How often must funds in the reserve fund be reviewed?

The review of funds in the reserve fund is mandated to occur annually to ensure that the financial health of the reserve is adequately monitored and maintained. This yearly assessment allows for an evaluation of the adequacy of the funds in relation to future capital expenses, such as repairs, replacements, and improvements needed for the property. By conducting these reviews on an annual basis, property managers and owners can make informed decisions regarding budgeting and expenditures, ensuring that sufficient resources are available to address upcoming needs without risking financial instability. An annual review is also aligned with best practices in property management, providing a structured approach to financial accountability and planning.