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Reserve Study

What is a reserve study?

A reserve study is a report that identifies certain capital assets of a property, computes their estimated costs and life expectancies and then formulates a budget plan to pay for the cost of replacing these capital assets.

What is involved in a reserve study?

On-Site Survey

We will perform an on-site survey of the property in which we will first meet with available personnel (manager, maintenance engineer, board/committee members, etc.) to discuss specific reserve concerns.  We will then identify the reserve components and collect specific information on each including age, history, quantity and condition.  Photographs and measurements will be taken as needed.

Physical Analysis

We will research relevant background information on the property, review past reserve related work and, if necessary, contact those involved.  We will also investigate any possible reserve requirements.  A takeoff of information will be performed from available construction drawings.  Current repair and/or replacement costs for each reserve component will be estimated.  Useful and remaining life expectancies for each reserve component will then be projected.

Financial Analysis

We will input current reserve financial data including budget contributions and fiscal year end balances.  From there future reserve contribution amounts will be calculated.  Finally we will analyze, adjust and finalize study findings and recommendations.

Report Preparation

We will prepare and send to the client two bound and tabbed color presentation copies of each report and one unbound photocopy of each report.  (Additional color presentation copies are available.  Contact our office for cost.)  Each reserve study report will include a summary of recommendations and findings, a straight line segregated reserve component plan and schedule, a thirty year cash flow plan and schedule, supporting charts, graphs and property photographs.

What types of reserve studies are there?

First Time Reserve Study

A complete comprehensive study involving all of the steps as described on this page.  For first time customers only.

Update Reserve Study

For future years (and budgets) clients who have had a first time reserve study report prepared by our firm will have the option of requesting a reserve study update report.  In each update report any reserve related changes made to property since the time the last report was prepared will be reviewed.  Based on the latest available data, all reserve component costs and life expectancies will be adjusted accordingly.  Current financial data will be entered in and a new analysis will be performed.  The update report will be prepared in our office without an on-site visit.

Re-Inspection Reserve Study

Typically after a major renovation or if several years have gone by since our last inspection, we recommend performing a re-inspection of the property.  This type of study would allows us to re-examine the physical assets and their current condition and make the necessary adjustment to the report.  It also gives us a chance to see the changes made to the property since the last inspection.

Reserve Study Contents


     "The board asked that I extend it's appreciation and compliments for a well-prepared, comprehensive, and easy-to-follow Reserve Study that will prove invaluable in our future financial planning."

JoAnne S., Managing Agent