Many HOA boards understand that a Reserve Study is important budgeting and planning tool to help them prepare for future maintenance and repair costs. However, many are scratching their head as to what to do after they get it. As a result, we find that many of our clients are not getting the most out of their study.
Read more: Reserve Studies and California Law
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At the very least HOA boards should be referring back to the study as they put together their budget each year. However, Reserve Studies typically look about 20 years into the future, allowing boards to look beyond next year’s budget to implement long-term strategies for preventative maintenance programs that can extend the life of building components.
Read more: The Reality of Underfunded Reserves
Looking a bit deeper, boards can refer to the study to see exactly which repair and maintenance projects are coming up. This allows you to not only set aside funds, but gives you ample time to start writing specifications, soliciting bids, hiring consultants and raising additional dollars if need be.
Lastly you should be leveraging the information contained in your study to cross-reference bids and/or contracts. A detailed study should include precise schematics and measurements and it often proves worthwhile to double-check this information when dealing with vendors or consultants.
At Barrera and Company, we complete thousands of Reserve Studies each year which have helped our clients comply with the law and prepare for upcoming expenditures.
Interested in getting a Reserve Study for your community? Click here to get a proposal!