RESERVE STUDY SERVICES
____________________________________
To identify and forecast the funding of the
PROPERTY ELEMENTS

The property elements are set forth in the
Declaration; the following is merely an
example of one associations property
elements

SEGREGATION OF PROPERTY ELEMENTS

Our analysis will include a segregation of the
property elements for the purpose of
identifying the areas of responsibility for
repair and replacement:

  • Reserve Components
  • Long Lived Property Elements
  • Operating Budget Funded Repairs and
    Replacements
  • Property Maintained by Homeowners

RESERVE COMPONENTS

The Reserve Components are comprised of
items likely to require Reserve Expenditures
during the next 30 years:

  • Exterior Building Elements; i.e., Gutters
    and Downspouts, Light Fixtures,    
    Roofing, Brick Work, Paint Finishes,
    Vinyl Siding, Wood Decks, etc.
  • Property Site Elements; i.e., Asphalt
    Pavement, Concrete, Fences, Light    
    Posts and Fixtures, Retaining Walls, etc.
  • Clubhouse Elements; i.e., Building
    Service Equipment, Interior, Roofing,    
    Windows and Doors, etc.
  • Pool Elements; i.e., Concrete Deck,
    Fencing, Mechanical Equipment,
    Plaster    Finish and Tile Repairs, etc.

LONG LIVED PROPERTY ELEMENTS

Long Lived Property Elements are items
without predictable remaining useful life
expectancies:

  • Electrical Systems
  • Foundations
  • Structural Frames
  • Sewer and Water Pipes

OPERATING BUDGET FUNDED REPAIRS
AND REPLACEMENTS

The operating budget provides money for the
repair and replacement of certain Reserve
Components:

  • General Maintenance to the Common
    Elements
  • Landscape
  • Paint Finishes, Touch Up
  • Signage
  • Other Repairs Normally Funded Through
    the Operating Budget

PROPERTY MAINTAINED BY
HOMEOWNERS

Certain items have been designated as the
responsibility of the homeowners to repair or
replace:

  • Garage Doors
  • Heating, Ventilating and Air Conditioning
    (HVAC) Units
  • Interiors
  • Windows

PHOTOGRAPHS

Documents the condition of various property
components as of the date of the visual
inspection

FINANCIAL ANALYSIS

Repair, maintenance, and replacement costs
will be acquired and projected over time based
on the determined life expectancy of each
element which in turn will create the data for a
Funding Plan.  Operation Account Budgets will
be provided both historical and projected.

RESERVE FUNDING PLAN

The Reserve Funding Plan, utilizing
spreadsheets, graphs, and text, will allow the
Board to plan for any increases or decreases
in the association maintenance fee and/or
special assessments in order to maintain a
fully funded reserve fund

RESERVE EXPENDITURES

By segregating the property elements (shown
above) allows the Board to minimize the
expenditures of the reserve account,
therefore utilizing the operating account when
at all possible

RESERVE STUDY UPDATES

An ongoing review by the Board and an
update of the Reserve Study in two-three
years is necessary to ensure an equitable
funding plan since a Reserve Study is only a
snapshot in time.  Many variables change
after the study is conducted that may result
in significant homeowner overfunding or
underfunding of the reserve account.

CREDENTIALS

Our Reserve Study analysts have a combined
60 years of corporate operational, financial &
accounting management experience, as well
as, 20 years of structural engineering
experience.  Their expertise consist of
forensic financial auditing, projection cost
analysis, financial forecasting, plan
implementation and structural engineering.  
Local third-party, Engineers, and General
Contractors are used on an as needed basis.

Thank you for considering us for your reserve
study needs.  The cost associated with
completing a Reserve Study varies from
Association to Association.

Please contact us with any questions or
concerns and we appreciate your interest.
KareCondo, Association Management, Stow, OH
__________________________________________________________________

Specializing in providing superior Community Association Management Services to
Condominium & Homeowner Associations
__________________________________________________________________