A reserve study is a budget planning tool that includes:
- (1) A detailed evaluation of a property’s physical components
- (2) A financial analysis of its reserve funds
Why does my association need a reserve study?
To properly plan for the future
- A reserve study creates a schedule of when repairs need to be made and the costs associated with each component.
To preserve the property’s appearance and value
- Would you prefer to purchase and own an asset that is being properly funded and maintained? Is the asset you currently own properly funded to make the necessary improvements that will preserve its value?
To fulfill fiduciary responsibility
- Members of the board of directors have a fiduciary responsibility to their association and to properly plan for future capital improvements.
To comply with state law
- The State of Colorado (HB-1359) requires associations to have a policy on reserve studies, and many other states require reserve studies.
What are you doing to preserve your most valuable asset over the course of the next 30, 60 or 90 years?
THE FIRST STEP IS TO HAVE A QUALIFIED PROVIDER COMPLETE A RESERVE FUND STUDY
A reserve study identifies the useful life of common area elements, and provides a price for each element. This way you know when items need to be replaced and how much each will cost.
Structure with out a Reserve Study
Structure with a Reserve Study
Completing a reserve study for your structure is not only a smart thing to do, it is also an important step in achieving Sustainable Quality℠
We work with the board of directors, individuals, churches, commercial and residential properties
Your structure is deteriorating as you read this…What are you doing to prepare for the future?
George Washington’s house at Mount Vernon – An excellent example of how reparation, restoration, and preservation can sustain a structure for over 200 years.