Great Advice For Interpreting The Reserve Study On Your Homeowners Association Website
The first order of business is to learn and understand why a homeowners association has a reserve study. Most of the time, the homeowners association website will inform you that the reserve study lists every major component in the community that eventually needs to be repaired, replaced, or requires some maintenance. This is assembled by performing a visual inspection of the landscaping, roofing, and other significant assets in the area.
Such visual inspections are typically performed every three years, though an annual review is also necessary to make funding adjustments. These type of lists are only effective if they are generated by a professional that has expertise or experience with managing funds in homeowners association.
In order to get a complete understanding of the figured outlined in the reserve study, it’s essential that you review it annually. For instance, if you decide to replace the roof of a building, you need to know the exact amount that will cost so you know the funds that need to be collected to reach the target amount. This is one reason why annual reviews are necessary and this information is posted on the homeowners association website.
Calculations should be kept unbiased and that can be done by ensuring everyone contributes their fair share even if some homeowners association residents intend to depart the community before costly repairs are completed. Though reserve studies can be complicated, they are crucial towards shaping the community’s future so remember this advice when interpreting a homeowners association reserve study.