Straight answers for boards and managers.
The questions that come up on nearly every first call, answered without jargon or hedging.
Reserve studies, plainly explained
What exactly is a reserve study?
It's two analyses in one document. The physical analysis inventories every common component the association must eventually replace and estimates its remaining life and replacement cost. The financial analysis runs that inventory forward against your reserve balance and contributions to show whether you're funded well enough to pay for it.
Is a reserve study required in Pennsylvania?
Pennsylvania does not impose a blanket statutory requirement the way some states do, but your governing documents, your lender, your insurer, or a secondary-market loan review may each require a current study. Boards also carry a fiduciary duty to plan for known future expenses, and a study is the standard evidence that you have.
How often should we update it?
The common cadence is a full study with a site visit every three to five years, with lighter updates in between, often annually, to refresh costs and roll the model forward. Material events like a major replacement or a large special assessment justify an off-cycle update.
How do we know if we're contributing enough?
The study runs your balance forward against every projected expense. If it stays comfortably above zero through the big replacement years, you're on track. If it dips, you see exactly when and by how much, early enough to fix it with a modest contribution change.
What happens if we just keep contributions flat?
You see it in the model before it happens in the budget. Holding contributions flat is one of the scenarios we run, and for most associations it shows a shortfall arriving in a specific year. Knowing the year is what gives the board options.
What's the difference between a reserve component and maintenance?
Reserve components are predictable, significant, and recur on a multi-year cycle: roofs, pavement, elevators. Routine maintenance is annual and small: mowing, snow removal, filter changes. Those belong in the operating budget and are excluded from the reserve model.
Can a reserve study prevent a special assessment?
It can't undo years of underfunding, but it gives you the runway to avoid one. Most special assessments happen because a large expense arrived unforecast. A study makes the expense visible years ahead, when a modest contribution increase can still absorb it.
How long does it take?
Fifteen business days from signed engagement to draft study for a typical property. The clock starts after a short onboarding call, and we need site access within four business days of kickoff. If document gathering or scheduling slips, we still keep you updated daily and adjust the target date together.
What documents do you need from us?
The declaration and bylaws, your current budget, the latest reserve balance, any prior reserve study, and invoices for recent capital projects. If something is missing we work around it and note the assumption.
Do you present to the board?
Yes, and it's included! I'd rather answer the board's questions directly than have your manager defend numbers they didn't build.
How is your fee determined?
Fixed fee, quoted before work begins, based on unit count, number of buildings, and component complexity. Portfolio and multi-property engagements are priced together.
Do you do the repair work too?
No, the firm has no contracting arm and no referral arrangements, so there's no incentive to inflate a scope or accelerate a replacement date.
Can I see an example report before we engage?
Yes. We publish a complete, anonymized Level I study so you can see the executive summary, component inventory, 30-year forecast, and funding scenarios. View the sample report.
Terms you'll see in the report
- Component
- A common element with a predictable life and a meaningful replacement cost.
- Useful life
- How long a component is expected to last when new.
- Remaining useful life
- How many years are left based on observed condition, not just age.
- Threshold funding
- A plan that keeps the balance above a chosen floor through every projected year.
- Baseline funding
- A plan that keeps the balance just above zero; it's the riskiest defensible approach.
- Special assessment
- A one-time charge to owners when reserves can't cover an expense.
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