Both our comptroller (the managing agent's accountant) and independent account say that a reserve fund equal to 3 months' maintenance is a good goal. Mind you, that's a minimum goal. Certainly, 6 months' worth is fantastic.

With lots of extra money you can pay capital improvement bills up front; you can invest it (wisely & safely!!!) to earn more interest than a savings account; you can pay down principal of your mortgage; if you're truly flush you could even give some back to shareholders (with, say, one month without a maintenance fee).

Before you do any of those, however, be sure you run it by your accountant(s), your lawyer, your managing agent, and of course your fellow board members!

Steve