What is Reserve Study?

A reserve study has two halves. The physical analysis inventories every component the association must replace — roofs, siding, pavement, mechanical systems — and estimates remaining useful life and replacement cost. The financial analysis compares current reserves and contributions against that schedule and recommends a funding plan.

Many states now require reserve studies on a fixed cycle, often every three to five years, with an annual update. Even where optional, lenders and insurers increasingly want to see one.

For boards, the reserve study is the single most useful planning document in the association. It converts vague anxiety about future costs into a dated schedule you can budget against.