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The Benefits Of A New Jersey Reserve Study

The Benefits Of A New Jersey Reserve Study

August 20, 2020September 29, 2020 by ptbg

A New Jersey reserve study is a great tool for projecting reserve item quantity sizes as well as future costs. It contains a detailed description of a community association’s long lasting capital reserve items, such as painting, roofing, paving, recreation areas, club houses and various other items.

A reserve study simply projects how long an item will last, how long that item still has before it should be replaced,  the current cost of that item as well as its future cost.  This information is very important when it comes to preparing the community association’s annual budget.

A New Jersey reserve study can benefit many people. The first group of people that can benefit from having a reserve study performed is the current board of directors. This is the case because the board is directly involved in establishing the next year’s budget, and the reserve items are an important component of that budget. Without this study, the board of directors will just have to take a wild guess on the reserves, something that could lead to underfunding  as well as  a big special assessment in the short term or long term.

Another group of people that could benefit from  a New Jersey reserve study is other homeowners in the association. The homeowners will benefit from the reserve study because it will put them on a more sound long term track. With this study, special assessments will be eliminated  or minimized.  It is the most fair and equitable way of funding long lasting items.

The reserve study can also benefit the association as a whole. While some associations have a reserve schedule that they have set up for themselves, the problem is that some of them do not get all of the proper items onto their schedule.  A reserve analyst can advise you on the items that you should be funding  but may not be currently funding.

For more information on the benefits of a New Jersey reserve study, visit our website at https://www.lockatong.com

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