Setting up a sinking fund

ridpath

Hi everyone,

I live in a converted house, split into four flats. Myself and one of the other owners want to set up a small sinking fund to cover repairs and routine maintenance. One of the other owners is dead-set against it and claims it's expensive and time consuming to administer, he currently administers the house management company which essentially is a mechanism for ad-hoc repairs and the building insurance. This means we get stung for large bills and owners in the past,keep putting off work till they move meaning it usually cost more to remedy.

Most of the houses in this area have sinking funds in place and it's not exactly unusual, I find it hard to believe it's that complicated! Does anyone have experience of running a sinking fund? I've had a good Google search, but it's surprisingly difficult to find some hard facts. Also, it it possible to pay an account to administer it at a reasonable cost?

Thanks.

keystone

What abject nonsense. Surely the cmpany has its own bank account? All thats necessary is to make the correct entries in the books as to what belongs where when you each pay our monthly contribution. If its that difficult to keep it separate in the company's books then all he has to do is open another bank account into which the money iis paid and record it completely separately until its needed then a simple transfer allows money to be released for payments. Its not time consuming extra half an hour a month at most and its certainly not expensive - he/she is just being lazy.

Suggest that someone else takes over the administration of these matters if its too difficult. The cynic in me says I should bet that it suddenly becomes very easy to accommodate.

Are the accounts for the company regularly and thoroughly audited?

Cheers