A Homeowner Association (HOA) always strives for the best for their community. This means that they’re constantly upgrading and making changes. However, a reserve study is one of the most significant improvements for every homeowner association.
Understanding what this is and why it’s so important will help you be able to explain to your board of directors why you need one, instead of reiterating how important it is to have this in place.
What is a Reserve Study?
A reserve study is a report that estimates the funds that will be needed for all major maintenance and repairs to your community’s common areas, including the roofs, the roads, and the grounds.
It’s not only important to make sure that you have enough funds to cover the costs of scheduled repairs and replacements, but you should also have enough funds to make non-scheduled repairs and emergency repairs.
Why is a Reserve Study Important?
A reserve study brings together all maintenance and repair costs, including new projects that need to be completed, into one document. It’s not a one-time achievement, and then the rest is all downhill!
It’s good to re-evaluate the reserve study every couple of years so that you have an updated idea of what your HOA needs. For example, if you have a new roof or major road project, it will affect the total amount of your reserve.
A reserve study is also a valuable tool for selling homes in the community. If a potential buyer can see that your HOA has a good reserve study and that there is money to make necessary repairs, then the home will sell sooner and for more money.
It’s also essential to have the reserve study when the HOA is trying to obtain financing of any kind. It helps to show the lender that there is a good chance that the HOA will be able to meet its financial obligations.
How to Do a Reserve Study
Look for a reserve study company with several trained engineers who have industry accreditation.
The company should have a good reputation with homeowner associations and should be able to explain the reserve study process to you.
It’s also important to choose a company that has experience with other associations similar to yours. This will help ensure that the reserve study will be done accurately and with the information that you need.
A reserve study is an important part of being a homeowner association. It will give you peace of mind and allow you to move forward with a plan for your home and community.
A reserve study is a valuable tool that is a must-have for any homeowner association. With a reserve study, you have a better idea of the day-to-day and unexpected repairs for your home and community. This means that the association can keep things running smoothly. It’s important to find a reputable reserve study company so that you can have a quality study. Always choose a company that has experience in your field and will work with you closely to make the study accurate.
For reliable California reserve study services, you need to look for the best. California Builder Services aim to build lasting client relationships through our outstanding service and expert knowledge. Request a proposal today.