Benefits Of A Reserve Study New Jersey To A Community Association

1. Benefits Of A Reserve Study New Jersey To A Community Association Brought to you by: http://www.lockatong.com/

2. A reserve study New Jersey is very important for a homeowners association when it comes to planning for long term repair and replacement of the common area elements. Many community associations have used the reserve study to determine how much money is required to do major repairs as well as capital improvements. For most of these associations, the largest single cost is maintenance. The reserve study is supposed to be a reflection of the maintenance plan of the community association as opposed to being the creation of the maintenance plan. It should help in correcting minor problems as they occur before they aggravate into major problems.  So how exactly is a reserve study New Jersey beneficial? Well, first of all, the reserve study is fair. The owners will only contribute for the life that is extracted during their term of ownership. People that are current owners of the property in question will not be assessed for what the previous owners did not pay when a reserve study is conducted. The study will also help in protecting the owner’s investment. It does this by making sure that funds are always available to keep the community properly maintained and functional.  Benefits Of A Reserve Study New Jersey To A Community Association www.lockatong.com

3. The reserve study New Jersey is also beneficial to prospective buyers. Even though most buyers are not well informed about the values of a reserve study or do not even understand it at all, there are those who will demand to see a reserve study before they part with their money to pay for a property. The study enables the buyers to evaluate funding status of the reserve of the association. The reserve study can also help protect the homeowners association against litigation. Failure to perform a reserve study or doing it inadequately may lead to lawsuits involving the buyer and seller.  When a New Jersey reserve study is performed properly, it can lead to increased stability or lend ability. Savvy lenders will closely examine the finances of the association before they make any commitments. From the reserve study, they will be able to tell whether the financial health and assurance of the association that they are about to lend to are in good standing. If they find that some things do not add up, they will take precaution and avoid getting into any lending deals that they will regret later on.  Benefits Of A Reserve Study New Jersey To A Community Association www.lockatong.com

4. By using a reserve study New Jersey for long range planning, the need for special assessments in future is going to reduce. And when special assessments are reduced, personal financing of the community association will be in good standing while the uncertainty and fear of ownership among prospective buyers will be reduced. The reserve study may also help in identifying problem areas. It does this by highlighting the areas that require routine maintenance or immediate attention. When problem areas are identified early enough, the useful life of the common area elements will be extended and the costs for doing repair and replacement will be minimized.  To help you understand the benefits of a reserve study New Jersey to a community association, visit us today.  Benefits Of A Reserve Study New Jersey To A Community Association www.lockatong.com

5. Benefits Of A Reserve Study New Jersey To A Community Association Brought to you by: http://www.lockatong.com/