For more than a decade, Borne Consulting has been helping Homeowner Associations and property owners protect their investments by providing reserve studies. Reserve studies provide critical information to enable owners to manage both their reserve and operating budgets effectively, ensuring that the necessary funding will be available to maintain their property adequately.
Aspects of Reserve Studies
It is important to know all of the common components that the Homeowners Association is responsible for so an accurate inventory of these components can be done. The quantity of common components is also important as the cost of long-term repair and replacement of these components will be impacted by the quantity.
The condition assessment of each common component is where building experience and judgement are critical. Borne Consulting's experience enables its personnel to develop accurate assessments of common components.
The objective in performing the financial analysis is to assist the Association in developing a financial plan that results in a well funded reserve balance for the community. Depending on the starting balance, the age of the facility, the short and long-term repair needs and the current contribution, any deficit in the reserve blanace may have to be made up over a period of time.