A Level 1 Reserve Study is the most comprehensive and detailed type of reserve study. It’s typically conducted for properties and associations performing a reserve study for the first time or after a long period without one.

• Includes:

  • On-site inspection of all accessible components.
  • Inventory of components: Identifying and listing all major assets that require repair or replacement (e.g., roofs, elevators, parking lots).
  • Condition assessments: Evaluating the condition of each component.
  • Cost estimates: Estimating the replacement or repair costs of each component.
  • Component lifespan: Determining the remaining useful life of each asset.
  • Photos: Capturing colored photographs of each component.
  • Financial Analysis: Reviewing the HOA’s reserve fund status and suggesting a funding plan based on the findings.

• Recommended For:

  • First-time reserve study clients.
  • Large or complex communities with many assets.
  • Properties that have never had a comprehensive reserve study.

A Level 2 Reserve Study involves a site visit and an update to an existing reserve study. It is typically conducted every three to five years to ensure that the reserve fund is on track and to reflect any changes in the condition of the components.

• Includes:

  • Site visit to visually inspect and update the previous component list.
  • Reassessment of components: Reviewing condition assessments, useful life, and cost estimates.
  • Photographs: Capturing updated photographs of components.
  • Updated Financial Analysis: Revising the reserve fund status and the funding plan based on current data.
  • Consultation with vendors: Verifying or adjusting the replacement costs with service providers and vendors.

• Recommended For:

  • Properties that have had a full reserve study previously.
  • Associations needing an updated assessment of components and financial health.
  • Larger communities that need periodic updates to ensure long-term planning.

A Level 3 Reserve Study is an update to a previous reserve study that doesn’t require an on-site inspection. It is the most cost-effective option, usually conducted every year between site visits, focusing only on updating the financial aspects of the study.

• Includes:

  • No site visit or physical inspection: No measurements, on-site inspection, or new photographs.
  • Component list review: Updates to the component list based on changes reported by management or maintenance staff.
  • Financial Analysis update: Revising the fund status and updating the funding plan based on current data.
  • Remote research: Gathering information via communication with management, vendors, and service providers.

• Recommended For:

  • Properties that have already had a Level 1 or Level 2 Reserve Study.
  • Smaller communities or those that do not require regular physical inspections.
  • Associations looking for a more affordable way to keep their reserve study current.