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UT Reader Asks: What is the Best Way to Increase Reserves For My Condo Building?

by UrbanTurf Staff

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In this installment of UrbanTurf Reader Asks, a reader who lives in a small condo building inquires about the best (and easiest) way to increase the building’s low reserve fund.

I own a two-bedroom condo in a five-unit building in Dupont Circle. I purchased the unit in 2010 and have loved everything about living here. The one issue is that the building’s reserves are pretty low. Right now, the fund stands at about $10,000. Our monthly condo fees are $225 and there is talk of increasing that to $250.

I know that the most obvious way to raise funds would be to increase the condo fees significantly, but I also know that would be tough on two other owners in the building. Have any UrbanTurf readers dealt with this issue and come up with a better resolution? Thanks!

Readers, what do you think? Post your thoughts in the comments section. If you would like to submit a question for UrbanTurf Reader Asks, send an email to .(JavaScript must be enabled to view this email address).

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This article originally published at http://dc.urbanturf.com/articles/blog/ut_reader_asks_what_is_the_best_way_to_increase_reserves_for_my_condo_build/9375

3 Comments

  1. Will Smith said at 6:31 pm on Friday January 9, 2015:

    test

  1. Terry said at 6:34 pm on Friday January 9, 2015:

    No one can really answer that question without more information. Have you talked to your board? What do they say?

    The best way for a board to know what the reserves should be is to have a reserve study done. Then, the board can decide whether to fully fund the reserves, or some portion of them. If a reserve study reveals that your reserves are woefully inadequate, you might have to resort to a special assessment.

  1. Jeff B said at 11:12 pm on Friday January 9, 2015:

    why don’t you ask to see what the annual budget looks like? where are expenses and is there a way to evaluate current expenses to see if contracts can be renegotiated to find more competitive bids and money is being spent effectively. Then look at your anticipated capital improvements over next 5-10 years if no reserve study and see what you will need to pay for those expenses. Sometimes there is no way around needing to pay for a replacement roof in x years. Your 10k will be used up very quickly and is really to be used for emergency repairs, not upcoming replacement/ obsolescence. Our PM recommends we have a minimum of 10k for unanticipated repairs in our 13 unit building, so you should be shooting above that to make such repairs. Sometimes it will require a fee increase because utilities have gone up each year and you can’t raid your reserve contributions to pay for increasing utility bills.

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