We are qualified and experienced in preparing reserve fund studies and periodic updates for all types of condo projects including mixed and phased developments, as mandated by Alberta’s Condominium Property Act.
A reserve fund study or depreciation report is a long-range financial plan for condo corporations. A reserve fund study looks at common property and includes a physical inventory, condition assessment and replacement costs of things like the roof, exterior walls, landscaping and pavement.
Reserve fund studies or depreciation reports:
- Are required by law every five years
- Identify projected costs to repair or replace building components
- Assess whether there are adequate funds to handle these repairs
- Include a financial plan to cover repair expenses
- Help predict and protect a property’s value
In layman’s terms, a reserve fund study is a report that helps condo corporations understand what they own, how much money they have, when renovations or replacements will be needed, future costs, and how to pay for renovations, replacements or improvements when they are due.
The health of a reserve fund directly affects a condo corporation’s purchasing decisions, in part because reserve fund studies help predict, and by extension protect, a property’s value.