“A reserve study is a long-term capital budget planning tool which identifies the current status of the reserve fund and a stable and equitable funding plan to offset ongoing deterioration, resulting in sufficient funds when those anticipated major common area expenditures actually occur. The reserve study consists of two parts: the physical analysis and the financial analysis.”
“There are three results from a reserve study:
- A listing of the major components to be funded through reserves, their expected useful life, remaining useful life, and current replacement cost (yielding the “scope and schedule” of the reserve projects).
- An evaluation of the current strength of the reserve fund (commonly expressed as “percent funded”).
- A recommended multi-year reserve funding plan.”
Lodgepole identifies the physical components needed for your reserve study.
Consider hiring a professional to evaluate your reserve fund and compute other financial analyses.