Condominium Reserve Fund Studies
1. What is a Reserve Fund Study (RFS)?
A Reserve fund study is a budget planning tool which identifies the current status of the Reserve Fund and a Funding Plan to offset the anticipated expenditures for the major repairs and replacement of components, elements or assets, for which the corporation or association is responsible. The reserve fund study consists of two parts; the Physical Analysis and the Financial Analysis. Reserve Fund Study, Depreciation Study, Depreciation Report, Contingency Reserves are commonly used inter-changeably.
2. What qualifications are required to complete a Reserve Fund Study (RFS)?
A reserve fund study is completed by a licensed Appraisal Institute of Canada member holding the AACI, P.App designation with experience in reserve fund studies. Our experienced team works with a network of licensed Appraisers which have completed over 250 reserve funds throughout the province including Regina, Saskatoon, Prince Albert, Lloydminster, North Battleford, Moose Jaw, Swift Current. Because of this experience, we can offer competitive pricing, reduced timelines, noting that we offer all inclusive pricing which includes travel, mileage, inspection, report writing and submission.
3. What kinds of organizations typically require a Reserve Fund Study (RFS)?
Various organizations may request a reserve fund study including:
- Condominium Corporations
- Strata Corporations
- Non-profit housing
- Housing co-operatives
- long term care homes
- Seniors housing facilities
4. Why would an organization choose to get a Reserve Fund Study (RFS)?
Organizations typically have Reserve Fund Studies completed to ensure that they have sufficient reserve funds available. Within the province of Saskatchewan, provincial legislation requires that all Condominiums have a reserve fund. The initial reserve fund study is required within three years of the date of the corporation’s first meeting, or if converting an existing apartment building it must be undertaken before the sale of any unit. A reserve fund study and written report must be completed every 5 years for properties with 12 or more condo units.
5. What is involved in a Reserve Fund Study (RFS)?
In a full reserve fund study the property is physically inspected by the Appraiser. The appraiser conducts a component inventory, and analysis the condition of the various components. This will likely involve a combination of a site inspection, measurement, photographs, and a review of any available blueprints. The appraiser then prepares life and valuation estimates of the various components. The existing reserves are then analysed and a final funding plan can be designed.
6. What are the costs of a Reserve Fund Study (RFS)?
Reserve fund studies have varying costs dependent on; the size of the complex, design, age, location and availability of information. As we have 6 offices across Saskatchewan and work with a network of licensed appraisers we are able to provide competitive pricing and timelines throughout the province. If you have copies of the blueprints or condo plans that may assist the appraiser, or previous studies please let us know before we provide a quote. We can provide you an estimate as to the cost of a Reserve Fund Study if you fill out the following form:
Reserve Fund Study Request Form
The following information is required by our appraisal staff prior to providing a quote, and estimated timeline. We are proud to offer all inclusive pricing on all of our projects which includes travel, mileage, inspection, report writing and submission. Once the request has been submitted one of our consultants will contact you to confirm details and provide a quote.