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Question #111

Why does my landlord need to collect a reserve fund (sinking fund)?

Most modern leases allow a landlord to collect money in advance to establish a sinking fund to cover the cost of cyclical or expensive work such as decoration of the outside of a building or structural repairs such as roof works. It is collected over successive years so that monies are in place when these larger works need to be carried out.

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#111

Answered by

Jennie Bunting

Estate Management

Jennie joined The Acorn Group when she was in her 20’s and over the years has gained hands-on experience in both the property and block management sectors, heading up both divisions and as Director of Estate Management for the last 15 years.