In Edmonton, reserve fund planning isn't just smart, it's the law. But beyond regulatory requirements, it's one of the most important tools condo boards have for protecting owners’ investments and ensuring long-term financial stability. A well-maintained reserve fund can mean the difference between a smooth-running building and one burdened by surprise special assessments, deferred maintenance, or legal trouble.
For boards that want to manage responsibly and avoid costly surprises, partnering with a professional condo management company like Converge Condo Management can make all the difference.
A reserve fund is a separate savings account that every condo corporation must maintain. It’s used to pay for major repairs and replacements of common property components, such as:
In Alberta, the Condominium Property Act requires condo corporations to complete a Reserve Fund Study every 5 years and maintain a healthy reserve fund based on that assessment.
Every Edmonton condo board must ensure compliance with the following:
Failing to comply can lead to legal liability and mistrust among owners.
Reserve fund planning is often misunderstood or mishandled. Common errors include:
These missteps can result in steep special assessments, angry owners, or poorly maintained buildings.
Planning ahead helps condo boards:
With clear projections and smart budgeting, surprises become rare.
A professional condo management company like Converge Condo helps boards by:
This ensures reserve fund planning becomes a consistent part of the board’s long-term strategy, not an occasional headache.
One Edmonton condo corporation, after years of reactive spending, partnered with Converge Condo to conduct a Reserve Fund Study and implement a revised contribution plan. Over the next three years, they eliminated special assessments, increased owner satisfaction, and completed long-postponed exterior renovations without raising monthly condo fees drastically.
Reserve fund planning isn’t just about complying with provincial rules it’s about protecting your community’s future. Edmonton condo boards that take a proactive, informed approach will not only avoid crises but build trust with owners and set their property up for long-term success. With the right partner, like Converge Condo, navigating the complexities of reserve fund planning becomes much more manageable.
The operating fund covers day-to-day expenses (e.g., cleaning, landscaping), while the reserve fund is for long-term repairs and major capital replacements.
It depends on the age, condition, and size of the building. A Reserve Fund Study will recommend appropriate contribution levels to cover projected expenses over 25–30 years.
Yes. Under Alberta law, a study must be done every 5 years by a qualified professional, followed by a formal Reserve Fund Plan.
Yes. The plan must be made available to all owners and is often included in AGM packages or posted on the resident portal.
No. Reserve funds are strictly for major capital replacements and cannot be used for regular upkeep or admin expenses.
If the fund is insufficient, the board may be forced to levy a special assessment on owners or take out a loan—both of which can cause financial strain.
Converge Condo works closely with boards to ensure compliance, assist with forecasting, and align budgeting with reserve needs ensuring long-term sustainability.
