Does a Condo Have to Have Reserves?
Which Florida buildings must fund reserves, which can still waive them, and what it means for buyers.
THE SHORT ANSWER
In Florida, almost always. Buildings three or more habitable stories tall must fund reserves for their structural components, and owners can’t vote to waive them. Smaller buildings also have to include reserves in their budget, but their owners can vote to waive or reduce them.
What Reserves Actually Are
Reserves are savings the association builds up from your monthly dues. They pay for big, predictable repairs like a roof, elevators, waterproofing, or painting, so owners don’t get hit with a large bill all at once.
Which Buildings Must Have Them
| 3+ habitable stories | Smaller buildings | |
|---|---|---|
| Structural study (SIRS) required | Yes | No |
| Reserves required in budget | Yes | Yes |
| Owners can vote to waive | No, not for structural items | Yes, by majority vote |
| If reserves fall short | Special assessment, loan, or line of credit, with owner approval | Special assessment or higher dues |
Most Miami Beach and Brickell high-rises fall in the first column.
What Happens When Reserves Run Low
When a building hasn’t saved enough, the money still has to come from somewhere. That usually means a special assessment, a loan, or a jump in monthly dues, and buyers inherit whichever one the board picks. Our Condo Reserves guide breaks down the risks of buying a Florida condo with low reserves in detail.
How to Check a Building’s Reserves Before You Buy
- ✓Financial statements: compare the reserve balance to what the building’s reserve study says it should have.
- ✓SIRS report: see which structural items are coming due and whether the money is set aside. Our SIRS red flags guide shows what to look for.
- ✓Condo questionnaire: lenders ask about reserves, and the answers can affect your financing.
- ✓Board meeting minutes: talk of loans or assessments usually shows up here first.
Frequently Asked Questions
Can owners vote to skip reserves?
Only in buildings under three habitable stories, and only for non-structural items. Larger buildings can no longer waive structural reserves.
Do low reserves affect my mortgage?
They can. Starting January 4, 2027, Fannie Mae will require buildings to budget at least 15% of their income toward reserves, up from 10%. Buildings that fall short may be harder to finance. See Fannie Mae’s new 2026 condo rules.
Is a building with high reserves always safe?
Not necessarily. What matters is whether the reserves match what the reserve study says the building needs. Our building-age reserve breakdown shows typical benchmarks.
Related Reading
Start with the full Condo Reserves guide, then see how much your building should have in reserves by age. Learn how to spot trouble in a SIRS report, how special assessments work, how to read a building’s financial statements, and what Fannie Mae’s 2026 rules mean for financing.
Looking at a Building and Not Sure About Its Reserves?
Read the full Condo Reserves guide, or send me the building and I’ll help you check its reserve health before you make an offer.
Read the Condo Reserves Guide Contact Jason
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