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RESERVE STUDY
A reserve study looks at a property and its reserve account and analyzes all
foreseeable capital improvements and repairs. For example, if your community has
a clubhouse with a roof that needs to be replaced every 10 years, the reserve study
will advise how much and how quickly your association needs to save to make the
repair at the appropriate time.
Typically, reserve studies are comprised of two parts:
• Physical Analysis: Evaluates the physical status of the association and
estimates the repair and replacement costs of the major common area
components.
• Financial Analysis: Assesses the current reserve fund status and
recommends an appropriate reserve contribution rate.
Because reserve studies are so complex, it's recommended to hire a qualified and
experienced Reserve Specialist or Reserve Analyst to conduct a reserve study.
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