The benefits of a reserve study are too important to ignore

  • Property values are directly affected by the level of maintenance and upkeep of the common area components. Reserve studies create a maintenance plan, which keeps a development in good condition, therefore increasing property appreciation and value.
  • Provides inventory of common area components and a schedule for their repair and replacement
  • Assists board of directors and managers in fulfilling their legal and fiduciary duty to maintain the community in a good state of repair.
  • The amount of funds in the reserve account also greatly affects property values. Reserve studies inform CID’s exactly how much they should have in their reserve account.
  • Prospective buyers require a current reserve study before they consider buying into a community.
  • Lenders require a current reserve study before they will give a loan to someone buying into an association
  • Reserve studies eliminate costly special assessments.
  • Reserve Studies can help avoid litigation against CID board members and property managers.
  • Reserve studies assure each member of a CID contributes their fair share to the reserve account so when expenses arise the required funds are available.

It’s very important to recognize the important benefits of a reserve study so you can make informed decisions about your financial future. If you have not gotten one yet you should really consider it now.