Many leaseholders resist reserve funds and many managing agents fail to draw up long term maintenance plans and put only small or knowingly inadequate sums into reserve funds.

You should encourage all clients to draw up long term maintenance plans using a life-cycle costing method whether the leases allow for a reserve fund or not.

Covering Topics

  • Overview
  • Cyclical Maintenance Plans
  • Contributions For Cyclical Maintenance Plans And Reserve Funds
  • Sinking Or Reserve Fund
  • Advantages Of Reserve Funds
  • Can You Set Up A Reserve Fund For A Block?
  • What Is The Purpose Of The Fund?
  • Use Of Annual Surpluses And Reserve Funds
  • Investment Of Reserve Funds
  • Interest Earned On Reserve Funds
  • What If The Lease Does Not Allow For A Reserve Fund To Be Built Up?
  • Dealing With A Backlog Of Repairs
  • Further Information
  • Appendix 1
  • Appendix 2
  • Appendix 3

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