What To Keep In Mind When Planning For A New Jersey Reserve Study

1. What To Keep In Mind When Planning For A New Jersey Reserve Study Brought to you by: http://www.lockatong.com/

2. Homeowners associations in New Jersey have the responsibility of making sure that the property values of the associations’ common area elements are preserved and maintained. This translates to protecting the value of the properties of the people that belong to that association. • To be able to do this properly, it is very important for the associations to put in place funding plans to cover future repairs or replacements. A reserve study needs to be conducted to be able to identify the current state that the reserve fund is in and then come up with a stable funding plan for offsetting anticipated expenditures. What To Keep In Mind When Planning For A New Jersey Reserve Study www.lockatong.com

3. When planning for a New Jersey reserve study, there are various things you need to keep in mind if you do not want to be disappointed. First, you need to understand that not all reserve study preparers are the same. You need to evaluate the qualifications of the firm or individual that you will hire for this job and make sure that they have what it takes to provide the results that you are looking for. • Some of the key things to look for include the knowledge and experience of the reserve study provider. You need to make sure that they have been able to work on related projects in the past successfully. What To Keep In Mind When Planning For A New Jersey Reserve Study www.lockatong.com

4. Another thing you need to keep in mind when planning for a New Jersey reserve study is that all reserve studies are not the same. Back in the day, the reserve studies used to include a list of all common area elements, their replacement cost as well as their remaining useful life. These details were used to determine the funding for the coming years. • Nowadays, reserve studies not only include this financial analysis, but also a very comprehensive physical analysis of the property in question. The physical analysis is very important because it helps in determining the existing condition of the property as well as the actual expected life of the common area elements. What To Keep In Mind When Planning For A New Jersey Reserve Study www.lockatong.com

5. You also need to keep in mind that full funding of a New Jersey reserve study could mean that you are over-funded. There are various goals that you can use as the basis for the future reserve fund planning of your association. • Among them are baseline funding whereby the cash flow projection may reach zero at some point and component full funding which is based on ensuring that every component in the reserve study is fully funded. Others include threshold funding, statutory funding and pooling method. You need to establish which funding goals will be ideal in your case. What To Keep In Mind When Planning For A New Jersey Reserve Study www.lockatong.com

6. Last but not least, you need to keep in mind that the reserve study New Jersey is a budgeting tool. The actual amount of money that you will incur to do the repair or replacement when it occurs may differ from what you may have budgeted for in the reserve study. • To make sure that the replacement costs and the anticipated useful life of the common area elements are current, the reserve study should be updated from time to time. What To Keep In Mind When Planning For A New Jersey Reserve Study www.lockatong.com

7. For more information on what to do when planning for a New Jersey reserve study, check out our website today at Lockatong Engineering. What To Keep In Mind When Planning For A New Jersey Reserve Study www.lockatong.com

8. What To Keep In Mind When Planning For A New Jersey Reserve Study Brought to you by: http://www.lockatong.com/