Reserve Studies for Condo Associations

How can your condominium protect, preserve, and enhance property values with proper replacement reserves?

By partnering with MillerDodson and allowing our 30 years of experience in financially sustainable solutions for capital replacements to work for you.  Your condo can benefit from our expertise and skill!  See below for the information you need to make an informed choice about getting a reserve study done.  We even have a sample report for you to view so you can see just what you will be receiving when you get to the end of the whole process.

Still have questions, contact us here. Ready to request a free proposal, begin here.

Key Points for Key Points for Condo Associations

Why must your community establish and maintain a Replacement Reserve fund?

“One of the primary business duties of community associations … is to maintain and preserve the property values of the residential units and the common property. The replacement reserve fund has a tremendous impact on an association’s future, regardless of age, size or architectural type of the development.”*

1. Fulfill the ethical standards of financial stewardship for the facility. The leadership has the obligation to maintain the facility in a manner that ensures the long-term generational transfer of the facility and its components. The systematic establishment of Reserve Funds can help in meeting this obligation.
2. A Reserve Fund provides for the planned replacement of major common items. Members expect their facility to fulfill its obligations to replace worn or obsolete items. This allows for the aesthetic and functional qualities of the facility to be maintained.
3. Ensure the financial health of the facility. Anticipating the financial needs of your facility allows for the allocation of proper replacement funding early in the life of the facility and facility’s components.
4. The institution’s governing authority may recommend a Reserve Study. In some cases the governing authority may encourage or recommend performing a Reserve Study for each of their facilities.
5. Long-term financial forecasting for the replacement of capital assets allows for the strategic planning of donation and funding drives, and reduces the need to find emergency funds by donation, loans, or other means.
6. Reduce the burden and pressure on your biggest contributors. As we all know, some are able to give more than others. And those who do give, often give even more when asked. Planning for the replacement of capital assets allows the funds to be allocated within the annual budget, and reduces the need to ‘hit up’ those who already give the most.

* A paraphrased excerpted from the Community Association Institute’s Guide for Association Practitioners #24.