What is the function of the operating funds in a condominium?

The operating funds in a condominium primarily serve to manage regular, recurring expenses associated with the day-to-day operations of the property. These funds are essential for covering costs such as maintenance of common areas, utilities, salaries for staff, and other routine expenses that arise during normal operations. Having a well-managed operating fund ensures that the condominium can maintain its facilities, provide services to residents, and keep the property in good condition.

Different categories of funds exist in a condominium's financial structure, such as capital reserves or special assessments, which might fund major repairs or unexpected costs. However, the specific function of operating funds is focused on the ongoing costs necessary for maintaining the community and providing a comfortable living environment for residents. This distinguishes operating funds from other potential functions like addressing legal issues or covering insurance claims, which are managed through different financial mechanisms or reserves.