If you’re on an HOA board in Arizona, you know that planning ahead is one of the most important responsibilities you have. One of the best tools to help your community prepare for the future, whether it is a townhome, condominium, or master-planned community, is a reserve study.
What is a Reserve Study?
A reserve study is a financial planning tool that helps your HOA plan for major repairs and replacements that will happen over time depending on the association’s maintenance responsibilities, assets, and ongoing maintenance. This includes things like:
- Roof replacements
- Pool resurfacing and pool furniture
- Parking structures
- Road repairs and asphalt maintenance
- Playground or common area updates
Instead of being caught off guard when something big needs to be replaced, a reserve study gives your board a clear roadmap for how much money should be set aside in your reserve fund.
Why is a Reserve Study So Important for Arizona HOAs?
Here in Arizona, our communities face unique challenges like intense summer heat, monsoon storms, and constant sun exposure which can accelerate wear and tear on roads, landscaping, and amenities. Without a solid long-term plan, unexpected expenses can lead to:
- Special assessments that frustrate homeowners
- Deferred maintenance that lowers property values
- Financial strain for the community
A reserve study helps avoid all of this by:
✔ Predicting upcoming expenses based on the useful life of your assets
✔ Setting realistic reserve contribution goals
✔ Giving your board confidence when planning budgets year over year
How Often Should an HOA Do a Reserve Study?
Experts recommend a full reserve study every 3–5 years, with annual updates. This helps keep your plan accurate and realistic as costs change and community assets age.
Bottom Line
A well-prepared reserve study can be a useful tool for boards and community management professionals to reference during budget season as well as regular board meetings when making decisions for the community. A professional management partner can help the board by tracking maintenance and repairs, replacements, or upgrades to share with the reserve professionals during the updates.
Want to Learn More About HOA Budgeting and Financial Planning?
Contact us to learn more about how our team of Arizona community management professionals partners with local boards to plan
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