On the positive side, they relieve individual owners of the burden of maintaining common areas, such as landscaping, snow removal, and building maintenance. They also contribute tocreating reserve fundsto address unexpected repairs or replacements. However, it is crucial to understand that the dues ...
If the building does not have a sufficient reserve fund, it could result in special assessments, which can be costly for condo owners. As an owner, you will be responsible for paying for these maintenance services through a monthly fee, known as condominium fees or assessments. These fees ...
the Department of Veterans Affairs might request additional information from the board running the condo building. This info might include a list of officers, a copy of condo bylaws, or documents proving the building has a large enough reserve fund of cash ...
Managing the reserve fund stands as part of a board’s fiduciary responsibilities. And the main goal is to ensure that the fund is always there when needed. “The board will make decisions on who will manage and invest the money in the fund and an accountant will guide them,” says Frumk...
their revenue every year to ensure a healthy reserve fund. “There are pretty strict guidelines and in order to provide financing (for the purchase of new units), they have to be setting aside at least 10 percent each year or have had a reserve study in the last 24 months,” says ...
Condo complexes must meet specific criteria to be approved for financing, such as a healthyreserve fundand a low percentage of rentals. It is essential to work closely with a knowledgeable lender who understands the unique financing requirements for condos. ...
Rainy Day Money – Condo StyleReserve Fund Obligations
Our experienced and licensed team is ready to assist in the management of your building’s financial information. We offer services in all financial processes, development of the Annual Operational and Reserve Fund budgets, reconciliation of all banking documentation, and processing of all invoices, ...
Financial planners and accountants all agree on the importance of a reserve fund. But all reserve plans are not created equal. Careful, competent, professional management is the key. If the rainy day fund can't foot the bill for an unforeseen emergency, boards could find themselves in a tough...
unexpected assessments can arise for unforeseen repairs or legal issues. Before purchasing, review the condo’s reserve fund study and meeting minutes to assess the financial health of the association. This proactive approach can help you avoid surprises and ensure a stable financial future in your ...