What is an HOA Reserve Study?
An HOA reserve study, although technical, is a crucial part of owning and managing and HOA and its properties. Whether you own a large HOA or a cozy one, an HOA reserve study stands between you and HOA disaster. Yet, what exactly is this study? National Property, your elite Santa Clarita HOA management program can tell you.
The HOA Reserve Study
This study is an evaluation of all your property’s physical components with a thorough analysis of your reserve funds. The reserve study is performed on-site and everything is looked over completely. This study will help you build a study that details anticipated replacements or repairs that might need to be made to these components.
The study will help you decide how much cash flow will need to be in your annual reserve funding – even for the next 30 years. This is crucial planning for a successful HOA.
When the reserve study is complete, the HOA board will need to meet to discuss how to fund these expenses. Once a decision is made, these numbers and the funding decided upon will need to be disclosed to your HOA members for complete disclosure.
Preparing an HOA reserve study is a requirement for all HOAs, no matter the size. However, if your total replacement costs that are found within your study are less than 50% of your budget, you are excluded from the study.
An HOA reserve study should be conducted every three years for maximum effectiveness. Changes can be made if needed to further the correct funding and allocation of your HOA company.
National Property, your Santa Clarita HOA management company is here to help with your HOA reserve study. Although the study can be difficult to understand, it is crucial to your success. Give us a call today and let us help!
National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355