Picture yourself onboard an airplane for a long-awaited family vacation. As you watch the clouds float by, you happily day-dream of the adventures in store for you and your loved ones. As the flight attendants hand out the first round of drinks, the pilot makes a sudden announcement: “Folks, we’re terribly sorry, but the plane is almost out of fuel. What’s worse,
This may seem like strange advice coming from a couple of professional Reserve Study providers, but after almost 25 years in this industry we still find many of our clients confused about which level of service is appropriate for their Association.
One of the most important responsibilities that Boardmembers and professional Managers face each year is the preparation of their Reserve Study. This document will not only reveal the current Reserve strength of the Association, but also the Funding Plan moving forward.
Boardmembers and Managers often get themselves into a situation where they need to “sell” the value of regular Reserve contributions to their homeowners. It’s often a simple matter of fighting for budget dollars… Reserve contributions don’t keep the lights on, they don’t keep the Association properly insured, and they don’t pay the Management company’s bill.
I recently read an article critical of using “% Funded” to measure the financial strength of an Association’s Reserve Fund. The author argued that since
This is a very common question. Most Boards want to know how their Reserves are doing, and, more specifically, how their Reserves are doing “compared
