Renovation fund: definition

The renovation fund (or reserve fund) is a shared pool funded each year by co-owners to finance major upcoming works (façade, roof, lift, etc.) in a condominium (PPE).

Renovation fund at a glance

This mechanism avoids overly steep cash calls by spreading major costs over the long term. The fund’s level indicates whether the condominium is properly planning for major maintenance or whether catch-up contributions will be needed.

A simple example of a renovation fund in a condominium

For example, in a 20-unit PPE (condominium), a reserve fund of only CHF 20,000 when the roof must be replaced soon is a warning sign: higher charges or a significant cash call is likely to occur.