The primary function of a condominium board or property manager is to operate, maintain, and repair the common property. The board also has a responsibility to preserve the value of the property. To ensure this, Reserve Fund Studies are legislatively required financial documents for every condominium corporation in Ontario as set forth in the Condominium Act, 1988, S.O. 1988,c.19, Section 94. Our Reserve Fund Study reports are forward-looking analysis which estimates the timing of major common area elements replacement and/or substantial repair expenses in order to develop a prudent strategy for accumulating funds which will be used for covering such expenses. These capital expenditures are necessary to maintain the subject property replaceable or restorable common elements at a condition ensuring that the building does not become structurally obsolete and is kept in aesthetically pleasing condition until it reaches the end of its expected useful life.
Why you should choose us to perform the Reserve Fund Study for your condominium?
It requires a distinct specialized knowledge to produce a reliable and realistic Reserve Fund Study. It requires thorough knowledge in a variety of fields:
- Construction Engineering – knowledge of specific building structures and types of materials as well as how their properties change with ageing is an absolute must. Ability to differentiate actual from effective age of building components as well as the expertise to accurately estimate the useful and remaining life for building components – just to provide a couple of examples;
- Mechanical Engineering – knowledge of sophisticated building mechanical components – heating and cooling systems, generators, elevators, etc;
- Statistical Data Analysis – knowing the data sources is not sufficient to produce a reliable report – one has to know the method of data collection, compilation, and its limitations.
- Long Term Economics Budgeting and Forecasting – Reserve Fund Studies cover a very long time period – 30 years. This requires a great deal of knowledge and attention to detail;
- Construction Repairs – repairs in some cases could be up to three times as large as the construction cost for identical types of construction. Knowledge of the repairs/reconstruction premiums for different building elements is an absolute must for Reserve FundStudies.
- Accurate measurements – we are prepared and can work with any type of drawings – paper, in electronic format, and/or blueprints. If you don’t have any of these, not a problem – we can conduct measurements on-site.