Budgets can be intimidating documents but they are a pretty critical part of your ownership experience. After all, the Corporation doesn’t have a credit card, so its important to plan accurately for the coming year’s expenses because no one likes to get that Special Assessment letter asking for more money.
While budget formats and contents will vary greatly from property to property, we will address the most basic areas, common to all condominiums. Detailed line items which remain a mystery to you following this brief study should be addressed with the Treasurer of your Board or your Condominium Manager.
The annual budget for any condominium corporation is an Operating Budget. This means that it represents the Plan of the costs anticipated to operate the property for the coming year. The planning is based on budget-to-actual comparisons for the current (and previous) year as well as estimates of any increases or decreases in expenses. The careful review and thorough research, combined with some knowledge of your property and/or adequate experience with similar properties, will produce a relatively accurate reflection of these expenses.


