Why should a condominium have an annual budget and reserve?
A budget turns foreseeable obligations into a cash-flow plan and reduces urgent special collections.
Insurance, inspections, special treatments and contract renewals may be payable only once or twice a year. Without monthly provision, a foreseeable bill can still create a cash shortage.
The reserve should reflect building age, system complexity, fault history and owners’ resolutions. Its balance and use should be shown separately so owners can see what is available and why it is being held.
In practice, the building should define who may approve expenditure, what evidence is required before payment and how owners are informed. ALTIT LUXURY structures this process, centralises the information and brings decisions requiring approval to the condominium owners’ committee.
Three points to check
- Annual payment calendar
- Cash-flow forecast
- Separate reserve reporting
Official and professional sources
These links are provided for further reading. Always check the authority’s website for the latest version and instructions.