FAQs

Common questions across every SmartProperty function.

Reserve Studies

How are the Contributing Reserves Calculated?

Each Funding Plan type arrives at its own Annual Reserve Contributions figure differently. A Current Funding plan uses the contribution amount and the Rate of Annual Reserve Contribution Increases entered directly on that plan. A Threshold or Targeted Funding plan calculates the contribution needed instead, either to keep the reserve balance above a chosen minimum or to reach a target percent funded by a chosen year. A Ladder Funding plan uses a separate contribution amount, increase rate, and duration for each step you add, so the figure can change at set points across the plan. See Set your financial assumptions for the property level starting balance and rates a plan can draw from.

What does the SmartProperty Dashboard Include?

The Dashboard opens to a Key Insights summary: your reserve account balance, contributions to reserves, and anticipated expenditures for the year. Below that, it shows your percent funded figure with a gauge and a link to the full Percent Funded Report, a list of the year's top anticipated expenditures, and a chart of your total replacement cost broken down by category with a link to the Component Inventory Report. A funding chart then projects your reserve balance for the next 5 to 30 years based on your current funding plan, with a link to open that Funding Plan directly. What you see depends on the fiscal year selected at the top of the screen: a future year shows projected starting balances and lets you compare funding plans instead of the current-year summary. To request a reserve study proposal from SmartProperty, select "Request a Reserve Study Proposal" at the top right of the Dashboard, across from your property name. This opens the reserve study proposal page in a new browser tab.

What is a reserve study?

A reserve study is a long-term capital planning tool for an association. The study lists the major components the association must repair or replace, such as roofs, elevators, paving, mechanical systems and pools. For each component, the study estimates the Remaining Useful Life and the replacement cost. The study then calculates how much the association needs to set aside each year to pay for those replacements without a special assessment. See What a reserve study is and what it tells you for where each part of a reserve study appears in SmartProperty.

Why does an association need a reserve study?

A reserve study protects owners from unexpected special assessments and protects the long-term value of the property. Without a study, a board has no reliable basis for how much to collect for reserves. Underfunded reserves are a common cause of deferred maintenance, emergency repairs and financial strain in associations. Many states also require associations to keep a current reserve study.

How often should a reserve study be updated?

Reserve professionals commonly recommend updating a reserve study every year, with a site visit at least every three years. Regular updates keep the funding plan accurate as component condition, inflation and replacement costs change. State law can set its own schedule.

What is the difference between a Level 1, Level 2 and Level 3 reserve study?

The levels follow the standards set by the Community Associations Institute (CAI).

• A Level 1 full study builds the full component inventory from an on-site inspection. A Level 1 study is recommended for a first study, or when a long time has passed since the last full study.
• A Level 2 update revises an existing study after a site visit to observe component condition.
• A Level 3 update revises cost and Useful Life estimates and the funding plan without a site visit.

SmartProperty records each study on "Reserve Study History" as one of four types: "Level 1: Full Reserve Study", "Level 2: Reserve Study Update", "Level 3: Financial Update" and "Level 4: Pre-Construction Reserve Study". An "Inspection Date" is recorded for Level 1 studies.

What is capital planning for an association?

Capital planning identifies, schedules and funds the major repairs and replacements an association faces over a long horizon, typically 20 to 30 years. Capital planning goes beyond a reserve study. A capital plan connects reserve fund projections with project scheduling, cash flow and board decisions. A capital plan answers three questions: what needs to be replaced and when, what the work will cost, and how the association will pay for the work without a special assessment.

What is the difference between a reserve study and a capital plan?

A reserve study is the analytical foundation. The study lists components, assesses their condition, estimates replacement cost and timing, and calculates the annual reserve contribution needed. A capital plan builds on the study. The plan sets which projects come first, models funding scenarios, manages cash flow year by year and shapes how the board explains the plan to owners. The reserve study states what the association needs and what it costs. The capital plan states how the association will fund and carry out the work.

What is a Living Reserve Study, and how is it different from a traditional reserve study?

A traditional reserve study is a document that describes the property at one point in time, and the figures age from the day the document is delivered. A Living Reserve Study keeps your reserve study in SmartProperty, where components, funding plans and reports draw on the same data. The board works from current figures throughout the year, not only at budget season. The LRS Report is the Living Reserve Study report: the bundled reserve study report distributed to board members ahead of a board meeting.

Financial Management

How is the Reserve Account Balance Calculated?

The reserve account balance shown for a fiscal year is a projection to the end of that year. It is not the balance sitting in your account today.

It is calculated from three figures:

1. The current balance on your most recent completed financial statement.
2. Plus the assessments projected to be collected through the end of the fiscal year.
3. Less the disbursements projected for reserve study projects through the end of the fiscal year, whether or not those projects were budgeted.

Because it is a projection, it will not match a bank statement, and it changes through the year as actual collections and disbursements replace projected ones.

What does the Plans Section Include?

The Plans page lists every Funding Plan created for the fiscal year and compares them in a graph and a table showing Annual Reserve Contributions, the contribution per unit, Solvent, and Percent Funded. Solvent shows Yes when the plan's ending reserve balance never goes negative over the years shown, and No when it does. Select a plan to open its settings and choose its Funding Plan type. Financial Assumptions, reached from the top of the Plans page, holds the property level starting balance and rates a plan can draw from.

How do I View Funding Plan?

Open Reports in the left navigation and select the Funding Analysis tab, which lists each Funding Plan you have created, then select one by name. A Funding Plan also opens directly from the Plans page. The report opens with a chart, followed by a table of figures for each year: Annual Reserve Contributions, Starting Reserve Balance, Interest Earned, Total Reserve Funds, Anticipated Expenditures, Ending Reserve Balance, Fully Funded Reserve Balance, and Ending Percent Funded. Select View As PDF or Export to Excel to produce a copy. See Generate and export a report for the other controls available on every report.

Why doesn't my reserve study report match my approved funding plan?

The Summary of Funding Plans shows each plan's own contribution, while Expenditures by Category uses the Annual Reserve Contributions in Financial Assumptions for that fiscal year. To make them match, enter the approved plan's first-year contribution in Financial Assumptions and save.

See full article

How much should an association have in its reserve fund?

No single dollar amount applies to every association. The right balance depends on the size, age and components of your property. The most widely used measure is percent funded: your current reserve balance compared with the fully funded balance your reserve study calculates. Reserve professionals commonly describe 70% funded or higher as strong, and below 30% as weak, with a high risk of a special assessment. An association that is 100% funded has set aside the full amount the study calculates.

What does percent funded mean?

Percent funded compares the reserve balance recorded for your property with the fully funded balance. The fully funded balance is the amount your reserve study calculates the association should have set aside by now, given the age, Useful Life and current replacement cost of each component. A 100% funded association has set aside that full amount. A 50% funded association has set aside half. Percent funded is a widely used measure of reserve health and of the risk of a special assessment. Your percent funded appears on the "Dashboard". See How do I View Percent Funded Report? for the detail behind the figure.

What happens when an association's reserves are underfunded?

When a major component fails and the reserve fund cannot cover the cost, the board usually faces three options: levy a special assessment, take out a loan, or defer the repair. A special assessment is a one-time charge to every owner. Deferring a repair often raises the eventual cost as the component deteriorates further. Underfunded reserves can also lower property values and make it harder for buyers to obtain a mortgage on a unit. The earlier a shortfall is addressed, the smaller the adjustment needed to correct it.

Can an association avoid a special assessment with good capital planning?

Good capital planning makes a special assessment much less likely. A special assessment usually results from a gap in long-term planning, not from an event no one could foresee. When an association keeps a current, accurate reserve study and funds it consistently, major replacements are anticipated and budgeted years in advance. For the fiscal year you are planning, you can build up to five funding plans and compare them on the "Plans" page before your board adopts one. See Create and compare funding plans for your next budget year.

What is the difference between threshold funding and targeted funding?

Both are approaches reserve professionals use to set the annual reserve contribution. Targeted funding aims for a chosen percent funded level over time and produces a smoother contribution. Threshold funding keeps the reserve balance from dropping below a set minimum. The Community Associations Institute (CAI) recognizes threshold funding. Targeted funding is a common variation of full funding. The right choice depends on the association's goals, tolerance for risk and state law.

In SmartProperty, a "Threshold Funding" plan keeps the reserve balance at or above a minimum you set as a "Dollar Amount" or a "Percent of Current Replacement Cost". A "Targeted Funding" plan reaches a target percent funded by a year you choose. For the fiscal year you are planning, you can build both and compare them on the "Plans" page. See Create a funding plan.

Reports

How do I View Anticipated Expenditure Report?

Select Reports in the left navigation, then the Components Analysis tab, then Anticipated Expenditures. This opens a chart of anticipated expenditures by year above a table that lists each component under the year it is expected to be replaced, with its category, current replacement cost, and anticipated expenditure amount, plus a total for each year. Select Filters to narrow the report by category, location, component type, tag, or information source. Select View As PDF or Export to Excel to produce a copy of what you see. See Generate and export a report for the other controls available on every report.

How do I View Component Inventory Report?

Select Reports in the left navigation, then open the Components Analysis tab and select Component Inventory. The report opens for your current fiscal year, listing every component by category with its useful life, remaining useful life, unit price, quantity, current replacement cost, and anticipated expenditures, along with a chart of replacement cost by category. Select Filters to narrow it to specific categories, locations, or component types, or select View As PDF or Export to Excel to generate a document. You can also open it directly from the View Component Inventory Report link under Where your money is going on your property Dashboard.

How do I View Percent Funded Report?

Select Reports in the left navigation, then open the Components Analysis tab and select Percent Funded Analysis. The report opens for your current fiscal year, showing your overall percent funded figure at the top and, for every component, its useful life, remaining useful life, current replacement cost, starting reserve balance, and the reserve balance and contribution needed to reach full funding, grouped by category with totals at the bottom. Select Edit Report Settings to choose whether reserves are distributed equally across components or weighted by remaining useful life, then select View As PDF or Export to Excel to generate a document. You can also open it directly from the View Percent Funded Report link under What's the financial condition of your reserves? on your Dashboard.

Components

What is the difference between reserve expenses and operating expenses?

Operating expenses are the recurring, everyday costs of running an association: landscaping, utilities, insurance, management fees, routine maintenance and small repairs. Reserve expenses are the periodic, large repairs and replacements of major common elements, such as roofs, paving, elevators and pool resurfacing. The operating budget is spent within the year. The reserve fund is built over many years. Each major replacement is then paid for by the owners who used up the component, not by a special assessment.

What qualifies as a reserve component?

The Community Associations Institute (CAI) National Reserve Study Standards use a four-part test. A component belongs in the reserve study when all four are true:

1. The association is responsible for maintaining the component.
2. The component has a limited Useful Life.
3. The Remaining Useful Life can be reasonably predicted.
4. The replacement cost is above a minimum threshold the association sets.

If any test fails, the cost is normally paid from the operating budget or left out of the study.

Is there a national standard list of reserve and operating items?

No national list exists. The national standard is a test: the CAI four-part test. Reserve professionals apply the test to each association's own components. The final classification also depends on the association's governing documents and on state law. The governing documents define who maintains what. Boards should adopt the classification as a written policy and review the policy every year.

What are common examples of reserve components?

Typical reserve components include roofs, asphalt paving and seal coating, exterior paint, siding and waterproofing, elevators, boilers, chillers and other central mechanical equipment, pool and spa resurfacing and equipment, decks and balconies, fencing and gates, clubhouse interiors, common area flooring and furniture, security and access control systems, and large pumps. Each is a major, predictable expense the association is responsible for. Reserve contributions fund these items, not the annual operating budget.

Which items are usually paid from the operating budget instead of reserves?

Associations normally pay for these from the operating budget: general maintenance and janitorial work, landscaping and irrigation repairs, small repairs below the board's cost threshold, items replaced one at a time as they fail (light fixtures, small pumps, small valves, individual doors), interim touch-up painting, duct and drain cleaning, office equipment and trash receptacles. Keeping these small, frequent costs out of reserves keeps the reserve plan focused on the large replacements that drive contribution levels.

What is a long-lived component, and why is it left out of reserve funding?

A long-lived component is not expected to need replacement within the reserve study's 30-year horizon, or has a Remaining Useful Life no one can predict. Examples include foundations, the structural frame, buried utility lines and common area wiring. A reserve study usually lists these components but leaves them out of the funding plan, then re-evaluates them at each update.

Are items owned or maintained by unit owners included in the reserve study?

No. Under the CAI four-part test, a component must be the association's responsibility. Items the governing documents assign to individual owners are excluded from reserve funding, often windows, unit HVAC systems, interior plumbing fixtures or limited common element patios. Property maintained by others, such as a utility, a master association or the city, is also excluded. A good reserve study still lists these items, showing future boards and owners who is responsible for each part of the property.

How should a board decide whether an item is paid from operating or reserves?

Start with the governing documents to confirm the association is responsible for the item. Apply the CAI four-part test, and set a written minimum cost threshold, commonly a few thousand dollars for smaller associations and higher for large ones. Adopt the resulting component list as board policy, and review the list each year when the budget is prepared. Each reserve study update is a natural point to revisit the list with your reserve study provider. A written list shows future boards which fund pays for each component.

Maintenance

Why you cannot find a maintenance task you know exists

The Maintenance screens show tasks dated within the 12 months before today and the 12 months after today. A task outside that window still exists, and nothing on the screen widens the window.

To reach a task outside the window, open the component it is linked to and select its Maintenance Log tab.

If no tasks appear at all, check the property and the fiscal year in the top bar. Maintenance shows the current fiscal year.

If Maintenance is missing from the left navigation entirely, either your role does not include Maintenance access, or Maintenance is not switched on for your workspace. Ask your Account Admin to confirm your role. SmartProperty switches Maintenance on for a workspace.

Portfolio Analytics

Why a property is missing from Portfolio Analytics or its figures are blank

Portfolio Analytics shows totals across the properties in your Portfolio. A property appears once SmartProperty has figures for it.

If the page reads "Portfolio Analytics Unavailable", Portfolio Analytics is not switched on for that Portfolio. SmartProperty switches it on.

If the Portfolio opens but a property is missing, SmartProperty does not yet have figures for that property.

If a property appears with blank figures, its reserve study data has not reached Portfolio Analytics yet.

Portfolio in the top navigation is shown only to roles that include Portfolio Analytics access.

Files & Photos

Which photo and file types can I upload, and what are the size limits?

Photos must be .jpg, .jpeg or .png and under 12 MB. A file with any other extension is rejected.

Library > Files accepts a wider range of types and allows larger files.

The photo rule is the one that catches uploads from a phone, so check the format before you upload.

If Add Photos or Add Files is not shown, your role may be view only. On Library > Files the buttons are also hidden while a search filter is active, so clear the search first.