What is a Condo
Reserve Study?
A condo reserve study tool is a tool created to help condominium associations understand which parts of the condominium they are responsible for. The condo reserve study helps evaluate the components of the condominium, how long they are expected to last, and the funds required to repair or maintain them.
It helps condominium associations plan their finances with confidence before unexpected expenses arise. A reserve study for your Condo helps you not to fall into the routine expenses trap, but prepares you wisely for all the future expenses and also saves you from hitting residents with unexpected special assessments.
Who Needs a Condo Reserve Study
Condominium Associations:
Any condominium association, whether big or small, with a shared community, requires a reserve study plan to protect itself from unexpected future expenses.Condo Board Members:
Board members of a condo hold a major financial management responsibility for the condominium. A Condo reserve study plan is required to plan them according to the Condo's needs.Property Managers
Property managers also require the condo reserve study to plan accurate budgets and keep the board members informed about the condo reserve funds on a year-to-year basis.High-Rise and Mid-Rise Buildings
larger and smaller high-rise and mid-rise buildings, especially require the condo reserve plans to maintain the mechanical systems, such as elevators and parking structures. Condo reserve plans also help them identify risks before they occur.Newly Converted Condominiums:
Condominiums converting from rental to ownership require the condo reserve study to accurately baseline components before beginning the conversion.Not sure if a condo reserve study applies to your association?
Contact our team, and we will be happy to assist you!
Is Your Condo Association Financially Prepared for all this?
- Challenge 01Aging building systems in a condocondo buildings have complex systems, including elevators, roofing, plumbing, etc. Without a combo reserve study, the board cannot assess which component of the Condo needs maintenance in the near future. This results in an underestimate of the funds required for these repairs and management.
- Challenge 02Lesser-funded condo reservesmost of the condo associations start without a reserve study, which results in underfunded Condo reserves. So, when any component requires maintenance, the board has fewer funds for maintenance and repairs.
- Challenge 03Unexpected special assessmentswhen the maintenance cost is not estimated, most of the cost is borne by unit holders through emergency assessments. A proper reserve study plan is required to solve the issue.
- Challenge 04Weak annual budgets based on estimateswhen a condo association does not use a reserve study plan, the financial budget is based on estimates without proper evaluation of the site and each component. A condo reserve study is required to make an accurate annual contribution plan for each year.
What is Included in Our Condo Reserve Study
- Physical AnalysisComponent inventoryIn the condo reserve study, we document each component of your Condo that the association is responsible for maintaining. In addition to documentation, we also document the costs of repair, maintenance, and replacement for each component of a condo.
- Physical AnalysisCondition assessmentWe evaluate the Condo onsite and prepare a comprehensive report detailing which areas of the Condo need repair. Moreover, we prepare an evaluation report on the current condition of all components.
- Financial Analysis30-year funding planUsing the physical data gathered through the on-site evaluation, we help you plan the complete financial budget for repairs and maintenance of each Condo. You will receive a full-year budget plan and insights into reserve funds required to meet your financial goals.
Choose Your Condo Reserve Study Service Level
- Most popularFull Reserve Study
Complete physical and financial analysis withon-site inspection.
- On-site inspection by a designated Reserve Specialist
- Full component inventory and condition assessment
- 30-year funding forecast with contribution recommendations
- Complete written reserve study report
- UpdateWith Site Visit
For an association already connected to the reserve study:
- Return on-site inspection
- Updated component inventory and condition ratings
- Revised 30-year funding forecast
- Complete updated written report
- UpdateWithout Visit
If the recent inspection has been conducted and recorded, an updated financial plan without the inspection will be provided.
- Review using already available data
- Updated financial plan
- Revised 30-year financial funding program
- Updated written record.
- Package3-Year Plan
For associations that want consistent, ongoing reserve oversight without the hassle of rebidding every year.
- On-site inspection
- Component inventory
- 30-year forecast
- Full written report
Sample Reserve Study Report
the association’s financial and physical standing —
simplifying reserve planning in one easy to understand
document.
Benefits of a Professional Condo Reserve Study
Protect unit holders from unexpected special assessments
when your condo reserve fund is fully planned, the likelihood of such assessments is lower.Know exactly how much to keep aside each year
Through a condo reserve study, your association plans how much in reserves is needed each year for unexpected expenses.Maintain condo value and marketability
When repairs and management are done properly, they positively impact condo value and marketability.Meet all lender and legal requirements
Most mortgage lenders require evidence of condo reserves before approving loans. Condo reserve study helps you meet these requirements.Make confident, long-term decisions for your Condo
A 30-year plan helps you plan confidently and effectively.
Don't just take it from us
We focus on the
detail and the big
picture.
with the insight needed to make fast, accurate and
informed decisions — focused on understanding your
situation and providing funding solutions designed with
your goals in mind.
- Experience
Deep expertise
We possess a deep expert team with working experience with several condo associations - Quality
Accurate reports
Through our rigorous inspection methods, we provide the most accurate reports - Clarity
Clear guidance
We provide simple and easy-to-understand guidance - r Plan
For associations
In search of consistent, ongoing reserve oversight without the hassle of rebidding every year.
Frequently Asked Questions
What is a condo reserve study?
A condo reserve study provides you with a financial plan that evaluates each component of your Condo. The reserve study includes each part of the Condo and provides an estimation of the finances required for the maintenance and repair of the component on a year-to-year basis.
What is a condo reserve fund, and how does it work?
A condo reserve fund is a special financial account into which funds are set aside for the coming year's unexpected repairs, maintenance, and replacements required for a condominium.
How much should a condo association have in reserves?
The right number of condo reserves is estimated through the condo reserve study. However, most conditions recommend maintaining a funded level of at least 70 percent, with 100 percent funded as the healthiest target.
How often should a condo association update its reserve study?
The standard update time for the condo reserve study is 3 years. It helps to get the update once the analysis of repairs and maintenance costs based on the updated markets is complete.
What does a condo reserve study cost?
The condo reserve study cost is based on the size and the condition of the condominium.
Is a reserve study required for condo associations?
This requirement varies from state to state. However, in most states, the condo reserve study plan is compulsory as part of the condo association's financial plan.
What does a reserve study for a condominium include?
A condo reserve study plan includes 3 components: first, the inventory budget analysis; second, the evaluation of the site and all components of the Condo. Thirdly, preparing a financial plan for the Condo's needs for next year.
If you have any questions, our team of reserve study professionals will contact you immediately.
Benefits of a Professional HOA Reserve Study
Better financial planning
Less guesswork and more information to help with planning.Avoid special assessments for residents
Fewer surprises for residents and improved transparancy for Boards.Maintain property values in the market
Better values for properties with fully funded financial reserve planning.Accurate annual financial budgeting
Set contributions and budget with confidence.Long-term cost control
30-year projections, giving full financial control and strategic insight over the short to long term.