A directors toolkit for renovation success
Originally published in Vol 32 #4 September 27, 2017 in Condo Business Magazine
Given how much corporations are likely to invest in renovation projects, it’s important to set them up for success. Here’s advice to help directors do just that.
The reserve fund study
Before even thinking about a renovation, take a look at the corporation’s reserve fund study (RFS).
Directors need to know their RFS thoroughly and understand its limitations. Specifically, it’s critical to understand that reserve fund studies don’t provide exact implementation schedules or precise budgets for anticipated projects and always seem to calculate the annual interest rate for the reserve fund account using interest rates that no local banks offer.