes levy assessments to tackle necessary, long-term improvements: concrete restoration, plumbing risers, roof systems, waterproofing, elevators. If the scope is defined, the contractor is vetted, the financing plan is documented, and reserves will be healthy afterward, the assessment may increase the building’s value. Price accordingly, schedule your cash flow, and make sure you understand the calendar of work.
Questions to Ask the Property Manager or Board
What is the current reserve balance vs. the SIRS requirement?
What were the largest expenses in the past two years, and what’s planned next?
Are any major components (roof, waterproofing, elevators) within five years of replacement?
Have insurance premiums changed materially this year, and what’s budgeted for next year?
What is the delinquency rate among owners, and how is it trending?
Are there rental caps or minimum lease terms that could affect resale value?
Document responses in writing and keep them with your contract file.
The Bottom Line
In Tampa’s condo market, the best buys are in buildings that are transparent, properly insured, and consistently funded. Beautiful amenities matter—but budgets, reserves, and reports matter more. Read the documents, involve your lender early, and price the risk into your offer instead of discovering it after you move in.
If you want help evaluating a specific building, I’ll request the full doc set, coordinate with your lender, and give you a clear summary of monthly costs, near-term risks, and long-term value so your decision is confident and calm.
Fernanda Stucken — South Tampa Realtor
📧 contact@fernandastucken.com | 📞 (347) 216-6620
