Things To Know About A New Jersey Reserve Study

Every community association in New Jersey needs to have adequate funds in reserve to keep with the general repairs as well as replacement of the common area elements that form part of the association. Using a New Jersey reserve study, an association can have an effective plan for keeping up with the costs of the facilities and make sure that the members do not carry the burden when there is need for sudden repairs or replacements.

If this is your first time to hear about a reserve study, you may be wondering what it is. A New Jersey reserve study is an effective financial tool for an association-governed community which is used for planning the long term repair and replacement needs of the common area elements.  Association managed communities use the reserve studies to forecast their funding requirements for any form of repairs and capital assessment along with assessing the need for improvements in the financial reserves.

Most condos in the United States of America have made it mandatory for associations to conduct these studies at regular intervals.  The studies involve a thorough evaluation of the properties that are part of the association as well as analysis of the existing reserve funds. Depending on the on-site evaluation, a report is created which includes detailed information on the elements that may need to be repaired or replaced in the future. The report also includes details on how the association can maintain adequate funds in reserve in order to keep up with these expenses.

With the help of a New Jersey reserve study, the members of an association managed community are not required to pay for any kind of special assessment. Because detailed information about the expenses in made available in the report, the members are well aware of the costs.

For more information on a New Jersey reserve study, visit our website at https://www.lockatong.com