When planning long-term for your community association, one of the biggest factors that come into play is funding. It is quite costly to keep up with the many aspects that it takes to keep a community running and looking its best.
Yes, your structures in the community like the exterior walls or pool house may be strong now, but what about 10 or 15 years down the road? They are inevitably going to need a roof replacement or another type of maintenance. It is the association’s responsibility to take care of these repairs and other similar items that may pop up, so having the money on hand is key.
This is why a reserve study is absolutely necessary for a community association. Find out some of the key ins and outs of reserve studies and how they can help your community plan for the long term.
What is a Reserve Study?
Reserve studies are tools that are critical to the success of a community. They help plan and budget for future costs that a community will face down the road.
By focusing on a reserve study, association boards will be able to best understand what areas of a community are of highest priority. Reserve studies are helpful in preventing the potential liability of maintenance being done too late or not being done at all.
Sadly, many boards fail to do reserve studies or don’t let the process be handled by an experienced reserve study vendor. Don’t let your community association fall victim to failing to perform such an important task for your community.
How Often Should a Reserve Study Be Conducted or Updated?
The frequency of reserve studies varies by association and number of amenities, but, having one performed every 3-5 years should serve the needs of most associations. We recommend that your association hire a company that specifically works with reserve studies and help your community update its future needs each year.
After you have updated or created your reserve study you will find that your duties of directing investments will be much easier. This is because you have it all planned out to match with a specific timeline.
Items to Include in Reserve Studies?
Having a clear understanding of what items go into your reserve study is key. Identifying what your association’s large expenditure items are and how often they need to be maintained is the basis of reserve studies.
Think about examining:
- Planned repairs
- Replacements of common area facilities
- Construction projects
- Maintenance costs
- Disaster reserves
Goodwin & Company Will Conduct Your Efficient Reserve Study
Let Goodwin & Company step in and help you plan your long-term budget. While we worry about your budget, you can spend the needed time to take care of your community. Get in touch with Goodwin & Company today to find out more about our community management services.