The cost of a reserve study is typically very small when you consider the annual budget of an association and the cost of maintaining their reserve components. An average townhouse condo association of 100 units could have an annual budget of $500,000 and reserve components who’s repair and replacement cost are between $750,000 and $1,500,000. Their reserve study would likely only cost somewhere between $300 and $1,600 dollars. This is a very small price to pay to make sure that the association is saving enough money to maintain their reserve components and prevent deferred maintenance and decreased property values.
There are a few factors that determine the cost of a reserve study. The first is what type of study you need. There are 3 types of reserve studies. (For details see Types of Reserve Studies). A level III study without site inspection is the least expensive type of study because it does not require a site inspection. The cost of this type of study is typically between $250 and $500. A level II study will cost more than a level III because it includes a site inspection. A level I reserve study with site inspection is the most expensive because it includes a site inspection and measurement and quantification of the reserve components. Level I and II studies typical cost somewhere between $600 and $1,800.
Other factors that determine the cost of reserve studies are the number of units in the association, location of the property, number of common area amenities, type of development (condominium, PUD, detached home). In addition, reserve studies for mid and high-rise buildings are typically more expensive because they include mechanical equipment such as elevators, boilers, cooling towers etc.
Please contact us today if you would like a quote for your reserve study!