We all know that scarcity causes conflict and stress. Scarcity of Reserves causes deferred maintenance and special assessments, drags down property values, and causes other related problems. How can an association avoid these problems and emerge with sufficient funds to maintain the community, maximizing property values and pride of ownership?
Simple. Update your Reserve Study, don’t let it grow useless on the shelf. In a review of 19,111 of our most recently completed Reserve Studies, we found that special assessments (an easy-to-measure event) dropped by 35% when an association updated their Reserve Study more frequently than every fifth year. The improvement was 35.1%, actually! In addition, year-to-year variations in Reserve contributions in those associations dropped by 9%.
It’s not surprising really. Associations who pay attention to their financial situation have demonstrably fewer special assessments (disruptions), and more stability to their budget. They tend to be on-track, setting the right amount aside towards Reserves, with owners all paying their fair share (the true cost of home ownership). The result is their association is significantly more likely to have the necessary Reserve funds on-hand when they are needed to perform those major, predictable common area repair and replacement projects.
So… want to make your association a better place to live and own a home? Pay attention to your budget. Update your Reserve Study regularly (every year, or at least every third year). The payoff, 35.1% fewer special assessments, is very real. It’s in your control to make this type of change at your association!