While conducting hundreds of Reserve Study site inspections each year, our team of Reserve Specialists occasionally run into some rather interesting assets that pass the Component List 4-part test and thus should have their repair or replacement costs reserved for.
This was a good question asked recently by a client. They wanted to see all the separate items in their equipment shed in their Reserve Component List, not all the mowers grouped together, or the small runabouts grouped together.
A reader recently asked a good question, asking for clarification about where the money should come from for a particular expense. The answer illustrates an important concept.
Interesting question, with an answer that is not obvious. Most associations deal with the problem of replacing components too late, resulting in deferred maintenance and related costs that make the project much more expensive than if it was done on time (think of the cost of replacing siding or trim that could have been avoided if the building was painted on time, or the water damage that could have been avoided if the roof was replaced on time).
Good question! There are two ways to answer a question regarding the appropriate use of Reserve Funds, depending on how it is asked. Boardmembers and managers of condos, HOAs and other forms of community associations are often confronted with a major repair or replace expenditure they think should be a Reserve expense, but can not find it on the Reserve Component List (a good first place to look).