What is a Reserve Study

A  reserve study is a comprehensive assessment of a property’s common area  components and an analysis of its reserve fund balances to determine  the sufficiency of the funds for the future replacement of common area  assets.  

Why is a Reserve Study Needed?

The board of directors has a fiduciary responsibility to the other members of an association. A  reserve study is a budgetary tool used by the board to identify  property components which are the responsibility of the association and  plan for their future maintenance or replacement. Systematic  replacement of asset components when needed helps the association to  properly maintain asset components and enhances the value of the  association’s property and overall attractiveness.