The primary purpose of a Reserve Study is to offer recommendations as to the amount of money a community, building or other organization should set aside on a yearly basis for the future replacement or major refurbishment of their commonly owned elements.
The Falcon Group believes that a properly funded capital reserve program is the right formula for keeping a community’s physical assets in prime condition while providing some key benefits to residents. We strongly recommend updating your Capital Reserve Study Every 3 years.
A regularly updated Reserve Study can provide the following benefits:
- Maintaining and/or increasing property values by maintaining exterior appearances through timely repair or replacement of common elements.
- Facilitating project efficiency and cost effectiveness, as well as, minimizing disruptions and unit owner inconvenience by allowing the association to secure contractors to complete an entire project during a finite and desired schedule.
- Reducing the likelihood of member dissatisfaction associated with the passage of large or sudden assessments.
All of our Capital Reserve Studies are prepared under the direction of a Reserve Specialist (RS) and/or a Professional Reserve Analyst (PRA).
The Falcon Group has prepared over 3,500 Capital Reserve Studies. Each Capital Reserve Study we perform is a customized analysis, prepared in coordination with our Reserve Specialist (RS) and our client, and is based on a “real-world” methodology for each item in regards to:
Evaluation for repair or replacement
Evaluation for anticipated "Useful Life"
Integrated into a repair or replacement plan and budget