How Often Should You Have a Reserve Study Done?

Reserve studies—also known as reserve fund studies—are essential tools in the financial planning and maintenance strategy of condominiums, multifamily complexes, and other managed properties. In Alberta, these studies are not just a best practice—they are legally required under the Condominium Property Act and Regulation.

This article explains how often reserve studies should be conducted in Alberta, what’s included in a typical study, why they matter, and when it may be wise to go beyond the minimum legal requirements.

What Is a Reserve Study?

A reserve study is a comprehensive report that assesses the physical condition of a property’s common elements and aligns that analysis with a long-term financial plan. It typically includes:

• Physical Analysis: An inspection of shared infrastructure and components—such as roofs, windows, siding, plumbing, elevators, and parking areas—to estimate remaining useful life and replacement timelines.

• Financial Analysis: A projection of future costs to repair or replace these components over a 25- to 30-year period, along with funding recommendations to ensure money is available when needed.

By combining these two elements, reserve studies help prevent financial shortfalls, special assessments, and emergency repairs that can burden owners and reduce property value.

Alberta’s Legal Requirements for Reserve Studies

Under Alberta law, all condominium corporations must follow specific guidelines for reserve studies:

• Initial Study: Must be completed within two years of the condominium corporation’s registration.

• Subsequent Updates: A new full reserve fund study must be conducted every five years thereafter.

These requirements ensure that boards maintain an up-to-date understanding of the physical and financial condition of their property and plan accordingly.

Who Can Perform Reserve Studies in Alberta?

The Province of Alberta mandates that reserve fund studies be completed by qualified professionals. This includes:

• Professional engineers

• Architects

• Certified Reserve Fund Planners (CRPs)

• Appraisers with specific reserve planning training or credentials

Choosing a qualified provider ensures compliance and enhances the accuracy of the report.

When to Consider More Frequent Updates

Although the law mandates a five-year schedule, some situations call for more frequent assessments or financial updates. Consider these scenarios:

1. Major Renovations or Capital Work

If the property undergoes significant upgrades—like window replacement, roof work, or parking structure repairs—it’s prudent to conduct a new or interim study to reassess timelines and financial projections.

2. Economic or Market Shifts

Changes in inflation rates, construction costs, or interest rates may render earlier projections inaccurate. Annual financial updates (without a new physical inspection) can help boards stay on track.

3. Aging or Complex Properties

Older buildings or those with more intricate systems (like elevators, underground parking, or pools) may see faster deterioration and benefit from more frequent studies—every three years, for example.

4. Change in Ownership or Management

A new board or management team may commission an updated reserve study to establish a baseline, especially if there has been limited financial planning in the past.

Benefits of Staying Current with Reserve Studies

Regular reserve studies provide significant advantages for property owners, managers, and residents:

Benefit	Why It Matters
Legal Compliance	Staying on a five-year schedule meets Alberta’s legal requirements.
Financial Planning	Helps avoid large, surprise costs by budgeting for future repairs in advance.
Stable Condo Fees	Reduces the likelihood of special assessments or sudden increases in contributions.
Property Value Protection	Well-maintained buildings are more attractive to buyers and renters.
Transparency & Accountability	Ensures boards fulfill fiduciary duties to owners and investors.

Failing to complete or update a reserve study can create financial risk, erode owner confidence, and expose the board to legal consequences.

Recommended Timeline for Alberta Reserve Studies

To summarize, here’s a suggested timeline based on Alberta requirements and best practices:

• Year 0–2: Complete the first reserve fund study after registration.

• Every 5 years: Conduct a new, full reserve study (physical and financial analysis).

• Annually (optional): Perform a financial update to adjust for inflation, interest rates, or unplanned expenditures.

• Every 3 years (recommended for older/complex buildings): Consider an earlier full update if property wear and tear increases.

Final Thoughts

Reserve studies are more than a legal checkbox—they’re a foundational part of responsible property management in Alberta. By following the five-year legal cycle and considering more frequent updates in key situations, boards can make better decisions, avoid costly surprises, and ensure long-term sustainability for their communities.

If your last reserve study is outdated or your property has undergone major changes, now is the time to plan your next update. A small investment in planning today could save tens of thousands tomorrow.

If you want to ensure your property’s financial health and are ready to take action, contact Stampede Engineering today! Our expert team is here to assist you in conducting comprehensive reserve studies tailored to your unique property needs. Don’t wait—secure your property’s future and reach out to us for a consultation now!