Property Condition Assessment NJ

A New Jersey reserve study is a very important tool to homeowners associations. It is an analysis of the condition of a physical structure and the status of the capital reserve fund from which major capital improvements or replacements of various components will be paid.   The reserve study report is comprised of findings from an independent consultant and it gives the board members and owners a budget tool for planning what and when anticipated major expenses will be needed as well as how much and when to fund the reserve for paying for them. A reserve study plays a very important role in properly maintaining association common areas. It directly affects property values. Having a good plan can preserve or enhance property values whereas a poor or nonexistent plan will have the opposite effect. With the budget pressures in today’s depressed property value market, many community associations are not increasing their reserve assessments annually. However, inflation affects future m