A New Jersey reserve study is a great tool for Reserve projecting reserve item quantity sizes as well as future costs. It contains detailed information about the association’s long-lasting capital reserve items, such as painting, roofing, paving, recreation areas, clubhouses and various other items. A reserve study projects how long an item will last, how long that item has replacement, the current cost of that item, as well as the future cost of that item. This information is very important when it comes to preparing the annual budget for the association.
If you are an association managed community, you need to have adequate funds in reserve to keep with the general repairs as well as replacement of the common areas that are part of the association. With the help of a New Jersey reserve study, you can have an effective plan in place to keep up with the costs of the facilities and make sure that the members of the association are not required to carry the burden of sudden repairs and replacements.
So what exactly happens during a New Jersey reserve study? During such studies, physical components of the properties that are a part of the association are evaluated thoroughly, and the existing reserve funds are also analyzed. A report is generated with detailed information of the elements that might need replacement or repairs in future as well as how the association can maintain adequate funds in reserve in order to keep up with these expenses. A reserve study usually covers such capital expenditures for thirty years.
There are various benefits of a New Jersey reserve study. One of them is that it helps predict costs. With the help of such studies, members of the community association are not required to pay for any kind of special assessment. Detailed information about the expenses is made available in the study report, and the owners are notified of all the costs.