Reserve Studies
A reserve study is a budgetary planning tool that is both a physical analysis of your property and a financial analysis of your funding strategy. Beryl uses the Community Associations Institute National Reserve Study Standards as a baseline to create or update your custom Reserve Study. Florida Statutes requires Home Owner and Condominium Associations to fund a reserve account for certain capital expenditures and deferred maintenance, which is expected to exceed $10,000.
The reserve contribution must be computed using a formula which is based upon the estimated remaining useful life and the estimated replacement cost or deferred maintenance expenditure for each reserve item. Reserve study Includes:
- Easy to Read and Understand Report
- Identify Qualifying Assets
- Establish Replacement Costs
- Determine Useful Life
- Project Remaining Life
- Compute Funding Requirements
- Finding and Recommendations
- Charts, Graphs, and Photographs
A Reserve Study is made up of two parts
1) the information about the physical status and repair/ replacement cost of the major common area components the association is obligated to maintain (Physical Analysis); and