Why Two Identical Buildings Can Need Very Different Reserve Fund Contributions

We live in identical buildings - why are our reserve contributions higher?

On the surface, the question seems reasonable. If two buildings look identical and were built at the same time, logic suggests their financial needs should also be similar.

We have a number of strata clients in this exact situation - multiple building developments where each building is more or less identical, yet is a separate strata corporation. 

Each building shares the same design and finishing, year built, materials and was constructed by the same developer builder. 

Yet each strata is individually managed – each with a separate council and sometimes by differing management companies.  Each and each council brings its own preferences and priorities with respect to repairs, maintenance, and operation. 

So in practice, that assumption is often wrong. And relying on it can lead to underfunding, surprise special levies, or false confidence.

Age and design are weak predictors on their own

Year built, unit count, and construction type are useful reference points. They are not reliable predictors of long-term reserve fund needs by themselves.

Two buildings can share the same drawings and still experience very different rates of deterioration. Reserve fund planning depends less on what was built and more on what has happened since occupancy.

Exposure, maintenance behavior, and decision-making all reshape lifecycle outcomes over time.

Maintenance timing changes everything

Early intervention almost always costs less than deferred repair. This sounds obvious, yet it is consistently underestimated.

One strata replaces failing sealants early. Another defers for budget reasons. The second strata does not just pay a higher future repair cost. It also absorbs inflation, secondary damage, and shortened component life.

Those differences compound across multiple building systems. Over time, they show up as materially different contribution requirements.

Environment and location matter more than councils expect

Two buildings can be separated by only a few blocks and still face different exposure risks.

Or in the case of a waterfront site, the more exposed building is subject to higher prevailing wind, salt air, etc.  Differences in solar exposure, drainage conditions, slope, and surrounding vegetation also affect how quickly components deteriorate. Coastal and island environments amplify these effects.

This is why identical materials often perform very differently across Vancouver Island and coastal British Columbia.

Construction execution is not the same as construction intent

Plans and specifications describe intent, not reality.

Even with the same developer and contractor, differences in sequencing, weather during construction, workmanship, and quality control influence long-term performance.

Reserve fund studies must plan for observed condition and risk, not assume best-case construction outcomes.

Governance and decision history shape financial outcomes

Strata councils make hundreds of small decisions over time.

Maintenance deferrals. Inspection timing. Budget pressure. Turnover of volunteers. Short-term affordability concerns.

Each decision on its own may seem minor. Collectively, they shape reserve fund health far more than most owners realize.

Two identical buildings with different decision histories will not age the same way financially.

What strata councils should take from this

If your building requires higher reserve fund contributions than a similar one nearby, that is not automatically a problem.

It is information.

Strong reserve planning focuses on condition, exposure, and risk, not comparisons or appearances.

The most reliable question is not “Why are we different?”

It is “What has our building actually been through?”

What is the Takeaway?

Identical buildings do not guarantee identical outcomes.

Reserve fund contributions are not a judgment on the past. They are a tool for managing the future with clarity and confidence.

Need Help?

We have been providing clear, effective and readable Depreciation Reports throughout Coastal British Columbia Since 2012. Connect with our team any time for more information and a proposal.

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