What is a Reserve Study?
Over time, associations need repairs and renovations to maintain property values. As roofs, siding, elevators, asphalt and other property elements age, associations are responsible for planning where the money will come from to fund these projects. To understand these responsibilities associations needs a reserve plan.
A reserve plan achieves three things:
- Identifies which property components the association is responsible for.
- Estimates how much repairs will cost and when the costs will be incurred.
- Projects how much money will be required in the segregated reserve account to pay for the renovations and replacements when they’re needed.
New Concepts Management has prepared reserve plans for all kinds of associations. We thoroughly review your governing documents and carefully inspect your property before calculating and presenting our reserve recommendations. We take pride in making sure our reserve plans are clear, concise, and easy to understand.
Reserve Plan Updates
If you already have a reserve plan but it is more than three years old, it should be updated. New Concepts Management regularly updates reserve plans originally prepared by New Concepts and by other plan preparers.