Condo Reserve Fund Studies - Should there be More?

The article discusses the importance of reserve fund studies (RFS) in condominiums and introduces the concept of the Total Cost of Building Ownership (TCBO). The TCBO takes into account all costs related to condo ownership, including common element costs and individual unit owner costs, such as mortgage interest, insurance, property taxes, utility bills, and maintenance and replacement costs. The current RFS process typically focuses on the replacement cycle of individual building components without considering interactions between components and future energy cost increases. The article proposes that the TCBO approach can minimize ownership costs for both the condo corporation and individual unit owners over the long term.