A New Jersey reserve study is without doubt a great tool to project reserve item quantity sizes as well as the future costs. It is comprised of detailed information about an association’s long-lasting capital reserve items, which includes things such as painting, roofing, paving, clubhouses and recreation areas. A reserve study projects useful life of an item, its remaining useful life, the current cost of that item, as well as the future cost of that item. This information is of great importance when it comes to preparing the annual budget for the association.
A New Jersey reserve study can benefit multiple users. The board of directors is among the people that can benefit from this tool. This study may be most beneficial to the current board of directors since they are directly involved in establishing coming year’s budget, and reserve items are a component of that budget. In cause the board of directors decides to just to take a wild guess on reserves, chances are it could lead to underfunding as well as a big special assessment in the short term or long term.
Apart from the board of directors, other homeowners in the association can also benefit from the New Jersey reserve study. This is because the reserve study puts them on a more sound long term track. With this tool, special assessments will be eliminated, or minimized. A reserve study is the most fair as well as equitable way of funding long-lasting items.
The reserve study can also benefit the association as a whole. Some communities have a reserve schedule that they set up themselves. The items on that schedule may even be reasonably accurate in terms of costs as well as useful life, but one common mistake that is commonly made is that some of these associations do not get all of the proper items onto their reserve schedule. When you speak with a reserve analyst, chances are they may have some ideas for items that you need to fund but may not be currently funding.