Frequently Asked Questions

A reserve study is a financial planning report that helps community associations budget for future major repairs and replacements of common area components—like roofs, pavement, and mechanical systems.

It ensures the association is setting aside enough funds to avoid large special assessments and keep the property well maintained over time. In some states, it’s legally required.

Most industry standards (like CAI) recommend updating the reserve study every 3–5 years. Some clients like to be more proactive and update their reserve study annually.

For a full reserve study, yes. For updates, it depends—some updates are done with a site visit (Update with Site Visit), and some without (Update with No Site Visit) if prior data is reliable.

A qualified reserve study provider—often someone with an RS (Reserve Specialist) or PRA (Professional Reserve Analyst) designation. Engineers, architects, or experienced consultants may also qualify.

It varies based on the size and complexity of the property. A smaller community might pay $2,000–$4,000, while large communities or commercial properties can be $6,000+.

a. Component inventory

b. Cost estimates

c. Remaining useful life estimates

d. A 30-year expense/income outlook

e. Funding recommendations (Full Funding and Baseline)

The operating budget covers routine expenses (e.g., landscaping, snow removal). The reserve fund is for large, infrequent projects (e.g., roof replacement, repaving).

You risk special assessments, loan dependence, and/or deferred maintenance—which can reduce property values or cause legal issues.

In some states, yes—especially for condos and HOAs. Requirements vary by state, so it's best to check local laws (e.g., Virginia, New Jersey, and Tennessee all have specific mandates).

Useful Life = Total expected lifespan of a component (e.g., 20 years for a roof).

Remaining Useful Life = How many years are left before it needs replacement (e.g., 7 years left on that same roof).

Typically, any shared/common area component with a limited lifespan and replacement cost over a certain threshold (e.g., $5,000). Think: roofs, asphalt, HVAC, fencing, signage, paint, pools, elevators, etc.

Not exactly. The reserve study provides projections based on typical life cycles—but actual replacement timing depends on wear, maintenance, weather, etc.

Generally, yes—as long as the emergency repair relates to a reserve component. But some bylaws or state laws may have restrictions, so it’s best to consult with your association attorney.

Many communities use spreadsheets, accounting software, or specialized reserve tracking tools. The key is to update annually and re-evaluate after major projects or cost changes.

Usually, 2–3% inflation and 1–2% interest earned, but this can be customized based on market conditions or your accountant's recommendations.

Yes. You can request a No Site Visit update to your study, even if no reserve projects have occurred since the last study was done. Now you will have real-time market value costs for all of your components.

We use current cost data which includes: historical costs from the client,

vendor quotes, and industry databases. The current cost is then adjusted

for inflation trends.