Reserve Fund Studies & Depreciation Reports
Our qualified team of reserve fund planners have the skill and experience to provide a quality Reserve Fund Study or Depreciation Report.
Condominium corporations are required to establish and maintain a reserve fund to ensure the costs of major repairs and/or replacements of the corporation’s common property are covered.
An on-site inspection of the property is completed, which includes taking a physical inventory of the corporations depreciating property (ex. windows, exterior, roof, pavement etc.). The current condition of the inventory is evaluated.
After the on-site inspection, the following steps are completed.
- Estimate the costs of repairs to or replacement of the depreciating property
- Estimate the effective age of the depreciating property
- Complete a financial evaluation
- Determine the current (if any) amount of funds in a reserve account and recommend the amount of funds that should be in the account in order to maintain the depreciating property
- Create cash flow models which consider the starting balance of the reserve fund, interest and inflation rates, and expenses for the depreciating property over a 30-year span
Benefits of a Reserve Fund Study:
- The condo corporation can make decisions with predicted expenses in mind
- Reduced likelihood of special assessments
- Enhanced property value – buyers can ascertain expected fee increases or special assessments
- Long-term marketability for financially stable properties
We will work alongside you to determine your individual needs and will guide you through the Reserve Fund Study process. It is our goal that we contribute to the financial stability of your property as well as recognize where we can offer on-going support.