Every homeowner and condominium association should exercise a plan to repair and replace major common area components like roofs, siding, and decks. Healthy reserves are critical to a healthy association because:
- Buyers examine the Reserves before buying
- Lenders examine the Reserves before approving a loan
- The board has a fiduciary responsibility to protect the association from financial hardship
- The costs of maintaining the property will be shared by all owners now and in the future
- It provides a predictable, manageable, contribution plan
- A healthy Reserve Fund will enhance the value of your home
- Most importantly, avoids special assessments
To conduct a Reserve Study, you need the following information: Item/Component Description, Number of Units per Item/Component, Replacement Cost per Unit, Year Built or Placed in Service, Life Expectancy in Years.
In the coming blog posts we will look at each of these in detail
Pacific Crest Reserves
Toll Free 1-866-618-7764 or Local 360-588-9956
http://www.PacCrestReserves.com
Comments(7)