1. Not getting the proper reserve items on the reserve schedule. This is the most common mistake associations make when budgeting for reserves. They unknowingly omit some items that should be on the schedule. Most associations are aware of roofing, painting, and paving requirements, but some items that are not often thought about are the hidden […]
Reserve Study
Reserve Study Frequently Asked Questions Part 4
Where do the cost estimates come from? The cost estimates come from various sources. However, Marshall Swift cost data services is generally thought to be the most comprehensive data service. We also use the National Construction Estimator. Additionally, if an association has a recent construction bid to perform a construction project, we will use that […]
Reserves Budgeting: Do’s and Don’ts
With budget season approaching, here is a quick list of reserve budgeting dos and don’ts. Dos: Look at your reserves yearly. Some associations just reuse old numbers that are not realistic and are not based on proper data. Try to get the proper reserve items on the reserve schedule. One of the most common mistakes […]
Should We Do Reserves In-House?
Now that budget season is approaching, many boards are considering what they should do for their reserve allocations in their budget. There are a couple of options. The first is to calculate reserves in-house by members of the board or the association. The second option is to get a professional reserve study for the association. […]
Reserve Study Frequently Asked Questions Part 3
What is a Reserve Specialist (RS)? A reserve specialist is someone who prepares reserve studies that has earned the RS designation through the Community Associations Institute (CAI). CAI is the largest organization in the country that specializes in all aspects of community living, more specifically condominiums, co-operatives, and home owner associations. To earn the RS […]
Reserve Study 101
A reserve study is a budget planning report for HOAs, condominiums, co-operatives, community development districts (CDDs), and other associations. The reserves are the long lasting common elements that need to be replaced in community associations. In essence, a reserve study can be thought of as a road map for a community to have an idea […]
Reserve Study Frequently Asked Questions Part 2
What amount of reserve funds are adequate? This may be the most common question we are asked. However, there is no universal answer. The amount of money that an association should have at the present time depends on many things: the age of the community and/or reserve items, how soon reserve items will need to […]
There is No Typical Reserve Study
One question we frequently encounter is what type of reserve contributions is typical? This question has no easy answer because associations and their funding are so vastly different. Different Property Types Along the same lines, the scope of work for each assignment can differ greatly because there are so many types or sub-types of associations. […]
Why I Do Reserve Studies
There are many reasons that doing reserve studies for community associations are enjoyable, satisfying and interesting. They’re All Different Every association is different, with different assets, different ages, and different levels of funding. It is never boring to see a new community. It is fun to get to look at the different types of real […]
Reserve Study Frequently Asked Questions
Why should we hire a professional to perform a reserve study? In short, reserve analysts have access to all of the necessary resources to complete an accurate analysis of your reserves. They also have a thorough knowledge of the inner workings of community associations such as an HOA, condominium, or co-operative. Due to their continual […]
Who Benefits from a Reserve Study
Reserve studies are a great tool to project reserve item quantity sizes and future costs. They contain detailed information about the association’s long-lasting capital reserve items—things like roofing, painting, paving, clubhouses, recreation areas and various other items. Reserve studies project how long an item will last (useful life), how long that item has before it […]
Determining the Useful Life of Reserve Items
When forecasting the useful life of a reserve study item, there are many factors that come in to play and different methods to predict the useful life. Useful life depends on climate, usage, maintenance, and judgment. A reserve analyst may use one of the following methods or a combination of them to forecast the useful […]