One of the fundamental functions of an association is the maintenance and improvement of common area assets and infrastructure.
There are several funding options to cover these costs but the most common is your association’s Reserve Funds Account.
So, how much should be in that account to cover these expenses?
To accurately determine an appropriate amount we recommend a Reserve Study. This is were you do an analysis of the physical assets plus a financial analysis of the reserve balance, income and expenses.
It seems obvious but an adequate reserve fund reduces the need to go into debt and reduce the need to levy special assessments on the owners.
Keep in mind that strict legal, financial and fiduciary responsibly for such accounts and many areas have strict regulations governing them so they need to be structured properly.
If you have any questions about your Reserve Funds account your management company should be able to guide you through it.
If they can’t, or simply don’t know how, contact me.
I Hope This Helps.
If you’d like more information on how Corner Property Management can implement an effective gutter maintenance contract for your community then contact us NOW!
Contact Tony Nardone, Managing Partner of Corner Property Management, at 973.376.3925, visit our website at www.Cp-management.com, or email Tony at Tony.nardone@CP-management.com