HOW OFTEN SHOULD A RESERVE STUDY BE DONE
How often should you conduct or update a reserve study is a simple question of need. Industry guidelines recommend an annual update with an onsite update at least once every three years. Some States have articulated their own requirements and recommendations on how often a reserve study should be performed. Virginia for example requires that a reserve study be conducted at least once every five years, while Washington State recommends an annual update and review.
Best practice, regardless of applicable statues or governing document requirements, involves regularly updating your reserve study on a cycle that enables you to sufficiently budget and maintain adequate reserves. So look at the specific circumstances of your homeowner (HOA) or condominium association and gauge the accuracy of your latest reserve study after one year. Invariably you will find that after a year, your reserve study is more of a historical document rather than a current and accurate snapshot of your association. Review your reserve study regularly and make a determination as to whether you need to update, as a lot can change in a year.
What you should do:
- Review the requirements in your state, see our Law Guide;
- Review your latest reserve study and gauge it’s validity and usefulness;
- Talk to your reserve study provider for recommendations on best practices.