What a reserve study is and what it tells you
Overview¶
A reserve study is a financial planning document. It projects the future replacement cost of your association's components, such as a roof, a pool, or an elevator, and sets out how your association plans to pay for those replacements over time. Account Admins, Property Managers, Reserve Analysts, and HOA Board Members use it to understand how well funded the association is and to support the decisions presented in the "LRS Report". SmartProperty builds your reserve study from your component data and the funding plan your association has adopted.
Setup¶
Viewing reserve study information requires access to the relevant modules on your property. See What Can Each User Role Do? (Role Permissions Reference) for what each role can see.
The reserve study itself is prepared by a reserve study provider, who may be a SmartProperty Reserve Analyst or an outside provider your association works with.
Each study's record, including its provider and dates, is kept on the property's "Reserve Study History". Account Admin, Property Manager, CFO and Reserve Analyst can add or edit an entry. HOA Board Member, Finance Manager and Project Manager can view the history.
How-to¶
Open the property. The "Dashboard" shows your current percent funded, a single figure summarizing how closely your reserve fund matches your projected future needs.
Select "Components" in the left navigation. This opens the "Components" page, where every component lists a "Useful Life" and a "Remaining Useful Life". These two numbers are the inputs behind your reserve study's replacement timeline.
Select "Plans" in the left navigation. This opens the "Plans" page, where your association's funding plans are listed. A funding plan sets out the assessments and contributions your association uses to reach its target level of funding over time.
Open "Property Settings" and select "Reserve Study History". This opens the record of each reserve study completed for the property, including its provider, its date, and its study type.
Reference¶
Key terms¶
Component. A physical part of the property that your reserve study plans to replace, such as a roof, a pool pump, or an elevator.
Useful Life. The expected lifespan of a component, in years, from installation to replacement.
Remaining Useful Life (RUL). The years remaining before a component requires replacement.
Percent funded. A figure describing how closely your reserve fund matches your projected future replacement needs.
Funding Plan. A multi year contribution strategy your association uses to fund future reserve expenditures.
LRS Report. The Living Reserve Study report. This is the bundled reserve study report distributed to board members ahead of a board meeting.
Reserve study types¶
A reserve study recorded on "Reserve Study History" is one of four types.
Level 1 Full Reserve Study. The only type that includes a physical inspection. An inspection date is recorded for this type only.
Level 2 Reserve Study Update.
Level 3 Financial Update.
Level 4 Pre-Construction Reserve Study.
Troubleshooting¶
If a figure on the "Dashboard" looks out of date after you make a change elsewhere in the product, refresh the page.
Some numbers, such as percent funded, can differ between screens. The "Plans" page uses the starting reserve balance saved with each funding plan. Reports for the current year default to "Display Latest", which uses your property's current reserve balance. To see a report with the plan's saved figures, open "Edit Report Settings" and switch to "Display Original". For a related difference in annual reserve contributions, see How do I make my reserve study match my approved Funding Plan?