Keep Your Reserve Study Current to Avoid Surprises
December 23, 2014
Even the most diligent and responsible Homeowners or Condominium Association will experience sudden shortfalls if they rely on an outdated or inaccurate Reserve Study to make their decisions. Frequent, accurate collection of information is crucial to establishing the financial forecast of your association, especially in the modern market when the effects of budgetary mismanagement are more serious. Hara Management, Inc., Central Florida's first choice for community association management, outlines a process which will help make sure your Reserve Study remains current.
As part of the annual budget process, update your reserve component list.
Every three-to-five years, hire a third-party specialist firm to conduct an updated reserve study.
Major investments should be followed by updating the reserve study.
These small steps will minimize the risk of being faced with surprise expenses, which may lead to increased association dues or resorting to a third-party lending firm. It is becoming more common for buyers and mortgage providers to examine the financial health of an Association before purchasing a home, meaning that management of reserves could impact the long-term desirability of properties in the community. A continuously updated reserve study will also allow you to anticipate future funding availability and plan updates, upgrades, and expansions accordingly.
With decades of experience in the commercial property management industry, Hara Management, Inc. has the expertise to help your homeowners association provide the best service to residents, whether you just need accounting assistance or would like a full-service, on-site management representative.