What is a Reserve Study?
By: Robert M. Nordlund, P.E.
A Reserve Study is the art and science of anticipating, and preparing for, major common area repair and replacement expenses.A Reserve Study allows the Board and Management to offset the ongoing deterioration of the common areas with Funds to ensure the timely repair or replacement of those common areas. When properly done, irregular Reserve expenses are offset by ongoing, regular Reserve contributions. Special assessments are then left for true emergencies, not expenses which could have been anticipated.
