What does the reserve fund primarily cover in a condominium?

The reserve fund in a condominium is primarily allocated for long-term shared expenses and improvements. This fund is crucial for maintaining the property's value and ensuring that necessary repairs and upgrades can be made when the time comes. It typically includes costs for significant repairs, such as replacing roofs, plumbing or electrical systems, and other essential infrastructure that may not require immediate attention but is important for the building's overall health over time.

Proper management of the reserve fund helps to avoid special assessments or sudden fees that could arise if these expenses were not planned for in advance. By setting aside funds periodically, condominiums can plan for future improvements and maintenance needs, ensuring that all residents benefit from a well-maintained property.