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How to Find a Firm for Your Reserve Fund Study

In Manitoba, existing condominium corporations will be required to complete a Reserve Fund Study by Feb. 1, 2018.

This specialized report provides a financial pathway for condo corporations to determine how to save funds for long-term expenditures such as a new roof for the building. The report looks 30 years into the future, but since situations continually change, the report must be updated every five years.

For new condo corporations, they will have three years to complete their Reserve Fund Study from the date they are registered.

"The demand for Reserve Fund Studies is going to increase towards that February 2018 deadline," said Michael LaPorte, the president of NLD Consulting Reserve Fund Advisors who holds the professional designations of Certified Reserve Planner (CRP), Accredited Appraiser Canadian Institute (AACI), Professional Appraiser (P. App) and Professional Reserve Analyst (PRA).

"Also, the seasonality of this service creates challenges to conducting inspections in winter; therefore, 2017 is going to be a key time to try to have this Reserve Fund Study underway." As you’re searching for the right firm to complete your Reserve Fund Study, here are three simple steps to keep in mind:

1. Gather a list of individuals or firms that are qualified to complete the study.

According to the Condominium Act and Regulation, five types of certified professionals are able to conduct a Reserve Fund Study:

  • - architects
  • - professional engineers
  • - certified applied science technologists or certified engineering technologists
  • - accredited appraisers
  • - certified reserve planners.

Some restrictions, limitations and exceptions apply in certain cases.

To find a list of firms that offer this service, you could start with a simple Google search of the term "Reserve Fund Study Manitoba." Another useful step would be to contact the Manitoba Chapter of the Canadian Condominium Institute or visit the non-profit organization’s website at www.cci-manitoba.ca. On the website, you can click the "Resources" tab and then go to "MB Professional & Business Partner Directory." From there, scroll down to the "Business Partners" section and look under the service category for "Reserve Fund Studies." Currently, there are 12 companies that fall into this category, including NLD Consulting Reserve Fund Advisors.

Lastly, you could ask around for professional references from your condo management company or perhaps from friends or family members who live in a condo that has already conducted its Reserve Fund Study.

2.Ask questions of these qualified companies.

Once you have gathered a list of firms or individuals, you should confirm their qualifications. There are also several important questions that you should ask:

  • - How many Reserve Fund Studies have you individually or your firm completed to date (not just in Manitoba)?
  • - What levels of insurance do your professionals carry?
  • - Can you provide a sample of a recently completed Reserve Fund Study?
  • - Can you provide professional references?
  • - Can you provide a sample list of specific Reserve Fund Studies completed on condo corporations that are similar to my development?

 

3.Request a free proposal.

After you have narrowed down your list to a few firms, you should request a no-obligation proposal from each one. Then you can compare the proposals as well as the strengths of the answers to the questions listed above.

Since a Reserve Fund Study is a complex financial document that takes time to complete, it¹s better to get started sooner rather than later. Condo boards should start taking steps now towards finding a firm to complete this document in order to meet the upcoming deadline of Feb. 1, 2018.

NLD Consulting specializes in Reserve Fund Studies. For a free proposal, visit their website at www.manitoba.reserveadvisors.ca or call them at 204-815-5280.

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