Annual General Meeting: A Guide to Success
04/03/2026Condominium Contingency Fund: What You Need to Know
04/03/2026The annual budget is your syndicate’s most important management tool. A well-prepared budget prevents surprises, justifies common expenses and ensures the building’s long-term financial health. In Quebec, the budget must be presented and voted on at the annual general meeting.
Essential budget items
Operating expenses (working capital fund)
| Item | Typical % of budget | Example ($120 000 budget) |
|---|---|---|
| Insurance | 15-25% | 18 000$ to 30 000$ |
| Maintenance and repairs | 15-25% | 18 000$ to 30 000$ |
| Snow removal and landscaping | 10-15% | 12 000$ to 18 000$ |
| Electricity (common portions) | 5-10% | 6 000$ to 12 000$ |
| Professional management | 10-20% | 12 000$ to 24 000$ |
| Cleaning | 5-10% | 6 000$ to 12 000$ |
| Legal and accounting fees | 3-5% | 3 600$ to 6 000$ |
| Miscellaneous and contingencies | 5-10% | 6 000$ to 12 000$ |
Contribution to the contingency fund
Legal minimum under Bill 16: 5% of the budget. Recommended amount: based on the contingency fund study. In practice, contingency fund contributions often represent between 15% and 30% of the total budget for buildings that plan properly.
Steps for preparing a good budget
1. Analyse the previous year’s actual expenses
Compare the projected budget with actual expenses. Identify the items you underestimated or overestimated. This is the best basis for the following year.
2. Obtain up-to-date quotes
Do not automatically renew existing contracts. Request at least 2-3 quotes for:
- Insurance (compare every year!)
- Snow removal and landscaping
- Cleaning
- Any recurring service contract
3. Account for inflation
Costs increase every year. Apply an increase of 3 to 5% to variable items (maintenance, energy and materials). Condominium insurance premiums have increased by 10 to 20% per year in Quebec in recent years—take this into account.
4. Consult the maintenance logbook
Your maintenance logbook and contingency fund study are your best planning tools. What work is scheduled this year? Include it in the budget using realistic estimates.
5. Calculate common expenses
Total budget ÷ number of units ÷ 12 months = monthly common expenses per unit (if shares are equal). Note: shares may vary according to the relative value of each unit, as defined in the declaration of co-ownership.
Calculation example for 20 units
| Item | Amount |
|---|---|
| Insurance | 22 000$ |
| Maintenance and repairs | 18 000$ |
| Snow removal | 12 000$ |
| Common-portion electricity | 8 000$ |
| multiRent management (administration) | 6 000$ (25$/u × 20u × 12) |
| Cleaning | 7 200$ |
| Legal/accounting fees | 3 000$ |
| Contingencies (5%) | 5 000$ |
| Contingency fund (20%) | 20 000$ |
| TOTAL | 101 200$ |
| Monthly common expenses per unit | 422$/month |
Common mistakes to avoid
- ❌ Underestimating insurance: request a quote before setting the budget
- ❌ Forgetting the contingency fund: it is mandatory and essential
- ❌ Failing to budget for contingencies: always keep 5-10% for surprises
- ❌ Freezing common expenses to be popular: inflation exists, and the budget must keep pace
- ❌ Copying the previous year’s budget without analysing it
- ❌ Failing to consult the maintenance logbook when planning expenses
At multiRent, annual budget preparation is included in all our management packages. We analyse your expenses, compare quotes and present a clear, realistic budget at the annual general meeting. Discover our packages or contact us.
