Things To Keep In Mind When Planning An NJ Reserve Study

1. Things To Keep In Mind When Planning An NJ Reserve Study Brought to you by: http://www.lockatong.com/

2. Having an NJ reserve study done has a lot of benefits. It meets fiduciary, legal as well as professional requirements of the homeowners’ association. It analyzes repairs and replacement needs of properties and provides a funding plan that enables accumulation of money that will be used to perform the repairs and replacements when they are needed. The study also minimizes the need for special assessments that need to be performed on a property. Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

3. It is like a business plan that helps in the maintenance of the assets that belong to the homeowners’ association. Before considering an NJ reserve study, there are a number of things you need to keep in mind. First, you have to understand that not all reserve study preparers are the same. Some of the things you will need to consider when selecting a person or firm that will be conducting the study for you include the knowledge and experience of the individual or firm, availability and local expertise, ability to understand your needs, accountability and quality control, and professional education. Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

4. If a person or firm does not have a combination of these qualifications, simply look for somebody else if you do not want the study to be a disappointment. You also need keep in mind that not all reserve studies are the same. Back in the day, the studies included a list of components, the cost for repairing and replacing them, and the useful life they were left with. These details were used to determine what the next years funding would be. Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

5. Nowadays, the reserve studies are comprised of a comprehensive physical analysis and financial analysis. The physical analysis is used to determine the current condition of the property as well as the expected useful life of the common area elements. Financial analysis on the other hand includes a cash flow projection for a period of 30 years. It mainly focuses on the planning as well as budgeting for repairing or replacing elements as per the needs of the association. Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

6. When considering an NJ reserve study, it is also important to understand that it is a budgeting tool. The cost of doing repairs and replacements on a property when they come may vary from the costs that are part of the reserve study. When the study is being prepared, the repair and replacement costs that are used are based on industry standards and the actual cost of similar projects that have been done. The costs at the time of work are usually influenced by many variables, including material prices, weather, location, contract workload, just to mention but a few. Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

7. When conducted properly, a reserve study may reduce financial management claims since the board seeks advice from independent reserve study preparers. This in turn provides property owners with greater comfort level because they can rest assured that their property is being managed properly. The study is also good business sense considering that it benefits managers, property owners as well as realtors of a property. Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

8. To understand more on the considerations to make when conducting an NJ reserve study, visit http://www.lockatong.com/ today.  Things To Keep In Mind When Planning An NJ Reserve Study www.lockatong.com

9. Things To Keep In Mind When Planning An NJ Reserve Study Brought to you by: http://www.lockatong.com/