The objective of a Reserve Study is to monitor the present status of a community’s reserve fund and account for its anticipated expenses. In doing so, a Reserve Study acts as a financial-planning system. By forecasting and then establishing the short-and long-term budgeting needs for your community, the Reserve Study evaluation works to ensure that adequate funds exist for the replacement or major repair of any component of the property as it becomes necessary, and it prevents the need for case-by-case special assessments.
In order to build a study that is the greatest value to the association, our Reserve Study employs a reasonable approach when evaluating your community. Our inspection goal is to determine the current condition, the remaining useful life, and the replacement cost of the community’s assets. Current industry developments and products are considered based on the merits they bring to the replacement decision. This means that we attempt to predict (based on the economics and the association’s objectives) the best value replacement. We also look at a reasonable funding approach. The association needs sufficient funds for anticipated expenses, but during these difficult financial times, it should not overly assess owners to build an excessive “war chest.” This long-term planning also benefits the yearly budget planning and maintenance decisions
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