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Business Valuation Services in India

Reserve Fund Analysis

A building reserve fund is a separate fund that is maintained by the condominium corporation. The reserve fund is funded by condominium owners, and is used to pay for the major repair and replacement of common elements and assets of the condominium corporation. The building reserve fund study is generally used for future budgeting by property managers, and forms the cornerstone of forecasting of capital replacement costs. Overlooking its importance can lead to a deficit in capital for vital asset replacements. A reserve fund study will conclude with a report. The report will contain background information about the condominium corporation, the current condition of common elements and assets, the expected costs going forward to repair and/or replace the common elements and assets, and various contribution plans that may be used to fund these expenditures.

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