Reserves Study: Fact or Fiction?
It is difficult to make predictions, especially about the future. Karl Kristian Steincke in “Farvel Og Tak” (1948)
The quote attributed to Steincke may seem like a joke. It is not. But there is no reason for us to stop preparing for the future.
After many many years the Aquarius Condominium Association got its RESERVE STUDY. This is a document that a prudent administration keeps very close and make a complete review of it every couple of years. The initial document was produced in 2019 with a detailed in loco, inventory and assessment of our property. In 2021 the “Association Reserves” specialized firm conducted a review of this study. This new study was a “no site visit” one. It is based in the natural deterioration and decay of the buildings’ components according the experience with similar properties.
The initial pages of the RESERVE STUDY report bring interesting remarks:
“”Welcome to your Reserve Study!
Reserve Study is a valuable tool to help you budget responsibly
for your property. This report contains all the information you
need to avoid surprise expenses, make informed decisions, save
money, and protect property values.
Regardless of the property type, it’s a fact of life that the very
moment construction is completed, every major building
component begins a predictable process of physical
deterioration. The operative word is ” predictable” because planning
for the inevitable is what a Reserve Study by Association Reserves is all
Avoiding fund reserves is dangerous and results in large special assessments with increased costs associated with long neglected issues, no periodic maintenance and longer periods of disruption of the normal enjoyment of the property amenities. To fund or not to fund is a serious decision. To be informed of what is very likely to happen in the future is important for those wise ones.
Here the complete reports of Aquarius RESERVE STUDY.
Reserve Study 2021 (valid up to December 31, 2022)
Reserve Study 2019 (valid up to December 31. 2020)
Other stuff related to the matter:
The Ticking Clock On problems due to lack of reserves
Survey 1/3 The 2021 SA 2021
Results Survey 2/3 Opinions in percentages 2021
Results Survey 3/3 Comments on issues 2021