Reserve studies made for disclosure
One of our main objectives when completing reserve studies for HOA communities is to create a document that is all about disclosure to the membership; outlying what the HOA is responsible for (as is described to us), and approximately when, and how much the reserve project will be. How does a community budget for reserves projects before they know even what they own and approximately when the projects should be funded for; the simply answer is they don’t.
HOA Reserve Studies Done Right
Extensive site inspections
First, we start by finding out what the HOA owns and who is responsible for what. That way we can complete an extensive site inspection to take an accurate and appropriate inventory of everything from asphalt roads to irrigation pipes to fencing to pole lights and the list goes on.
This process typically starts with our Reserve Analyst meeting with a Board Member or Property Manager to go over the community boundaries and a question-and-answer discussion regarding who is responsible for what we see on site.
We feel our reserve study component list is the most thorough in the business.
Knowledge is power
In this business there is no such thing as too much information. Whatever you can provide the Reserve Analyst with respect to prior projects dates, prior project costs, recommendations from your vendors or engineers can and should all be considered and incorporated in the reserve study when appropriate.
A huge advantage of an independent reserve study is that this can be a reliable document to make reserve budgeting decisions on through changing Boards and changing Property Managers. Frequently information does not get passed from one person to the next so having a stable independent document can be a huge stress help.
Comprehensive Reserve Studies You Can Rely On
Creating comprehensive reserve studies for our clients is why we are in this business. Most community board members have little experience related to the cost and timing of reserve projects in their HOA communities. But that is OK because we have plenty and are eager to share our experiences and knowledge. What appears to be a confusing landscape of all types of site projects to us is just another day at the office.
Common HOA Components We Encounter
Recreational Components
Recreational components such as pools, playgrounds, trails, BBQ and picnic areas, sports courts, recreational buildings, community parks are all common HOA reserve projects that we encounter daily. These items all can add significantly to a community's market appeal but equally detract from the appeal when they begin to suffer deferred maintenance.
Asphalt & Concrete Surfaces
Often the largest expenses we see in our HOA reserve studies are reserve project related to asphalt and concrete walkways & sidewalks. The most common budgeting mistake we see is pushing out asphalt projects, thinking the resurfacing can always be done later. The reality is asphalt which deteriorates too much, will need to be replaced at a much higher cost.
Irrigation & Storm Water
Out of sight is often out of mind but significant expenses related to buried or hidden reserve components, such as irrigation piping, have a significant impact on reserve accounts as communities age. We include these longer life components in our reserve studies so that you can make more informed decisions about reserve budgeting.