How Much Should Your Building Have in Reserves? A Building-Age Breakdown
The same reserve funding percentage means something very different depending on how old the building is.
Written by Jason Bishop, Florida Licensed Real Estate Agent (#3522603)
Why Age Changes the Picture
Our Condo Reserves guide covers what reserve funding percentages mean in general. But a 50% funded reserve on a 3-year-old building and a 50% funded reserve on a 35-year-old building are not the same risk — the older building has far less runway before major components actually need repair or replacement.
Rough Benchmarks by Building Age
| Building Age | What to Expect | What Should Concern You |
|---|---|---|
| 0–5 years | Lower reserve balances are normal — little has worn out yet, and a SIRS may not be due yet | Developer-controlled boards underfunding reserves from day one to keep HOA fees low at sale |
| 5–15 years | Reserves should be building steadily; first SIRS often falls in this window for taller buildings | A board that hasn’t adjusted contributions since the original developer budget |
| 15–30 years | Major components (roof, elevators, plumbing) are approaching or mid-replacement cycle; reserves should reflect real, funded numbers from a completed SIRS | Funding below roughly 50–70% of the SIRS-recommended balance |
| 30+ years | Structural components are at or past original design life; reserves should be close to fully funded against current SIRS figures | Any funding meaningfully below 100%, or a SIRS that’s overdue or incomplete |
These are general benchmarks, not guarantees — always check the building’s actual SIRS and reserve study rather than relying on age alone.
Key Things to Know
- ✓A newer building with lower reserves isn’t automatically a red flag — check what the SIRS actually requires, not just the dollar amount saved.
- ✓An older building with the same funding percentage as a newer one is carrying more real risk, since major components are closer to needing replacement.
- ✓Ask when the building’s most recent SIRS was completed relative to its age — a 25-year-old building that’s never had one is a bigger concern than its reserve balance alone would suggest.
Common Mistakes Buyers Make
- ⚠️Comparing reserve funding percentages across buildings of very different ages as if they mean the same thing.
- ⚠️Assuming a brand-new building has no reserve risk simply because it’s new.
- ⚠️Not asking how a building’s reserve contribution has changed since the SIRS requirements tightened after Surfside.
Frequently Asked Questions
Is a new building’s low reserve balance a red flag?
Not by itself — newer buildings naturally have less accumulated reserve need. Compare against the SIRS-recommended balance, not just the raw dollar figure.
What reserve funding percentage should an older building have?
Generally, the closer to 100% of the current SIRS figures, the better — older buildings have less time before major components actually need work.
Does building age affect how lenders view reserves?
Indirectly — lenders review the condo questionnaire and reserve figures regardless of age, but older buildings with weak reserves are more likely to trigger financing concerns.
Why It Matters
A reserve funding percentage only means something in context. Always weigh it against the building’s age and its most recent SIRS findings before deciding what it’s telling you.
Related Reading
Start with the full Condo Reserves guide, and see how funding levels connect to a building’s SIRS and our SIRS report red flags guide. Underfunded reserves are one of the most common paths to a special assessment, and often show up in your HOA fees. Our condo questionnaires guide covers how to request this documentation directly.
Comparing Buildings by Age and Reserves?
Send me the buildings you’re considering and I’ll help you compare their reserve health.
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