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 […]
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 […]