Understanding What A Reserve Study New Jersey Involves

1. Understanding What A Reserve Study New Jersey Involves Brought to you by: http://www.lockatong.com/

2. A reserve study New Jersey is very important because it helps in the evaluation of the physical components of a property as well as analysis of its reserve funds. It details the anticipated repairs or replacements that need to be done on common area elements of a property and then recommends the annual reserve funding that will cover the capital expenditures for thirty years ahead. The study gives community board members, managers as well as property owners the assurance that any major expenses that will need to be done on the property will be identified as early as possible so that a funding plan can be put in place to pay for them. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

3. The reserve study includes two parts, namely physical analysis and financial analysis. The physical analysis of the study is mainly focused on the common property elements. It includes three things, which are component inventory, assessment of the condition of the property, and valuation estimates. A reserve advisor engineer calls for an information-gathering meeting with the board member or property managers, or both. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

4. This meeting allows the engineer to understand more about the property and secure an important background on it. It also gives the board members and property managers an opportunity to describe any issues that are being experienced on the property. A property inspection is also done by the reserve study engineer during the physical analysis stage. The inspection helps to record, measure as well as assess the condition of the common property elements. Special attention is paid to the problem areas by the engineer. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

5. It is important for the reserve study engineer to take photos to record the condition of the property elements during the physical analysis. He or she will then recommend the useful life of each element and then recommend the time that repair and replacements should be done. During the financial analysis of the New Jersey reserve study, reserve fund contributions that are required for capital expenditures for the next thirty years are recommended. Both the current fund status as well as the suggested funding plan are analyzed. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

6. A comprehensive schedule of the major repairs and replacements that need to be done to common property elements as well as the cost estimates that apply to them are determined. This ensures that property owners have enough funding that will cover any anticipated costs for a span of thirty years in future. In short, the study is a blueprint for the future.  The reserve study is very beneficial because it helps to maintain the value and appearance of the property. When future capital improvements are identified and budgeted for early enough, the common elements of the property will continue looking attractive and well maintained. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

7. The study is also helpful in fulfilling the fiduciary responsibility that the board directors have to their members. The board directors are supposed to use sound business judgment to guide the association. They cannot overlook any major capital expenditures or take them from the budget. To understand more on what a New Jersey reserve study is and its importance, visit Lockatong Engineers today. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

8. The study is also helpful in fulfilling the fiduciary responsibility that the board directors have to their members. The board directors are supposed to use sound business judgment to guide the association. They cannot overlook any major capital expenditures or take them from the budget. To understand more on what a New Jersey reserve study is and its importance, visit Lockatong Engineers today. Understanding What A Reserve Study New Jersey Involves www.lockatong.com

9. Understanding What A Reserve Study New Jersey Involves Brought to you by: http://www.lockatong.com/