The Numbers: Reserve Funds For Condos

The Numbers: Reserve Funds

If you are a condo owner you may or may not know about your Reserve Fund. Imagine this, a severe thunderstorm rolls through in the summer and causes roof damage. Maybe the parking lot is old and got beaten up by snow plows over the winter and could use some work to get repaved or lines painted again. How do these projects get paid for?

The purpose of a Reserve Fund in a condominium is to provide financing for major repairs and renewal projects over the life of a condominium complex. To ensure the Reserve Fund is adequate for the size and age of the property and types of Common Elements, a regular Reserve Fund review should be conducted by the Condo Board. You may want to find out when the last Reserve Fund review was done and if the Fund reasonably covers expected repairs and upgrades, plus adequate amounts to deal with unexpected expenses. Reserve Funds are funded and maintained by a portion of the tenants monthly condo fees. Take a look at the image below, you’ll see in a given year how monthly deposits are made to the reserve fund, however occasions occurred where the fund was used for projects. This process carries on month after month, year after year. Without it, no maintenance or upgrades can be done and the property deteriorates. A healthy Reserve Fund is ctricial to a condo and its tenants.

reserve fund condo

If you are in the Windsor real estate market, maybe looking for condos for sale in Windsor because you are ready to downsize or maybe it’s a more appealing starter option, you may want to ask your REALTOR® about the Reserve Fund for the facility and make sure the property owner is set-up to maintain the value of your potential property purchase for the long-term.

Here at Jump Realty, all of our agents can help you comb through the condos for sale in Windsor, Ontario so the one you buy makes sense now, and in the future. They’ll give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, and Chatham, no matter where you are a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!