Reserve Fund Study

Reserve Fund Study

Building Reserve Fund Study

Why would you need a Reserve Fund Study?

Reserve funding is the capital specifically allocated to cover expenses for major repairs and maintenance of buildings. Having financial reserves helps avoid the interruption of cash flow for building and property owners, as well as any inconveniences and service interruptions for the users and occupants of the building or property.

In Dubai, reserve funds study is prepared to assist community managers in determining the appropriate amount for the annual contribution to the contingency fund which estimates the repair or replacement cost for, and the expected life of, each of the items covered within the common areas, such as:

  • Exterior of the building (cladding, epoxy paint, render)
  • Windows and frames
  • Roofs
  • HVAC systems
  • Plant and machinery
  • Common electrical systems

How We Can Help?

Land Sterling has Certified building surveyors in Dubai who deliver accurate, comprehensive, and meticulous reserve funding studies to property owners and owners associations for a variety of reasons, including:

  • Development of a stable and feasible funding plan that meets the needs of both investors and future owners
  • Identification of multi-year contributions necessary to cover future repair/replacement costs
  • Provision of information on the service life and forecasted replacement costs of assets
  • RERA’s annual service charges approval for freehold buildings

Our study will include the following:

  • Cash flow balance sheet
  • Expenditure and contributions
  • Projected sinking fund costs up to a period of 20 Years
  • Proposed contribution

The Real Estate Regulatory Authority of Dubai (RERA) has made the study mandatory in securing the approval for service charge budgets. Individuals and entities that need to have the study conducted include the following:

  • Auditors
  • Developers / Property Management companies
  • Building owners
  • Owners’ associations

Questions: When should an owner’s association or community management request a study? Is it too early to request such a study for newly constructed building recently handed over to the owners by the developer?

Key contact

Surajit Biswas MRICS, CFM, ACIArb

Head of Project and Building Consultancy
Request service