Repair fund and working-capital fund: manage them correctly
The difference between the working-capital fund and the repair fund in a homeowner association, how they are funded and how to report transparently.
In condominium management, the working-capital fund covers operating costs (utilities, services, management fees), while the repair fund (or major-investment fund, per assembly resolutions) is for capital maintenance and upgrades.
Mixing the two without resolutions and separate ledgers is a classic conflict source. Law 196/2018 and good practice require owners to see balances and the use of funds. The payment list must clearly show shares by fund type.
Plan for 12 months: estimate consumption, fixed contracts, mandatory revisions (e.g. lift ISCIR) and an emergency buffer. For major works (waterproofing, risers, stairwell rehab), the assembly approves the budget and, if needed, the tender process.
Digitisation helps reconciliation: every payment linked to a ticket or contract, every invoice archived, every monthly report in seconds. The president can verify without waiting for a spreadsheet on WhatsApp.
Bottom line: separate the funds, document every movement and post a monthly summary on the noticeboard (physical or digital). Owner trust rises when the numbers are visible.