Things To Keep In Mind When Planning Your New Jersey Reserve Study

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

2. A New Jersey reserve study is very important for a homeowners association. It analyzes repair as well as replacement needs such as painting and roofing that happen non-annually. It also provides a funding plan that is used for accumulating the money that is required to do the repairs in future. It serves more of a budgeting function as opposed to a building analysis, even though it has an element of that. It is based on the assumption that a regular and adequate maintenance is being done on a building so as to prevent any premature or costly repairs or replacements in the future.  Things To Keep In Mind When Planning Your New Jersey Reserve Study www.lockatong.com

3. When planning your New Jersey reserve study, there are a number of things you need to keep in mind. First, you need to understand that all reserve study preparers are not equal. It is important to evaluate the qualifications of the firm or individual that you will choose and make sure that they will not let you down. Some of the key factors you should consider when looking for person or firm include the knowledge and experience of the firm or individual, professional education, availability, local expertise and ability to understand your needs. You need to choose a person that has a good combination of education and experience if you want to get value for your money.  Things To Keep In Mind When Planning Your New Jersey Reserve Study www.lockatong.com

4. Another thing to keep in mind when planning for your reserve study New Jersey is that not all reserve studies are equal. Basically, the reserve study is comprised of physical and financial analysis. The physical analysis is focused on determining the existing condition of the property as well as the actual expected life of the common area elements that it is comprised of. Financial analysis on the other hand is a projection of the cash flow of the reserve fund for over a 30 year period. It helps in planning as well as budgeting of the common area elements based on the needs of the home owners association.  Things To Keep In Mind When Planning Your New Jersey Reserve Study www.lockatong.com

5. It is also important to keep in mind that a NJ reserve study is a budgeting tool. The amount of money that will be spent on repair or replacement work when it occurs may be different from the costs that are included in the reserve study. When preparing for the reserve study, the replacement costs that are used are usually based on industry estimating standards and the actual costs of related projects that have been performed in the past. The actual costs of reserve study are influenced by various things, including contractor workload, material prices, location, weather, and so on.  Things To Keep In Mind When Planning Your New Jersey Reserve Study www.lockatong.com

6. The New Jersey reserve study will not be only funding that the homeowners association will require for the upkeep of the common area elements. It is only meant for major repair or replacement of common area elements that are a responsibility of the association. It is supposed to cover maintenance, repair as well as replacement costs that are non-annual.  Things To Keep In Mind When Planning Your New Jersey Reserve Study www.lockatong.com

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