What is a Reserve Study?

A Reserve Study is a budget planning tool used to identify;

    
  1. Current status of the Reserve Fund, and a
  2. Funding Plan, both stable and equitable, to offset the anticipated future "major common area expenditures".
A Reserve Study consists of two parts:  
Physical Analysis - determines an objective forecast of capital replacements or repairs including cost estimates which incorporate inflation.
Financial Analysis - recommends adequate annual reserve contributions to fund future capital expenditures for the next 20 to 30 years which incorporate interest earned on reserve balances.
   
A Reserve Study becomes your long range property business plan to provide continuity and dependability for current and future Boards for years to come.