Reserve Contribution Benchmark

82% of community associations are underfunded at the time of their reserve study. The following statistics represent, by type of property, the percent of associations that are underfunded at the time of completing a professional reserve study.

Insufficient reserve funds increases the risk of deferred maintenance.

Proper reserve funding is critical to reducing risk, minimizing costs and keeping your residents safe. Underfunded communities frequently struggle with deferred maintenance, which can impact the following:

Why a Reserve Study?

A board of directors has a fiduciary responsibility to protect, maintain, and enhance the assets of the community association they serve. Properly funded reserves gives the board the financial resources it needs to ensure community upkeep. A professional reserve study illuminates the true cost of maintaining common property; helping associations establish appropriate annual assessments that support the long-term costs of maintaining common property.

Cash Flow Chart

How does your community’s current reserve contributions compare to your peers?

Complete the reserve contribution benchmark form below to see how your annual reserve contributions stack up to similar communities near you.

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