What is a Reserve Study?
The reserve study is a multi-faceted tool used to predict the cost of each common property component and the year the component will require maintenance and/or replacement. A reserve study recommends annual reserve contributions that balance the expenditures. As a result, the property is prepared for capital improvement and maintenance projects.
Why Hire a Professional?
A reserve consultant provides an expert independent analysis of the property. By remaining independent, the consultant provides an objective point of view to best maintain the property. This may alleviate disputes between property representatives. Furthermore, a professional reserve study reduces the liability of the property representatives because the fiduciary responsibility is passed to a professional.
