Reserve Study Specialists 
Reserve Study Specialists
21777 Ventura Blvd
Suite #232
Woodland Hills, CA 91364
ph: 818-992-1312
fax: 818-992-1338
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Services
Reserve Study Specialists provides a fast, reliable and accurate Reserve Study at reasonable cost for clients at the Bay Area, Los Angles County & across California.
Our head office is based in Los Angles. Our team is present in the Bay Area satellite office every two weeks servicing our clients in Northern California.
Reserve Study Analysis with Site Inspection
Site Inspection
A field inspection will be made to verify the existing condition of the various reserve study components, their physical condition, and to verify component quantities. In place testing, laboratory testing, and non-destructive or destructive testing of the reserve study components will not be performed. Field measurements of component quantities will be made, where necessary, to determine quantities of various components.
Impact of Component life
The projected life expectancy of the major components and the reserve funding needs of the association are closely tied. Performing the appropriate routine maintenance for each major component generally increases the component useful life, effectively moving the component expense into the future, which reduces the reserve funding payments of the association.Study Method
Funding studies may be done in several ways, but we believe that the value of a meaningful funding study lies in the details. “Bulk” studies are quick, usually inexpensive, and almost always border on worthless. In our study, we will use the “Component” method because it is the only method, which allows scrutiny of the funding details. The method is pragmatic, and allows human judgment and experience to enter into the equation.Unless noted otherwise, the present cost of every reserve item in our report wii be estimated using the “National Construction Estimator”, a nationally recognized standard, and modified by an area cost adjustment factor. Where possible, known costs will be used. In addition, every reserve item will be given an estimated remaining useful life, an estimated useful life when new, and has been cast into the future to determine the inflated cost.
Equal annual payments will be calculated for each reserve item based upon a payment starting year and a payment ending year using the end of period payment method. Interest earned on accumulated reserve funds and taxes on the reserve interest will also be calculated. Initial reserve funds will be consumed as expenses occur.
We are certain that you will appreciate the level of detail provided in the report, allowing you to review each reserve item in detail.
Reserve Study Update
Keeping Your Reserve Study Current
Reserve Study Specialists believes that funding studies are an essential part of property management. People and property are constantly changing and evolving. As a result, the useful life of a funding study is at best a few years and certainly not more than five years.
This reserve study should be updated, to remain an accurate estimation of reserve funding, annually or:
- At changes in interest rates
- At changes in inflation rates
- At changes in the number of dues paying members
- Before starting new improvements
- Before making changes to the property
- After a flood or fire
- After the change of ownership or management
- After Annexation or Incorporation
Sample Reserve Study
Check out a Sample Reserve Study by clicking it.
Statement of Qualifications
Reserve Study Specialists is a professional in the business of preparing reserve studies for community associations. Our team will inspect the association improvements, and will make a complete review of all components required to complete a reserve study. A physical inspection of the components listed in this reserve study will be made. The inspection includes a review of current condition, economic life, remaining useful life, and replacement cost of all components included in this reserve study. No destructive testing will be done. Field measurements will be used not drawing take-offs.
Percent Funded
Many reserve studies use the concept of “Percent Funded” to measure the reserve account balance against a theoretically perfect value. Percent Funded is often used as a measure of the “Financial Health” of an association. The assumption is, the higher the percentage, the greater the “Financial Health”. The question of substance is simply: How much is enough? To answer the question, some understanding of Percent Funded is required. Percent Funded is the ratio of current cash reserves divided by the Fully Funded value at any instant in time. Fully Funded is defined as the present value of the sum of all reserve items divided by the expected life of each item. In essence, Fully Funded is simply the total of the average net present value of the association improvements.
Reserve items with a remaining life greater than the study life will not be included in the calculation. For example: building framing, foundations, water lines, and other long-lived items that fall outside the envelope of the reserve study are excluded from the calculation. Percent Funded is then, the current reserve balance divided by the Fully Funded value multiplied by 100 (to give a percentage). The concept of percent funded is useful when the reserve study is comprehensive, but misleading when the reserve study is superficial or constrained. As a result, we recommend that the statement “Percent Funded” be used with caution.
Our study will attempt to achieve a fully funded reserves (100% funded) during the length of the study.
Reserve Study Specialists
21777 Ventura Blvd
Suite #232
Woodland Hills, CA 91364
ph: 818-992-1312
fax: 818-992-1338
fred