A Reserve Study is an in-depth evaluation of a property's physical components and an analysis of its reserve funds. Based on a thorough on-site inspection, a Reserve Study details anticipated replacements or repairs to common-area elements and recommends annual reserve funding to cover capital expenditures for the next 30 years.
Ideally, all future reserve item expenditures will be covered by those funds currently set aside avoiding the need for Special Assessments. Reserve Studies serve as a continuous 'blueprint' for the future of the property to keep the association current and on track.
The reserve allocation makes up a significant portion of the total monthly dues. A Reserve Study provides the essential information that is needed to guide the Board of Directors in establishing the budgetary decisions for running the future and daily operations of their community.
Reserve Studies Should Be Done On:
- Home Owners Associations
- Houses of Worship
- Assisted Living Facilities
- Planned Unit Developments
- Vacation Ownership Resorts/Timeshares
- Community Centers