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Why A Reserve Study New Jersey Is Needed

A reserve study New Jersey is a very important budget planning tool that helps in identifying the current status of the reserve fund. It is a continuous blueprint for the future. <br>

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Why A Reserve Study New Jersey Is Needed

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  1. Why A Reserve Study New Jersey Is Needed Brought to you by: http://www.lockatong.com/

  2. A reserve study New Jersey is a very important budget planning tool that helps in identifying the current status of the reserve fund. It is a continuous blueprint for the future. Its main goal is to make sure that sufficient funds are set aside in order to offset anticipated future costs that are associated with major expenditures that will affect the homeowners association. When common elements of the property need to be repaired and replaced, the board members or property owners will not be required to resort to loans or special assessments to fund them. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  3. The reserve study is comprised of two components, namely physical analysis and financial analysis. The former is simply an inventory of the common elements of a property, an evaluation of the current state of each element, and an estimation of the useful life that it still has. The repair and replacement costs are also covered during the physical analysis. The financial analysis on the other hand looks at the current reserve balance with the aim of determining the appropriate amount that needs to be contributed going forward in order to meet the project repairs or replacement schedule. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  4. It will make assumptions based on long terms trends that may either hold true or not in the short term. There are quite a number of reasons why a NJ reserve study needs to be conducted. The first reason is maintaining the value and appearance of the property in question. Since future capital improvements of a property will be identified and budgeted for, the common area elements of the property will continue looking well-kept and attractive. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  5. This will add to the overall life of the community. It will also make ongoing maintenance very simple for the property owners and board directors of the homeowners’ association. Another reason why a reserve study is conducted is to help the board of directors fulfill their fiduciary responsibility to the members of the association. The directors have a legal responsibility to use sound judgment when it comes to guiding the association. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  6. There is no way they can just ignore capital expenditures or remove them from the budget that was set without making it known to the members of the association. The reserve study will also help to establish budget direction as well as sound financial planning. It lays out a proper schedule for major repairs to common property components as well as the cost for doing those repairs. The benefits of a reserve study New Jersey are numerous. It will not only help with long term planning, but it will also benefit the residents. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  7. When you know the amount of money that the association has in the reserve fund, you will not need to ask the residents for assessments that are not necessary. The reserve study will also make the property more attractive to investors that are specifically looking for an association that has solid and long term financial plans. Conducting the study might look hectic, but it will be worth the effort and money you will put into it. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  8. For more information on reserve study NJ, visit http://www.lockatong.com/ today. Why A Reserve Study New Jersey Is Needed www.lockatong.com

  9. Why A Reserve Study New Jersey Is Needed Brought to you by: http://www.lockatong.com/

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