It is a requirement under Real Estate Regulatory Authority Bahrain (RERA) for Owners Associations to maintain two bank accounts: an operational account and a reserve account, ensuring proper financial planning, transparency, and regulatory compliance.
A reserve fund is essential to cover long-term, non-recurring expenses—such as lift replacements, major repairs, or capital upgrades—ensuring the property is properly maintained and protected over time. It helps preserve property value, avoids unexpected financial burdens on owners, and supports the long-term sustainability of the community.