Buying a St. Pete Beach condo is about more than the unit.
You're buying the unit, and you're also buying into the building's condition, its finances, its insurance, its rules and whether lenders will finance it.
Keller Williams St. Pete · Arrivato Homes
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The building matters as much as the unit.
A beautifully renovated unit can sit inside a building that's facing concrete restoration, a roof replacement, underfunded reserves, a large insurance deductible or a pending assessment. None of that shows up in listing photos.
The same logic applies to fees. A low HOA fee isn't automatically good, and a high one isn't automatically bad. What matters is what the association collects, what it saves, what it spends, and what obligations are still coming.
Milestone inspections
Florida requires milestone inspections for condominium and cooperative buildings that are three or more habitable stories. The first is due when the building reaches 30 years of age, or 25 years if the local building official decides local conditions warrant it, and then every 10 years.
- Phase one is a visual assessment by a licensed engineer or architect looking for substantial structural deterioration.
- Phase two is required only if phase one finds that deterioration. It can include destructive testing and ends with repair recommendations.
An inspection existing doesn't mean the building "passed." What matters is what was found, what was recommended, what's been fixed, and how the fixes are being paid for.
- Has the building completed its required milestone inspection?
- Was a phase two inspection required?
- What deficiencies were identified?
- What repairs were recommended, and have they been completed?
- How are the repairs being funded: reserves, an assessment, or a loan?
Structural Integrity Reserve Studies (SIRS)
A SIRS is a different document with a different job. Associations with buildings three or more habitable stories tall must have one every 10 years. It estimates how long major components will last, what they'll cost to replace, and how much the association should be saving each year.
| Milestone inspection | SIRS | |
|---|---|---|
| Question it answers | Is there substantial structural deterioration right now? | What will the major components cost to repair or replace, and is the association saving enough? |
| Prepared by | Licensed engineer or architect | Engineer, architect, or qualified reserve specialist / analyst |
| How often | At 30 years (or 25), then every 10 years | Every 10 years |
| What to read first | Findings, phase two status, repair recommendations | Recommended funding vs. what's actually funded |
Under current law, a SIRS must cover the roof, structural systems, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and other items over $25,000 that affect the building's structural integrity.
The SIRS number isn't enough
Look past the headline reserve figure:
- Which components were evaluated, and what useful life was assigned to each?
- What replacement costs were estimated, and have costs moved since?
- What's the reserve balance today?
- What annual funding is recommended, and what has the association actually adopted?
- Are large projects already underway?
Can the association afford the building?
The annual budget and financial statements show whether the fee matches the building's obligations. Read for:
- Operating budget: management, utilities, staff, maintenance and repairs
- Insurance cost and how it's changed
- Reserve contributions and reserve balances
- Legal expenses
- Association debt or lines of credit
- Delinquencies: how many owners are behind
The question isn't whether the fee is low or high. It's whether the association's finances fit what the building will need.
Special assessments
Assessments come in stages, and each one matters differently to a buyer:
- Existing assessments already being paid in installments
- Approved assessments not yet collected
- Proposed assessments discussed in board minutes
- Association loans repaid through the regular fee
Who pays what between buyer and seller depends on the contract. Read the board minutes for what's coming, and have the contract terms reviewed before you sign.
Two layers of insurance
- The association's master policy: property and wind coverage for the building, flood coverage where applicable, and the deductibles that come with them. A large wind deductible can become an assessment after a storm.
- Your HO-6 policy: covers your unit's interior and belongings. Loss-assessment coverage can help pay your share of an association assessment after a covered loss.
Lenders review the master policy too, so gaps in the association's coverage can affect financing as well as risk.
There are two approvals: you and the building.
You can qualify for a mortgage while the project itself doesn't meet a lender's or loan program's requirements. That's why condo financing surprises buyers who were pre-approved.
Conventional (Fannie Mae / Freddie Mac)
The lender reviews the project as well as you. Project review can look at building condition and critical repairs, insurance, assessments, delinquencies, commercial space and litigation. Requirements vary by loan, occupancy and project size.
Small projects
Under current Fannie Mae guidelines, project review is waived for some smaller projects (including 2–10 unit projects and detached units), though baseline requirements such as insurance still apply.
Portfolio loans
Some banks and credit unions keep loans rather than selling them, and set their own condo standards. Rates, down payment, reserves and terms can differ.
Non-warrantable financing
Specialty lenders sometimes finance projects that don't meet agency standards, usually on different terms. Availability isn't guaranteed.
FHA / VA
These programs have their own condo project approval rules. Not every building qualifies.
Cash
Removes the lender's project approval, but not the structural, assessment, insurance or reserve risk. Future buyers may still need financing when you sell.
Read the rules before they're your rules.
The declaration, articles, bylaws, rules and amendments set what you can and can't do. Florida's resale rules give buyers a short period to review the association documents after receiving them; ask for them as early as the contract allows.
Pets
Limits on number, size or type of pets, and whether tenants can have them.
Parking
Assigned or deeded spaces, guest parking, and rules on boats, trailers or work vehicles.
Renovations
Approval requirements, flooring and sound rules, allowed work hours, and contractor insurance requirements.
Who maintains what
Owner versus association responsibility for windows, sliders, balconies, plumbing lines and AC equipment. This affects both costs and insurance.
Approval to buy
Some associations require application and approval of new owners or tenants, with timelines that affect your closing date.
Can I rent it out?
Two sets of rules apply, and both have to allow what you're planning:
- The association: minimum lease length, number of leases per year, waiting periods after purchase, and tenant approval.
- The City of St. Pete Beach: short-term rentals are regulated by zoning district, so a building's location matters.
Association rules alone don't make a short-term rental legal. Check both before you count on rental income.
Major building components
For each one: current condition, age, recent work, upcoming work, and how it will be paid for.
