Living in an association requires diligent financial management. The financial management has two distinct parts: the short term and the long term. Every year associations have to prepare a budget. Most of the line items in the budget are for ongoing operations and maintenance. Examples of these are tree-trimming, grass cutting, professional fees, insurance, etc. […]
The Team Effort of a Reserve Study
Reserve studies require input from multiple people to be their most effective. To get the maximum benefit from a reserve study, multiple parties should be involved: the reserve analyst, the property manager, and board members within the association. Each of these parties brings unique skills and knowledge to the process that can make the report […]
Who is Qualified to Perform a Reserve Study
Reserve studies are reports that show funding models to communities to estimate and provide for the funding necessary to repair or replace components of common areas as they wear out. These reserve studies may be performed by a number of professionals with varying backgrounds. Currently, there is only one state, Nevada, which requires licensure through […]
Reserve Study Site Inspection Overview
Reserve studies have two main components to them: the physical analysis and the financial analysis. This article focuses on the physical analysis which is also called the site inspection. The site inspection can range from detailed to extremely detailed. The length of the site inspection will depend on how many reserve items are being analyzed. […]
The Value of a Reserve Study
One of the most important facets of long range community planning is funding reserves. Reserves are the monies collected for long term capital projects within the community. Reserves can be difficult to project because there is a fair amount of uncertainty in projecting how long something will last and how much it will cost. One […]
Create a Reserve Study Yourself in 5 Steps
Reserves can be one of the most challenging aspects of putting together a budget. Some communities are very thorough with their reserve analysis, while others may not be as diligent. Attempting to estimate the amount of the reserves your community needs depends mainly on the size of your community and the amount of common area […]
The Life of a Reserve Study
We believe that reserve studies are an essential part of property management. People and property are constantly changing and evolving. As a result, the useful life of a funding study is at best a few years and certainly not more than five years. How long a reserve study will stay effective depends on several things: […]
Why You Should Fund Reserves
In Florida, it is not required for associations to fully fund reserves or fund reserves at all for that matter. Many older associations never set up reserves and would just issue a special assessment to their members when it came time to repair a capital item or asset. Most Equitable Way to Do Things This […]
Information to Give to the Reserve Study Analyst
A reserve study is a document that synthesizes a lot of information about a community association into one 25-100 page financial report. To issue a credible report, the reserve analyst needs to receive some background information from the association. A reserve analyst will benefit from as much information about the community as possible. The more […]
Why Percent Funded of Reserves is so Important
When reviewing a reserve study, there is a lot of information to comprehend. Important measures to note are the yearly funding totals and the fee per unit per month. Maybe the most noteworthy number to look at, however, is percent funded. Percent funded is a percentage that measures the overall health of an association. Percent […]
When Is It Time for a Reserve Study?
Reserve studies are becoming more and more common as a part of the budget planning process. Reserve accounts are generally large and reserve studies serve as a key financial tool for the association. They help for the upcoming budget as well as serving as a road map for future years. Your association may be wondering […]
Partially Funding Reserves Leads to Special Assessments
When budget season comes around, expenses seem to keep adding up. There might be some temptation by members of the community to take a shortcut to save some money. One possible idea is to only partially fund reserves. By Florida statutes, members of an association do not have to fully fund reserve accounts (you have […]