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The Benefits Of A New Jersey Reserve Study

November 30, 2020December 1, 2020 by ptbg

A New Jersey reserve study is a great tool to reserve item quantity sizes as well as future costs. It contains detailed information about the long lasting capital reserve items of a homeowners association, such as roofing, painting, clubhouses, paving, recreation areas, among other items.  A reserve study projects the useful life of an item, the remaining useful life, the current cost of that item, and the future cost of that item.  This information is very useful when it comes to the preparation of the annual budget for the homeowners association.

There are a number of users who can benefit from the New Jersey reserve study. Among them is the board of directors. This is so because they are directly involved in the establishment of the next year’s budget, and reserve items are very important components of that budget. Without a reserve study, the board of directors will have to take wild guesses on the reserves, something that could lead to underfunding as well as big special assessments in both the short term and long term.

Another group or users that could benefit from a New Jersey reserve study is other homeowners in the association.  The reserve study can put these homeowners on a more sound long term track.  With this study, special assessments can be eliminated or minimized.  It is the most fair and equitable way to fund long lasting items.

The New Jersey reserve study can also beneficial to the association as a whole. There are some communities that have a reserve schedule that they set up themselves. While the items on the schedule may be reasonably accurate in terms of costs and useful life, the problem is that some associations do not get all of the proper items on the schedule. A reserve analyst can help you determine the items that you should be funding that you are not currently funding.

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

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