- Maintains higher property values. By ensuring that funds always exist to keep a
community’s assets maintained and functional, the value of the community maintains
better resale value.
- Promotes resales and lenders’ acceptance.Today’s purchasers and
lenders are closely examining an association’s finances before making
commitments. A strong Reserve Study and adequate reserves illustrate an
association’s financial health and endurance.
- Reduces special assessments. Using a Reserve Study to aid in medium- and long-range
planning greatly reduces the need for special assessments. This assists personal financial
planning and reduces the uncertainty and fear of ownership.
- Fulfills the board’s fiduciary responsibility. The association’s managing trustees
or directors are legally bound to exercise prudent and sound business judgment in
administering the financial and daily business of the association. This means planning
- Identifies problem areas. By highlighting items that need immediate attention or
routine maintenance, a Reserve Study extends useful lives and minimizes costs. An ounce
of prevention is worth a pound of cure.
- Implements a pay-as-you-go process. By assessing the correct reserve amounts now,
you are asking the people receiving the benefits of the amenity/asset to contribute only
toward the useful life extracted during their enjoyment. Current owners are not assessed
for what previous owners did not pay.