Understanding Condo Finances - Reserve and Operating Funds

When you pay your condo fee, it is divided into two main categories: the Operating Fund and the Reserve Fund.

Operating Fund: This covers the day-to-day expenses of running the condo. Think of it as your monthly household budget. It includes things like utilities, cleaning, landscaping, and general maintenance.

Reserve Fund: This is like a savings account for big projects and unexpected repairs. It covers major expenses such as roof replacements, elevator repairs, and other significant maintenance that doesn't happen every day but is crucial for keeping the building in good condition.

Together, these funds ensure that the condo remains a safe, comfortable, and well-maintained place to live.