Why Choose Us?
A reserve fund study is a document that provides a detailed financial forecast of capital expenditures and cash flows for your condo corporation. This must be done every 5 years according to the Condominium Property Act. The report must also be completed by a qualified and experienced provider with strong knowledge of condominium projects and the real estate industry in general. Specifically, it is important for the provider to have a good understanding of the cost and life cycle of capital replacements, as well as the financial understanding to project future cash flows.
Our professionals have over 25 years of combined experienced in the real estate appraisal industry, and over 15 years of experience doing reserve fund studies. Real estate costs, cash flows, and financial projections are matters that we deal with every day. We are therefore well equipped to provide a high quality reserve fund study to our clients. If you are curious about what our reports include, please feel free to view our Sample Report.
We can often provide our service at a competitive fee when compared to other providers in the market. We are well equipped to complete the report efficiently and quickly, while maintaining quality. If you are curious about the cost of our reports, please feel free to click here and request a quote.
The site visit is the first step in the process of completing a reserve fund study. This is when we will observe all of the common property and note its age and condition. At this time we will collect documents including the condo bylaws, financial statements, and any other information that is required to complete the report.
The next step is to compile all of the data that was collected during the site visit. The first section of the report will provide an itemized list of the depreciating common property. At a minimum this will include a description of each item, the current estimated cost to replace the item, and an estimate of the life cycle of the item. This section will also include any maintenance recommendations.
The next section of the report is where the rubber meets the road. The benchmark analysis lists all of the separate items in tabular form. The current costs of replacement, and estimates of depreciation for each item are analyzed. The conclusion of the benchmark analysis will determine if the current reserve fund balance is adequate, and if current reserve fund contributions are sufficient. Finally, a 30 year cash flow projection is presented. This cash flow projection outlines all of the projected income and expenses for the condominium, and will include a contingency for unexpected replacements.
Once complete, the report will be delivered to the client. We are always available to answer any questions you may have about the reserve fund study.