Frequently Asked Questions

What is a Reserve Study?

A comprehensive review of your property's physical assets, their current condition, and the funds needed to replace these components over time.
It gives association managers and Board members the confidence that they have reviewed your association's reserves and now have a plan of action.

Without a plan for capital replacement funds, you are at risk of inadequate funding, special assessments, and/or deferred maintenance.
A professional reserve advisor like Community Advisors provides you with the experienced, third-party guidance you need to manage your reserve funds.

A quality Reserve Study is a solid investment and is cost-effective. The actual cost of the study depends on the type of your community, the complexity of its assets, and the age of its components.
But it costs NOTHING to call or email Community Advisors - we'll discuss your needs, give you some direction, and submit a proposal… all at no charge.

Give Community Advisors a quick call or email us. We will usually have your proposal ready the next day, if your property is in our local region (slightly longer if outside our region). If our proposal is acceptable to you, then we can meet to discuss the specifics of your community and what level of service you need. Going ahead, we then finalize our agreement and Community Advisors gets to work:
We conduct a detailed site inspection of your physical assets (pools, tennis courts, buildings, etc.). We determine the current condition of each component, its remaining useful life, and the cost to replace it. We include photos of each component to illustrate our findings.
We discuss current operating issues with your annual service contractors, and review other information you have, such as any construction plans.
We then review your financial information - operating budgets, past expenditures for capital replacements, reserve fund balances, etc.
We compile the physical and financial information, determine your current reserve fund health, and project the assessments needed to maintain your property.

Once we have the necessary information from you, we complete a Draft Study for your review.
On average your draft report is issued about four to six weeks after we complete the site visit and we have received the necessary information from you to complete our analysis. We are always willing to work with our clients to meet their expectations for delivery so if time is an issue please let us know.

Your Reserve Study is based on two key items:
1. Physical Analysis - the inspection of your property current condition and replacement cost; and
2. Financial Analysis - a review of your current reserve fund balances, annual assessment, and your funding strategy.
A list of your major components along with current condition, remaining useful life, replacement cost, and photographic records.
Various funding models that we have tested to develop your custom reserve fund plan.
An executive summary that details your current financial situation and recommendations for future assessment levels.
Graphic illustrations of financial model results.

We include the information you need for your specific funding plan in a logical format that is easily understood.
We are ready to help you with questions you may have. And if you wish, we can present the Reserve Study to your Board.

That depends on your specific needs and the current condition of your property.
In most cases, it's best to review the financial information annually to take advantage of current replacement costs and interest/inflation rates, and complete physical inspections less frequently.

We have many years of experience in building both residential and commercial structures - we know how your property was built, where defects may occur, how to fix them, and the cost of doing so.
We have broad contacts with vendors and subcontractors who provide us with current replacement-cost information that is specific to your local area.
We use state-of-the-art computer software to test our financial funding models, and provide you with a simple, accurate, and cost-effective Reserve Study.
Community Advisors will respond quickly to your request, and provide your Reserve Study when you need it.
We are happy to meet with you and/or your Board to present the results of your Reserve Study.

Please contact us for more information about Reserve Studies and how one can benefit your association.