Are condo reserves helping or hurting demand in Marathon right now? If you are eyeing a waterfront escape or preparing to list your condo, the answer matters. New statewide inspection and reserve rules, plus tighter lender standards, are reshaping which buildings attract buyers and which ones struggle. In this guide, you will learn how the rules work in the Keys, how they affect pricing and financing, and what to review before you make a move. Let’s dive in.
What changed in Florida condo rules
Milestone inspections at 25–30 years
Florida now requires “milestone” structural inspections for residential buildings that are three or more stories. The baseline is 30 years, with follow-ups every 10 years, and a phased approach that can require deeper testing if issues show up. Review the details in Florida’s milestone inspection law.
Structural integrity reserve studies
Condo associations must complete structural-integrity reserve studies and fund reserves based on those findings. Budgets and disclosures tie back to the study’s recommendations, which means big repairs often lead to higher monthly dues or special assessments. You can read the reserve and study requirements in Florida’s structural‑integrity reserve study rules.
Marathon’s local timeline: BSIP
Monroe County has implemented the Building Safety Inspection Program. In the Keys, many three‑story buildings are treated as subject to milestone inspections at 25 years due to coastal conditions. The county sends certified notices, provides forms, and allows extension requests. Get the local criteria and process on the Monroe County Building Safety Inspection Program page.
Ongoing legislative adjustments
State leaders have continued to fine-tune rules after the initial post‑Surfside changes, including flexibility for how associations may fund repairs. The conversation balances safety and affordability, especially for residents on fixed incomes. See AP coverage of the statewide debate for context.
How reserves shape demand in Marathon
Carrying costs and special assessments
Inspections and reserve studies can reveal large near‑term repairs, such as waterproofing, roofing, or concrete restoration. Associations typically respond with higher monthly dues, special assessments, or association loans. Any of these raise the total cost of ownership, which can cool buyer demand.
Financing availability and project eligibility
After Surfside, the GSEs tightened condo project eligibility. Lenders now look closely at reserve studies, inspection reports, and insurance. If a project does not meet standards, buyers may not be able to use conforming loans, which shrinks the buyer pool. Review Fannie Mae project eligibility guidance to understand the review process.
Market backdrop in the Keys
Countywide data shows the market has cooled from the 2021–22 peak. A June 2025 snapshot reported a Monroe County median sold price around $930,072 and longer market times. In a softer market, buildings with large assessments or financing hurdles can feel extra pressure on pricing. See the county snapshot in the Monroe County market report.
Tourism and investor interest
Tourism remains a major economic driver in the Keys, which supports demand for condo units where vacation renting is allowed. You can see references to tourism’s impact in testimony highlighting tourism’s vital role in the Keys. In Marathon, investor appetite is tied to carrying costs, project eligibility for loans, and local short‑term rental rules.
What to check before you buy
Your pre‑offer checklist
- Milestone inspection report and any Phase 2 findings. Confirm the report is filed with local officials. Review Florida’s framework in the milestone inspection law.
- Structural‑integrity reserve study, current reserve balance, and the latest association budget. Requirements live in Florida’s reserve study statute.
- Board minutes for the past 12 months, recent audits or treasurer reports, and any notices of pending special assessments.
- Project eligibility status with your lender. Ask for an early check under Fannie Mae’s project eligibility guidance.
- Master insurance declarations page. Note wind and hurricane deductibles and any gaps.
- Short‑term rental rules. Confirm city licensing, minimum stays, and any association restrictions. Local coverage offers helpful context on Marathon vacation‑rental licensing and minimum‑stay rules.
Red flags that should slow you down
- A recent inspection documenting substantial structural deterioration without a funded repair plan.
- A reserve study that shows large near‑term expenses with a low reserve balance.
- Pending litigation or insurance issues that could affect financing or premiums.
- Reports from your lender that the building is not currently eligible for conforming loans.
Tips for sellers of Marathon condos
Lead with transparency
Buyers and lenders will ask for documents early, so share them upfront. Provide the milestone report, reserve study, current budget, board minutes, and special assessment disclosures. Clear, early transparency prevents late‑stage contract fallout.
Prepare for varied financing paths
If your project faces large repairs or does not meet GSE standards, some buyers may use cash or non‑conforming loans. Encourage buyers to secure project‑specific pre‑approvals to keep timelines on track.
Speak to investors clearly
If your association allows short‑term rentals, confirm license requirements, minimum stays, and any transfer rules with the city and your HOA. Having answers ready can expand your buyer pool among investors.
Smart ways to structure a deal
For buyers
- Use a financing contingency tied to project eligibility and insurance review.
- Add a document‑review contingency for the milestone report, reserve study, budget, and minutes.
- If near‑term assessments are expected, ask for a seller credit or an escrow holdback at closing.
For sellers
- Price with the reserve and inspection story in mind. If a study shows strong funding, feature it in your marketing.
- If repairs are upcoming, outline whether the board plans to use assessments, dues increases, or an association loan. Buyers value clarity.
Bottom line for Marathon condos
Inspections and reserve studies are here to stay in the Keys, and Monroe County’s BSIP accelerates timelines for many Marathon buildings. That shift influences carrying costs, loan availability, and resale value. With the market cooler than the recent peak, buildings with strong reserves and clean inspections stand out, while those facing major work may need sharper pricing and clear disclosures. If you want a calm, confident path to your next Keys move, local guidance makes all the difference.
Ready to evaluate a specific building or prep your condo for market? Reach out to Jen Davis for local insight, clear next steps, and optional post‑sale rental support through Island Breeze.
FAQs
What are milestone inspections for Florida condos?
- Milestone inspections are required structural reviews for three‑story or taller buildings, starting at 30 years in most places and often 25 years in the Keys due to coastal conditions, with follow‑ups every 10 years. See the state milestone inspection law and Monroe County’s BSIP overview.
How do condo reserves affect my mortgage in Marathon?
- Lenders review reserve studies, budgets, insurance, and inspection reports. If a project does not meet eligibility standards, conventional conforming loans may not be available, which limits options for buyers. Review Fannie Mae’s project eligibility guidance and ask your lender to verify a building early.
What should investor buyers know about short‑term rentals in Marathon condos?
- Marathon enforces licensing, minimum stays, and fire inspections, and associations may add their own restrictions. Check city licensing and HOA rules before you buy. Local coverage explains the program and minimum‑stay framework in this rundown of Marathon’s vacation‑rental rules.
Is the Marathon condo market cooling and why does that matter?
- County data shows a cooler market compared with 2021–22, with a mid‑2025 median around $930,072 and longer market times. Softer conditions magnify the impact of assessments and financing limits on pricing and days on market. See the Monroe County market snapshot.
What documents should I request before I buy a Marathon condo?
- Ask for the milestone inspection report, structural‑integrity reserve study, current reserves and budget, 12 months of board minutes, the master insurance declarations page, and any notices of special assessments or litigation. Confirm project eligibility with your lender early.
