Reserve Fund Study

What is a reserve fund study?

A reserve fund study is an analysis of all the depreciating components a condominium corporation will need to repair and replace over the next 30 years. It records the present condition of each component, estimates when it will need repair or replacement, and what that will cost. Those timelines and costs are compiled into a financial projection that helps the corporation set appropriate contributions. A study generally includes:

Who can author a reserve fund study?

Depending on your jurisdiction, eligible authors may include:

• Professional engineer
• Professional technologist
• Certified or registered engineering / applied science technologist
• Registered architect
• Accredited Appraiser Canadian Institute (AACI) member
• Designated Reserve Fund Planner or Designated Appraiser Commercial (CNAREA)
• Professional quantity surveyor
• Certified reserve planner accredited by the Real Estate Institute of Canada
• Graduate of the Reserve Fund Planning Program at the University of British Columbia

Beyond qualifications, providers must understand how condominiums deteriorate, how the property is operated and maintained, and the costs of repairing or replacing it. Confirm a provider is eligible to author the report in your area before selecting them.

Why a reserve fund study matters

A reserve fund study helps your property plan and prepare for the future. Most importantly, it ensures enough funding is set aside to maintain, repair, or replace common components. Without an accurate, up-to-date study you can't effectively plan, leaving owners exposed to paying for costly repairs out of pocket through a cash call or special assessment. An up-to-date study delivers:

An up-to-date study is also required in many jurisdictions to complete a sale. Without one, conditions of sale can be delayed and buyers may walk away.

Getting the most out of your study

The biggest challenge every property faces is making sure the study aligns with its future goals. Choose a provider that encourages open dialogue. The board should be open to the provider's recommendations — they offer an unbiased account of the property's condition — while sharing the historical knowledge owners and managers have about the building so it can be reflected in the report.

Owners may also want changes included that aren't strictly required by condition. A good provider will incorporate those requests where they don't compromise the property's financial future. Without strong collaboration, it's difficult to keep a study relevant and accurate until the next one is required.

How Reserve Plus helps

Condominium corporations and stratas use Reserve Plus to generate comprehensive, accurate reserve fund studies — delivered as a first draft in 30 days or less. Every client also gets myRPlanner (powered by StelorPM), our reserve fund management software, included for the full term. With myRPlanner you can:

• Create and approve your own reserve fund plan — a requirement in most provincial jurisdictions.
• Generate annual reserve fund reports comparing actual vs. expected contributions and expenditures.
• Understand your property's risk of a special assessment or cash call.
• Request quotations for upcoming work so you can budget accordingly.
• See clearly how your current financials relate to the reserve fund.

The other names for a reserve fund study

The same report goes by several names, and which one is correct depends on where the property is. A condominium reserve fund study and a reserve fund assessment both describe what Alberta's Condominium Property Act simply calls a reserve fund study. In British Columbia the statutory name is different — stratas need a depreciation report — and people often search for a strata reserve fund study when that is what they mean. Ontario's Condominium Act requires a reserve fund study every three years rather than every five.

Whatever it is called, the substance is the same: a 30-year inventory and condition assessment of every common component, costed and turned into a funding plan. What changes between jurisdictions is the cadence, who is permitted to author it, and the horizon the projection has to cover. Our province pages set out the requirement where your property actually sits.

Reserve fund software, included

A study is a snapshot, and a snapshot goes out of date the moment something changes. Every Reserve Plus client gets myRPlanner (powered by StelorPM) — reserve fund software included for the full term, not sold separately. See what myRPlanner does. It keeps the plan current between studies, lets the board approve its own reserve fund plan as most jurisdictions require, compares actual contributions and expenditures against the forecast each year, and shows the property's special-assessment risk as the numbers move.

Communities we serve

Reserve Plus has been engaged for more than 600 reserve fund studies across 40 Alberta communities since 2012, covering more than 23,000 units. Across Alberta we study everything from small bare-land and townhouse corporations to properties of more than 500 units. Of those, more than 55 have 100 units or more.

We have also been engaged in Camrose, Didsbury, Fort Mcmurray, Fort Saskatchewan, King City, Medicine Hat, Ottawa, Rocky View, Sherwood Park, St. Albert, Sundre, Toronto, Blackfalds, Bowden, Bragg Creek, Calgary, Chestermere, Claresholm, Cold Lake, Dead Man'S Flats, Devon, Diamond Valley, Exshaw, Harvie Heights, Leduc, Lloydminster, Lomond, Milton, Spruce Grove, Stony Plain, Vulcan County.