Benefits of a Reserve Study
- Property values are directly affected by the level of maintenance and upkeep of the common area components. Reserve studies create a maintenance plan, which keeps a development in good condition, therefore increasing property appreciation and value.
- Provides inventory of common area components and a schedule for their repair and replacement
- Assists board of directors and managers in fulfilling their legal and fiduciary duty to maintain the community in a good state of repair.
- The amount of funds in the reserve account also greatly affects property values. Reserve studies inform CID’s exactly how much they should have in their reserve account.
- Prospective buyers require a current reserve study before they consider buying into a community.
- Lenders require a current reserve study before they will give a loan to someone buying into an association
- Reserve studies eliminate costly special assessments.
- Reserve Studies can help avoid litigation against CID board members and property managers.
- Reserve studies assure each member of a CID contributes their fair share to the reserve account so when expenses arise the required funds are available.