Steven Laidlaw of Reserve Plus presented our first webinar of 2026. The session focused on understanding reserve fund studies, budgeting for major projects, and what to do if your condo corporation is facing a funding shortfall.

“Reserve Plus was founded on the premise that Condominium Owners have been underserved in their reserve fund management for too long.“

We have over 20 plus years of experience in the reserve fund industry, and are focused on building accurate, reliable and innovative solutions for condominium corporations and strata’s

Steven Laidlaw – Co-founder & CEO

What a Reserve Fund Study Is and What It’s Not

A Reserve Fund Study Is:

• A 30-year capital replacement budget for all commonly owned property.
• An inventory of components, including photos, materials, square footage, expected lifespan, and estimated replacement costs.
• A funding model that outlines how much should be contributed annually to maintain long-term health.

A Reserve Fund Study Is Not:

• A technical engineering report or condition assessment. It’s based on visual, non-destructive inspections.
• A guaranteed replacement schedule. It’s a budgeting tool, not a hard mandate. Projects can shift earlier or later depending on real conditions.

Why Reserve Funds Matter

Alberta condominium legislation requires corporations to update their reserve fund studies every 5 years and provide to all condo owners. Steven emphasized that the reserve fund is an asset jointly owned by all unit owners. A strong fund increases property value and makes the building more attractive to buyers.

Owners should think of contributions as covering the portion of wear and tear happening while they live in the building, not paying for future owners’ costs. Underfunding today only shifts the burden (and higher risk) to later residents.

When Your Reserve Fund Is Underfunded: What Now?

Steven outlined three primary options, depending on urgency:

Option 1: Increase Fees (Ideal when 5+ years ahead). A 3‑year “catch‑up period” followed by inflation‑level increases is the recommended strategy when there’s enough time to prepare.

Option 2: Special Assessment. Used when the shortfall is too close (less than 5 years). Owners may need personal capital, a line of credit, or to roll fees into their mortgage to cover the expenses.

Option 3: A Condo Loan. Not common, but increasingly relevant. The condo corporation borrows, then repays through higher fees over time, spreading the cost across future owners.

These options are also not mutually exclusive and your condo management brokerage and reserve fund planner can talk to you about hybrid models that combine these options.

How to Read a Reserve Fund Study

Steven walks through how to read a reserve fund study. As he explains in the webinar, “the most important part of your whole reserve study is the required annual contribution” and how it connects to the funding model, projected balances, and upcoming capital projects. He cautions that condo boards should be tracking this annually.

Using Stelor to Track and Update Reserve Plans

To help boards stay ahead of funding issues, Steven demonstrated how Stelor, Reserve Plus’s interactive client portal, connects directly with Magnum York’s Rent Manager system. As he explained, the platform is designed to replace the limitations of a static PDF by providing “a dynamic, interactive version of the reserve study” that updates automatically as real financial data comes in. With the new integration, Stelor can now pull the general ledger entries, contributions, interest, and expenditures straight from Rent Manager, allowing the system to “generate the resulting reserve plan” and highlight where actuals are diverging from the original funding model. Steven also showed how the software lets users preview the next five years of scheduled projects and visualize potential shortfalls, giving boards clearer insight into whether fee increases, project adjustments, or special assessments may be needed. It’s a powerful tool for keeping the reserve plan current, transparent, and easy for condo boards to act on. Alberta condominium legislation requires reserve fund plans be presented at the Annual General Meeting particularly if extraordinary or earlier than planned reserve fund expenditures have occurred.

Q&A

1. Who determines the size of the reserve fund?
   • The reserve fund is determined by the condo itself, specifically what components exist, when they need to be replaced, and what it will cost. There is no fixed rule of thumb; the reserve fund provider totals all capital replacement items over the next 30 years and develops a funding plan so the corporation has enough cash available when needed. Larger buildings generally require larger total reserves, but per‑unit costs may be lower because more owners share the burden.
     
2. How accurate are the budget estimates in a reserve fund study? Are prices based on local market conditions?
   • Steven shared that Reserve Plus uses three main inputs to ensure accuracy:
     • Industry cost catalogues (RSMeans and Swift & Marshall) adjusted for regional differences.
     • Actual quotes shared by condo managers and boards for items like windows, siding, or balconies.
     • Their own 15+ years of experience working closely with contractors and property management partners.
   • He noted that estimates are typically within about 5% accuracy in the first three years, but long‑term projections can shift due to inflation and supply‑chain surprises, as seen during COVID‑19.
     
3. How can owners ensure that their contributions are actually going into the reserve fund and not used elsewhere?
   • Steven noted that at each year‑end, the property manager prepares audited financial statements showing all operating and reserve revenues and expenses. All owners should have access to these audited financials when accounts are held in trust. Reviewing them annually ensures transparency and accountability.
     
4. When would annual contributions be less than inflation in the reserve fund forecast?
   • Steven explained that contributions aren’t based on inflation; they’re based on having enough money to complete upcoming replacement projects. If a reserve fund is underfunded, fee increases may far exceed inflation for several years. However, once the corporation gets past a period of heavy capital replacement, contributions may decrease and then return to inflationary levels.
     
5. What percentage of condo fees should typically go toward the reserve fund?
   • The old “10% of operating budget” rule is no longer realistic. Based on Steven’s experience, healthy contributions tend to land around 20%–25% of total condo fees, sometimes up to 30%. That said, the proper percentage is determined by actual operating needs and reserve requirements, not a fixed ratio.
     
6. What can owners do if the board is not following the reserve fund study and delaying repairs?
   • Steven noted two common scenarios:
     • Most common: boards want to complete projects but don’t have the money, and owners resist fee increases or special assessments.
     • Less common: boards have funds but choose not to spend them.
   • He explained that owners can join the board, advocate for proper planning, or speak with the property manager, but ultimately, the board is the decision‑maker. There’s no simple enforcement mechanism if a board is simply unwilling to act.
     
7. If structural defects from 10 years ago cost millions to repair but aren’t covered by insurance, what recourse do owners have?
   • Steven confirmed this is primarily a legal issue. After 10 years, claims against developers are often beyond the statute of limitations, and many developers dissolve corporations after completing buildings, leaving no entity to sue. Boards also have fiduciary duties to act once structural issues are identified. Failing to address serious problems can expose them to legal liability, as seen in high‑profile cases like the Surfside collapse. Steven suggested owners consider joining the board or seeking legal advice rather than attempting to sue the board collectively.

As we wrapped up our first webinar of 2026, one theme stood out clearly: understanding your reserve fund study is essential to protecting your building, your investment, and your community. With tools like Stelor making financial planning more transparent, and expert guidance from partners like Reserve Plus, condo boards and owners have more support than ever to make informed, proactive decisions. Thank you to everyone who joined us live, asked thoughtful questions, and continues to engage in these important conversations. We look forward to seeing you at our next session and to bringing you even more resources to help your condo thrive in the year ahead.

Further Resources:

• Reserve Plus
• Stelor – Capital Lifecycle Planning
• Register for future webinars: https://magnumyork.com/webinar/
• Webinar Recap – The Essential Role of Management Companies: Insights from Magnum York Property Management
• Webinar Recap: Navigating Condo Living – Understanding Rights, Responsibilities, and Legalities for Owners and Tenants with Roberto Noce

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