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Reserve Study
A long-term engineering and financial budget report analyzing anticipated capital repair milestones to establish adequate cash replacement reserves.
A Reserve Study is a specialized long-term financial and physical engineering report that inventories all major common area components of a property (such as roofs, elevators, paving, and central boilers).
The study evaluates remaining useful life, estimates future replacement costs, and calculates required monthly reserve fund contributions to prevent emergency special assessments.
Frequently Asked Questions
How often should commercial or HOA properties commission a comprehensive reserve study?
Associations and commercial property owners should commission an on-site reserve study update every three to five years, accompanied by annual in-house financial reviews.
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Long-term investment funds used to improve, replace, or add major physical property assets that are capitalized rather than expensed immediately.
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