Community Consulting Services, LLC provides expert opinions that will provide proper replacement timelines and maintenance schedules for street maintenance, roofing and building repair, golf course irrigation systems / turf renovations, equipment purchases and replacement of various components and necessary infrastructure.
Homeowner associations and other common interest properties need to prepare a proper reserve study so a proper “Reserve Fund” can be established and maintained for their community. A Reserve Fund is money set aside to pay for future expenses. Most communities have common area assets which require maintenance and eventual replacement. In order to keep up the community appearance and keep assets functional, ongoing maintenance and replacements are necessary. In order to fund these ongoing expenses a “Reserve Fund” is needed.
Although many reserve studies are performed by accountants and other financial professionals. Many of the individuals are not skillful or knowledgeable about the detailed operations of how your community functions. Ask yourself if your current provider possess the skills and operational ability to handle your association’s Reserve Study. Also, ask yourself if you are hiring a local company who understands the market and the effects of mother nature on your assets in the Arizona market is very important.
Updating your reserve study every year or two is essential for saving your community potential increases in assessments. Every year changes are seen in material costs and labor, along with changes in interest and inflation rates. Within the past few years, interest rates on investments have fluctuated providing less of a return, which in turn provides fewer funds to make repairs or improvements.
Updating your study every year is very important to a successful community and limiting special assessments. If your association has undergone or planning large improvements within the past year, it is always best to update your reserve study to reflect any changes so proper funding can be maintained for all your assets.
Contact the industry professionals about your next reserve study.