There is a lot of organization involved when setting up a new community. Budgeting for reserves is not necessarily the first thing that new boards may be concerned with. However, the opposite effect of not setting up reserves properly can have lingering effects. Money that is not set aside is an opportunity lost to fund […]
Reserve Study Frequently Asked Questions Part 6
What are some of the most typical reasons that a reserve study would require revisions? A reserve study can require revisions for a number of different reasons. Some typical reasons may be that the reserve study had omitted a reserve item or certain group of items. It is also possible that the reserve study included […]
What Your Reserves Do
Reserve funds are the backbone of community associations. It is how they are able to pay for big ticket repairs and replacements. Funding reserves is advantageous to your association for several reasons: Keep Property Values Up The biggest reason why you fund reserves is they help maintain and increase property values. It is very difficult […]
Identifying Reserve Items
Identifying all of the reserve items in an association can be difficult. One of the most common budgeting mistakes that associations make is not getting all of the proper items on the reserve schedule. Condominiums For condominiums in Florida, Florida Statutes 718.112(2)(f)2, says that reserves must be established for capital expenditures and deferred maintenance of: […]
Reserve Study Frequently Asked Questions Part 5 – Florida Specific
Do I have to have a reserve study for my association in Florida? No. There is no part of statues 718, 719, 720 (condominiums, co-operatives, home owner associations, respectively) that mandates that associations get a reserve study. Not only do these associations not need a reserve study, but they can choose to waive funding of […]
Reserve Study Resources
Since reserve studies and reserve funding are a niche aspect of community association planning, finding information about their background and methodology can be difficult. There is generally a lack of easily accessible information about reserve funding on the internet or in books. The following list is some of the best information available on reserve studies […]
How to Make a Reserve Study Most Effective
It has been discussed before that the best reserve studies are a team effort. In order to make a reserve study most effective, it is important to thing of the different parts that go into them. List All of the Reserve Items One thing an association can do is to make a list of all […]
Reserve Study Checklist
When making a decision on who is reasonable candidate to perform a reserve study for your association, here are a few things to keep in mind. 1. Make sure the firm you select is truly in the business of providing reserve studies. Sometimes associations wind up contacting someone who can perform reserve studies, but does […]
Understanding Your Reserve Study
The first time you receive a reserve study, it can be a lot of information to take in. Sometimes the client can be surprised at the suggested funding amounts. This can be referred to as “sticker shock.” However, it is important to remember that this is the recommended amount. This recommended amount is not a […]
Most Common Reserve Funding Mistakes
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 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 […]