Reserve study
A reserve study is a long-range planning report with two parts. The physical analysis inventories every major component the association must maintain, then estimates each one's remaining useful life and replacement cost. The financial analysis compares that to the current reserve balance and produces a funding plan — how much to contribute each year, usually over 30 years, so that every replacement is paid for when it comes due.
Studies range from a full study with a site inspection to an update with or without a site visit. Many professionals recommend a full study every few years with updates in between, and some states require one on a schedule — California, for example, requires a visual inspection at least every three years.
The study is an estimate, not a guarantee; boards should revisit it whenever a large component is replaced early or costs move sharply.
Read more
- How to build an HOA budget that survives the year
- Florida condo association laws: Chapter 718 guide
- Free HOA reserve fund calculator