#contingency-fund

Imagine being at your annual general meeting and hearing, once again, that the reserve fund is insufficient. A roof to replace, a façade to restore, an elevator to modernize... These projects inevitably arise in the life of a condominium. And too often, they come with bad news for co-owners: a drastic increase in annual contributions. Yet there is a simple and legal way to prevent this kind of unpleasant surprise: optimizing the reserve fund.

The reserve fund is an essential pillar in ensuring the financial sustainability of a condominium. Its calculation is often misunderstood by co-owners. This article explains how the fund is determined, which variables are taken into account, and why properly planning contributions is crucial to avoid long-term deficits.

Two key elements in condominium management are the asset management plan and the reserve fund study. Although they are sometimes confused, these two tools have distinct but complementary objectives and functions. This article aims to clarify these differences and explain their importance for co-owners.

One of the key measures introduced by Bill 16 will be the obligation for condominium syndicates to carry out a reserve fund study. This study, which is essential to the financial sustainability of condominiums, deserves particular attention.