Shopping for a condo on Anna Maria Island and wondering why fees vary so much from building to building? You are not alone. Between reserve funding, structural studies, and insurance, two similar-looking condos can carry very different long‑term costs. In this guide, you will learn what Florida condo reserves are, how they affect your monthly fees and assessment risk, and the exact documents to review before you buy. Let’s dive in.
Why reserves matter on AMI
Reserves are funds a condo association sets aside for big, predictable projects like roofs, exterior painting, elevators, plumbing risers, parking, and seawalls. A recent, professional reserve study inventories those components, estimates useful life and cost, and recommends a yearly funding plan.
Here is why this matters to you. Low reserve contributions can make fees look attractive today, but they often raise the chance of a future special assessment or sharp fee increases. Buildings with current reserve studies and steady contributions typically see more predictable costs and fewer surprises.
On barrier islands like Anna Maria, salt air, storms, and shoreline systems add wear. When associations plan reserves well and follow their study, owners usually face fewer emergency assessments and have clearer visibility into upcoming projects.
Florida rules in brief
Florida condominiums are governed by the Florida Condominium Act in Chapter 718 of the Florida Statutes. Association budgets must address reserves and meet specific financial reporting standards. After the 2021 Surfside tragedy, attention increased on building safety, timely inspections, and governance. Requirements can vary by city and county, so you should verify current rules with Manatee County and the island cities of Anna Maria, Holmes Beach, and Bradenton Beach.
State agencies you can consult include the Florida Department of Business and Professional Regulation for condo governance and the Florida Office of Insurance Regulation for wind and hurricane insurance frameworks. Local building departments maintain permits and inspection histories that can help you assess the property’s condition and maintenance record.
How reserves hit your budget
Your monthly fee covers day‑to‑day operations plus the board’s chosen reserve contribution. The association’s reserve posture often shows up in your bottom line in a few ways:
- Lower fees now can hide higher risk later if reserves are underfunded.
- Adequate reserves and a current study tend to reduce near‑term special assessment risk.
- Structural findings like concrete spalling, corrosion, or seawall failure can drive large, unplanned expenses if not anticipated in reserves.
Insurance and deductibles
Florida coastal condos carry master property insurance and often require unit owners to hold HO‑6 coverage. High wind or hurricane deductibles shift more cost to the association and owners after a storm. Ask for the master policy summary and deductible schedule, and understand how deductibles would be allocated if a claim occurs. Flood exposure is also material, so confirm flood coverage against FEMA flood zone designations and lender requirements.
AMI buyer due diligence checklist
Request these documents from the seller, property manager, or association. Ask for digital copies early, and allow time to review them within your inspection period.
- Most recent approved budget, plus the prior 2 to 3 years’ budgets
- Year‑to‑date financials and current balance sheet, plus recent bank statements
- Most recent reserve study, any updates, and the board’s reserve funding policy
- Minutes of board and association meetings for the last 12 to 24 months
- Master insurance certificates and declarations page summaries, including wind and hurricane deductibles and any flood policies
- Structural or engineering reports, major maintenance contracts, invoices, and any open work orders
- Building permit history and inspection records for big projects like roofs, structural repairs, or seawalls
- Governing documents: declaration, bylaws, articles, rules, and any amendments that affect reserves or assessments
- Summary of any pending litigation or claims involving the association
- Rental rules and any short‑term rental limits
- Unit owner assessment history and delinquency summary
Who to contact locally
- Manatee County Building Department for permits and inspection history
- City of Anna Maria, City of Holmes Beach, and City of Bradenton Beach building and code offices for local records
- FEMA Flood Map Service Center for flood zone checks
- Manatee County Property Appraiser for building age and property details
- A Florida real estate attorney experienced with condos
- A structural engineer with coastal condo experience and a reserve study professional
Read the documents like a pro
Budget and financials
What to look for:
- Reserve contribution line and whether it matches the reserve study recommendation
- Operating versus reserve classification of expenses and transfers
- How recent large projects were funded, such as reserves, special assessments, or loans
- Delinquency rate and trends in operating costs
Red flags:
- No reserve line or a statement that reserves are not funded without a clear plan
- Low reserve balance relative to near‑term needs
- Frequent special assessments noted in recent minutes
- High accounts receivable or many delinquent owners
Reserve study
Key sections:
- Complete component list including roof, exterior painting, elevators, seawall, and building envelope
- Remaining useful life estimates and the 1 to 5 year timeline
- Funding plan, annual contribution, and assumptions for inflation and interest
- Percent funded metric and cash‑flow projection
Useful thresholds:
- There is no single legal target for percent funded, but many reserve professionals view 70 to 100 percent as healthy. Lower percentages, especially below 40 percent, often indicate increased risk of fee hikes or special assessments. Always weigh this metric against the building’s age and condition.
Red flags:
- No recent reserve study, especially if older than 2 to 5 years
- Major components missing or unrealistically low cost assumptions
- A study the board is not following, as seen in minutes or budgets
Minutes and meeting records
What to look for:
- Discussions of deferred maintenance, major projects, and any engineer or contractor engagements
- Votes on special assessments or loans, and timelines for planned work
- Mentions of insurance claims, lawsuits, or code enforcement actions
Red flags:
- Repeated delays in funding important projects
- Frequent board turnover or management changes
- Authorizing special assessments soon after adopting a written reserve plan
Structural and engineering reports
What to look for:
- Signs of concrete spalling, corrosion, settlement, or seawall distress
- Recommended repairs, cost ranges, and suggested timelines
- Whether immediate work is advised or if monitoring is acceptable
Red flags:
- Structural concerns without a financed plan to fix them
- Recent reports calling for expensive work that is not budgeted or scheduled
Insurance policies
What to verify:
- Master policy limits and whether they reflect replacement cost
- Wind and hurricane deductibles and how they would be allocated
- Flood insurance coverage for buildings and contents where exposure exists
Red flags:
- Large percentage deductibles that would lead to sizable owner assessments after a storm
- Coverage gaps in flood or wind where risk is known
AMI coastal factors to weigh
Local conditions can accelerate wear and raise costs. Keep these realities in mind as you compare buildings:
- Salt‑air corrosion can shorten the life of concrete, steel, and mechanical systems
- Seawall and shoreline protection projects are expensive and often require careful long‑term planning
- Flooding and storm surge exposure may drive insurance requirements and premiums
- High short‑term rental activity can increase wear on common areas and systems
- Older island buildings may face near‑term capital projects like roofs, envelope restoration, or plumbing risers
Compare buildings with a simple scorecard
To make apples‑to‑apples comparisons, create a quick rating for each building you are considering. Score each item 1 to 5, then compare totals.
- Percent funded and reserve trend
- Alignment between budgeted reserves and the study
- Near‑term projects in the next 1 to 5 years
- Structural findings and financing plan
- Insurance deductibles and potential owner exposure
- Delinquencies and overall financial stability
- Litigation or code enforcement issues
- Age of building and coastal systems, including seawalls
- Rental intensity and wear on common areas
If one building’s monthly fee is lower but it scores poorly on reserves, near‑term projects, or insurance exposure, the lower fee may not reflect your true long‑term cost.
Next steps for AMI buyers
- Request the full document set as soon as you go under contract, or even before you make an offer.
- Ask a Florida real estate attorney to review the governing documents, reserve funding requirements, and assessment authority.
- If structural issues are suspected, bring in a coastal structural engineer for a targeted review.
- Meet with the manager or board to clarify reserve policy, upcoming projects, and financing plans.
- Check permit and inspection histories with Manatee County and the island city where the building sits.
- Review FEMA flood zones and get early quotes for wind and flood insurance.
- Factor percent funded, recent or likely special assessments, and deductible exposure into your offer strategy.
When you focus on reserves, structural health, and insurance, you make a wiser purchase and protect your time on the island. If you want a second set of eyes on budgets, minutes, and reserve studies as you compare buildings, reach out to Linda Moore. Together, you can line up the right experts and move forward with confidence.
FAQs
What is a condo reserve and why should AMI buyers care?
- Reserves are funds set aside for big future projects like roofs, painting, elevators, and seawalls, and they determine whether your fees stay stable or if special assessments are likely.
How do Florida rules affect condo reserves and disclosures?
- Florida’s Condominium Act in Chapter 718 sets budget and financial reporting standards, including how associations present reserves to owners and buyers.
How recent should a reserve study be for an AMI condo?
- Many professionals recommend updates every 2 to 5 years, with more frequent reviews for older buildings or when conditions are changing.
What percent funded is considered healthy in a condo reserve?
- There is no legal cutoff, but many reserve professionals view 70 to 100 percent as healthy and lower percentages as higher risk, especially under 40 percent.
How do structural reports influence my assessment risk on AMI?
- Findings like concrete spalling or seawall issues can trigger large projects; if reserves are not prepared, special assessments or fee increases become more likely.
What insurance details should I review before buying a coastal condo?
- Confirm master policy limits, wind and hurricane deductibles, flood coverage, and how any deductibles would be allocated to owners after a claim.
