top of page
< Back

Save this article  > 

Reserve Fund Planning – Not as Simple as it Seems

Sally Thompson
Publication date:
April 12, 2022
Article Summary: 

The article discusses the complexities and challenges of reserve fund planning for condominiums. It emphasizes that many condominiums, especially those less than ten years old, are underfunding their reserves, posing financial risks in the long term. The current minimum requirement for reserve funds (10% of the operating budget) is considered inadequate, and most new condominiums need a steep increase in reserve fund contributions. The article highlights various factors that contribute to underfunding, such as the length of phase-ins, exponential increases, and market changes affecting costs. To ensure financial success in the future, the article suggests increasing contributions, considering longer data analysis periods, accounting for building-specific challenges, and avoiding prolonged phase-ins.


Condominium, Reserve Fund Planning, Underfunding, Financial Risks, Reserve Fund Study, Phase-ins, Condo Governance, Financial Success, Cost Analysis, Building-specific Challenges, Contribution Increase.

Source Citation: 
Sally Thompson
Reserve Fund Planning – Not as Simple as it Seems
April 12, 2022
Did you find this article useful? 
Your feedback is important not only to us, but to all the other key players in the condo industry.  Help us by letting us know if this article is relevant and useful.  This will help us prioritize articles that provide helpful guidance to other key players like you. 

Please login to use this feature.

bottom of page