<p>When considering purchase of a condo, one gets the advice to look into how much money the association has in reserve.</p>
<p>But how does one go about assessing how much is enough? Are there guidelines based on number of units in the complex, age of the building, etc?</p>
<p>CHISquare–I do not know of a “guideline”. When we bought our place, we considered $$ in reserve, when was the last time roof replace, exterior painted, windows replace, age of property-ie-pipes, and grounds-in our case pools and tennis courts. Being in California we also needed to consider earthquake insurance. I wanted to see 1.5 x’s what I thought it would take to address these kind of replacements/repairs.
I hope this helps-APOL-a mom</p>
<p>A friend was looking at Condos and described the condition and amount of money the Condo had. I said run. The condition of the association was poor and there wasn’t much in the fund per unit. There are associations that skimp on maintenance - so they pay more later instead of paying a small amount now.</p>
<p>Thanks for those thoughts. I had thought of some of that on my own, and have also learned that it is helpful to request copies of minutes of the most recent board meetings to see what issues are being discussed. Interesting reading, but wish I had a brother in the construction business to help me assess the adequacy of the funds in reserve!</p>
<p>Our townhouse condo association has a reserve fund that specifically lays out what needs to be replaced with the life span ie - paint every five years - with estimated cost of the job. We found out a few years ago that siding was never put on the reserve fund list (although painting was) It turned out to be a million $ plus project. We tried to spread it out over 5 years and not have an assessment but the community overwhelmingly voted to get a loan and get it done right away with the assessment. We chose to replace all the lighting as well at the same time.</p>
<p>I would find out if they have an itemized list of maintenance projects and how the reserve moneys are allotted. Pool, paving, roof, siding, decks/porches replaced/powerwashed, walkways, lighting etc. It should also have a schedule that dictates when the work is to be done.</p>
<p>I would also be aware of how the management comapny treats me as a caller. This is a company that you’d have to deal with if there are any issues with your unit or the complex. See if you can speak with the managing agent. Are the board members accessible? I would also try to speak with current residents to see if they like living there.</p>
<p>Good luck with your search!</p>
<p>Pengo, thanks for all the helpful tips! I appreciate it.</p>
<p>Sometimes it not just how much they have in reserve but how often it turns over. you can have a condo with a healthy looking reserve but the board never uses it and the place is beyond need of infrastructure repair. And then again you can have one who uses the reserve every two to three years for a major project but still maintains the same healthy balance. So ask about turn over in the reserve account over the last three to five years.</p>