Reserve studies are an essential part of property management, especially for larger community associations. Many communities get them performed and rely on them for the long-term planning part of their budget. Nevertheless, some communities are reluctant to have one done. The following are five myths regarding reserve studies. Myth 1: Reserve studies are too expensive […]
Reserve funding mistakes
Why Some Owners Don’t Want to Properly Fund Reserves
Reserves can be the most challenging part of the budget to board members. It is essentially setting money aside that will not be used right away or even for many years in some cases. Additionally, it can be difficult to determine how long something will last and what it will cost to replace. Some communities […]
Why Some Associations Hesitate to Get a Reserve Study
Associations can be reluctant to get a reserve study for a number reasons. There can be a general misunderstanding of what a reserve study does and what it accomplishes. Here are some of the most notable reasons community associations hesitate to get a reserve study: We Can Do It Ourselves This sentiment is pretty common. […]
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: […]
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 […]