Keep Your Condo in Top Shape: Mastering the Reserve Fund

By Oksana Drahan
October 16, 2025

In Alberta, condominium corporations are legally required to establish and maintain a Reserve Fund to ensure the long-term sustainability and upkeep of their properties. This fund is essential for covering the costs of major repairs and replacements of common property elements, such as roofs, elevators, and HVAC systems.

What Is a Reserve Fund?

A Reserve Fund is a pool of money set aside by the condominium corporation to address the anticipated costs of significant repairs and replacements of the property’s common elements. These funds are distinct from the operating budget and cannot be used for day-to-day expenses. The establishment and maintenance of a Reserve Fund are mandated by the Condominium Property Act.

Key Requirements

Mandatory Establishment: All condominium corporations in Alberta must create and maintain a Reserve Fund.

Reserve Fund Study: A comprehensive study must be conducted every five years to assess the condition of the property and estimate the costs for future repairs and replacements. This study must be performed by a qualified professional.

Reserve Fund Report and Plan: Following the study, a report detailing the findings and a plan outlining how the corporation will accumulate and manage the funds are required.

Importance of a Reserve Fund

Financial Planning: Helps in budgeting for significant repairs and replacements, preventing unexpected financial burdens on unit owners.

Property Value Maintenance: Ensures that the property remains well-maintained, preserving its value and appeal.

Legal Compliance: Adhering to the requirements set forth in the Condominium Property Act avoids potential legal issues and penalties.

Practical Tips for Condo Owners

Review the Reserve Fund Plan: Familiarize yourself with your corporation’s Reserve Fund Plan to understand how funds are allocated and whether the plan is up-to-date.

Participate in Meetings: Attend board meetings and annual general meetings to stay informed about decisions impacting the Reserve Fund.

Ask Questions: Don’t hesitate to ask for clarification on how funds are being used or how future contributions are calculated.

Monitor Spending: Request periodic updates on actual expenditures versus planned allocations to ensure transparency.

Collaborate with Managers: Work closely with your condominium managers to address concerns and provide input on priorities for maintenance and repairs.

By understanding and properly managing the Reserve Fund, condominium corporations can ensure the longevity and financial health of their properties, providing peace of mind to all stakeholders involved.

UrbanTec’s team of dedicated condominium managers supports boards and owners at every stage, from reserve fund planning and studies to ongoing property maintenance and strategic guidance. This ensures your investment is protected and your community thrives.