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 […]
What Role Does Inflation Play in Reserve Studies?
Inflation is generally defined as the rise in the cost of living. Regarding reserve studies, inflation is probably the most variable or speculative component. Even when a reserve analyst is preparing a report and has a good handle on current costs for reserve items, he has no control over predicting future inflation. Inflation can vary […]
How to Get the Most from a Reserve Study Update Report
We recommend getting a reserve study report updated every 3 years and certainly not any more than 5 years. It also advisable to get one sooner if there has been changes to the property or membership base. Reserve studies are meant to be a useful planning tool that reflects the long term assets of the […]
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 […]
Which Type of Reserve Study Do I Need?
Sometimes we are asked the question “which type or reserve study report do I need”? The answer to this question can range from easy to more complicated. The National Reserve Study Standards endorses three different types of reserve study reports. All reports, at a minimum, include life and valuation estimates, fund status, and a funding […]