Sep 6, 2026

How Reserve Fund Studies Affect Your Condo Fees

The notice said your fees are going up 12% next year to 'fund reserve contributions per the updated study.' Here's what that sentence actually means, and what you're allowed to ask to see.

Quick answer

A reserve fund study is an engineering assessment, required under Ontario Regulation 48/01 and updated at least every three years, that estimates when major building components (roofs, elevators, mechanical systems) will need replacing and how much your condo needs saved to pay for it without a surprise bill. When a study finds the fund is short of that target, either because the building's condition changed or a prior study underestimated it, your board raises the monthly reserve contribution to close the gap, which is what shows up as a fee increase. Ontario's Auditor General found roughly 69% of condos registered from 1980-2000 had inadequate reserve funds, so a fee increase tied to a study update is common, not necessarily a sign of mismanagement.

belo keeps the maintenance and asset record that a reserve fund study is actually built on, so when a board explains a fee increase, the study behind it reflects the building's real, documented condition instead of a conservative assumption padded in because nobody could produce a clean service history.

Every so often, a notice goes out: condo fees are increasing, and the reason cited is some version of "to fund reserve contributions per the updated reserve fund study." For most residents, that sentence raises more questions than it answers. What study? Funding what, exactly? Is this normal, or is something wrong?

Here's what's actually behind it, and what you're entitled to ask.

What a reserve fund study actually is

A reserve fund study is an engineering assessment of your building's major shared components, the roof, elevators, boilers, parking garage structure, building envelope, and similar big-ticket items, that estimates two things: how many years of useful life each component has left, and how much money the corporation needs to have saved when each one needs replacing. Ontario Regulation 48/01, made under the Condominium Act, 1998, requires an initial study within a corporation's first year and an update at least every three years after that.

The study produces a funding plan: a target reserve fund balance for each future year, and the monthly-per-unit contribution needed to hit it without a sudden, unplanned bill landing on owners.

Why the number in the study can go up

A few things commonly drive an increase between studies:

Cost estimates change. Construction and equipment costs move, and a study done three years ago may simply understate what a roof or elevator replacement costs today.
Condition assessments change. An engineer may find a component is aging faster, or slower, than the prior study assumed, which shifts both the timeline and the required contribution.
The prior study was too optimistic. This is more common than boards like to admit. Ontario's Auditor General found that roughly 69% of condos registered in the province between 1980 and 2000 had inadequate reserve funds, often traced back to developers setting initial contributions low to keep early condo fees attractive to buyers. A later study catching up to reality is a correction, not a new problem.

A fee increase tied to a study update is, in that sense, the system working as intended: the alternative to a gradual, planned contribution increase is an unplanned special assessment later, when a component actually fails and there isn't enough saved to cover it. Our guide to condo special assessments covers what happens when that planning doesn't happen in time.

What you're entitled to ask for

Reserve fund information isn't confidential. As an owner, you can ask your property manager for the current reserve fund study or a summary of its findings, and it's a required part of the status certificate package if you're buying or considering listing a unit. Reasonable questions to ask your board or manager:

What specifically changed since the last study? Cost estimates, condition findings, or both.
Is the increase being phased in, or applied all at once? A well-run funding plan smooths increases over several years rather than front-loading them.
What was the study based on? A study built on the building's actual, documented service history for its major components is more reliable than one built on generic assumptions for a building of similar age and type, because the engineer isn't forced to assume the worst about components with no documented condition.

How belo fits into this

The gap between "study based on real building data" and "study based on generic assumptions" comes down to whether the corporation has a continuous, dated record of every asset and the work done on it. belo is the system property managers and boards use to keep that record, so when your board explains a fee increase, the study behind it reflects your building's actual condition rather than a conservative default. If your board or property manager wants to see what that kind of record looks like in practice, belo has a public demo.

This is general information, not financial or legal advice. Reserve fund rules and cycles vary by jurisdiction and by your corporation's specific declaration and by-laws. Confirm current details with your property manager or condo counsel.

Frequently asked questions

Why did my condo fees go up after a reserve fund study?

Reserve fund studies periodically re-estimate when major building components will need replacement and how much needs to be saved for it. If the new estimate is higher than what your building has been contributing, whether because costs rose, a component's condition is worse than expected, or the prior study underestimated the need, the board typically phases in a contribution increase to close the gap.

How often is a reserve fund study updated in Ontario?

Ontario Regulation 48/01 under the Condominium Act requires condo corporations to update their reserve fund study at least every three years, with an initial study required within the corporation's first year of registration.

Am I allowed to see my condo's reserve fund study?

Yes. Reserve fund information is included in the records a condo corporation must make available to owners, and it's a required part of the status certificate package a buyer receives when purchasing a unit. Ask your property manager for the current study or a summary of its findings.

What questions should I ask my board about a fee increase tied to a reserve fund study?

Ask what specifically changed since the last study (cost estimates, component condition, or both), whether the increase is being phased in or applied all at once, and whether the study was based on the building's actual, documented maintenance history or general industry assumptions for a building of its age and type.

Is a reserve fund contribution increase the same as a special assessment?

No. A reserve fund contribution increase is a planned, gradual rise to your regular monthly fee, phased in as part of a funding plan the board approves. A special assessment is an unplanned, one-time extra charge levied because the reserve fund and current contributions weren't enough to cover a cost that's already due.