Without an updated reserve study on hand, how can you know if you are adequately prepared for when your infrastructure fails? How will you ensure that your building and common area components will continue to function and serve your community members indefinitely? It’s important to be able to answer these questions with confidence in order to protect your community from financial risk.
And yet, a reserve study is not enough on its own.
Without an up-to-date reserve analysis and a strategic plan, many capital improvement projects either fall short or are underfunded, leading to expensive charges to the homeowners in the form of special assessments.
See, the reserve study’s job is to help you set the amount of the reserve contributions in your budget. But that is based on a single moment in time. It doesn’t update when you perform (or put off) preventive maintenance tasks. It doesn’t update when replacements are made to key components. It doesn’t update when inflation causes capital improvement projects to balloon to ever higher costs than you planned for.
The Living Reserve Study™ does.
The Living Reserve Study™ provides boards of directors with a framework to plan for the future. The Living Reserve Study™ helps boards of directors find ways to balance short-term needs and long-term objectives through an assessment of current reserves and expenditures, as well as an evaluation of opportunities for additional revenue streams that could help stabilize your community’s finances in times of uncertainty.
Start your Living Reserve Study™ today
