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Kuester Management Group Commends Regular HOA Reserve Studies
In a new statement to the press, Kuester Management Group highlights the value of routine reserve studies for HOA communities.
By: Kuester Management Group
"Capital improvement projects, including both planned and emergency repair needs, need to be factored into the HOA budget," comments Bryan Kuester, President of Kuester Management Group. "Typically, something like a new sidewalk, or a replacement roof for the HOA clubhouse, isn't going to come out of the operating budget. Rather, it comes out of the reserve fund, which is money set aside specifically for these big projects."
To ensure that the reserve fund is adequate for upcoming needs or emergency repairs, the HOA Board is tasked with conducting regular reserve studies. "Assess how much money is in the reserve fund and compare it with projected capital repair and replacement needs," Kuester advises. "This is a critical aspect of the HOA's basic financial responsibility and is something that we recommend doing once every couple of years."
In some situations, the current reserve fund may be deemed to be insufficient, prompting a need for a special assessment. In other cases, the reserve study may simply prompt a discussion about how best to invest the funds already on hand.
"Simply put, every HOA Board needs to have robust knowledge of the community's finances, and that certainly includes the reserve fund," comments Kuester. "We recommend regular reserve funds to ensure that the HOA has everything it needs to maintain common areas, and ultimately to preserve property values on behalf of its members."
Kuester Management Group provides guidance to HOA communities throughout North and South Carolina. Learn more about the company and its services by visiting www.kuester.com.
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. More information is available at www.kuester.com or @KuesterCompany.
Kuester Management Group