Property Management
The purpose of a building's reserve fund in property management is to:
ACover daily operating expenses
BAccumulate funds for major capital expenditures and unexpected repairs✓ Correct
CPay property taxes when due
DProvide emergency cash flow for the owner
Explanation
A reserve fund (capital reserve) accumulates funds over time to pay for major capital expenditures such as roof replacement, HVAC systems, or elevator upgrades, avoiding large special assessments on owners.
Related New York Property Management Questions
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