In as much as a real property has the potential to become an asset, it will not always be of the same value if it is not well-maintained and kept in excellent condition. Organizations, governments, institutions, businesses and even home-owners has to plan for the upkeep of their properties and in the event that there is a need to sell or dispose of the property, then it will fetch a higher price since it is in good condition. But not everyone has the capacity to really work up a plan of action for such eventualities, and most will be busy with running their day to day operations or business that although there is the intention to work on it, it is often overlooked. This is the reason why a Reserve Study is important, the reserve study will be able to provide the property owner with all the information needed to plan for the repairs, renovation and replacement of any of the property structure, exteriors and interior fixtures. It is difficult to plan for something without any concrete data or information and the reserve study report will be used as the basis for the plans and schedules in the future.
Do You Need A Reserve Study?
A Reserve Study is a systematic and detailed course of assessments and identification of the current status of your property, whatever kind of property it may be. From high rise buildings, to apartments, to gymnasiums, school buildings, hospitals, resorts, hotels and even houses can be subjected to a reserve study, especially if the property owner is serious about protecting his or her assets and its value. You need a reserve study since it will contain all the necessary information needed to make decisions and judgments on the property and its upkeep. For example, a newly built school building will have less need for maintenance and repairs, than an old building, but when does it need to be repaired? It is a reality that consistently providing period maintenance checks and acting on smaller issues before it become full-blown problems is more cost-effective. Without a doubt, if you want to make sure that the value of your property is protected and will continue to increase in value, then you do need a Reserve Study.
What Does a Reserve Study Contain?
A Reserve Study is a comprehensive report that contains all the necessary information that is vital to the management of the property and its assets. First, it contains an itemized and categorized list of all the components of the property, it is classified according to whether it is a structural component, an aesthetic or design component and whether it is a functional component like electrical wirings and plumbing. It also identifies all the materials that are present in that component, and an assessment of its current status or integrity. Like for example, the walls and insulation is made up of concrete or other materials and how long is it expected to last. Secondly, the report would also identify the lifespan of the different components taking into consideration the number of people using it and how often it is used, like a school building would be used more than a church building and therefore would have more need for repairs than the latter. Thirdly, the report would also include the costs that would be involved in the repair and maintenance of the property and would also provide a forecast into where the funding could be sourced from. The Reserve Study report is a gold mine of information and commission one is not an added expense but rather a value laden investment that will help the property owner in the long run.
How Much Does a Reserve Study Cost?
Hiring a firm to do a Reserve Study on your property does not come cheap, however, this is something that is so vital to your property that it is well worth the expense. Conducting a reserve study is complicated, besides it involves a team of professionals who will conduct the evaluation and assessment of your property, moreover, another team will be formulating the report and preparing the documentation and another one will be discussing and presenting to you their findings. When we look at a report, we only see the results or what is already gathered and presented in tables or graphs, what we do not see is the work that is done to come up with that report. A full report from a Reserve Study may be expensive but the benefits that you get from it in protecting your property and making sure it will last and fetch a higher return of investment is invaluable.
How To Choose The Best Firm to Do The Reserve Study?
The choice of what firm to hire to do the reserve study really depends on the trust that the property owner have on the firm, thus in order to find the best one, then it should be the one most trusted in the industry. Some firms will shortchange the property owner by not doing the reserve study from scratch or to just take on data from other sources, thus they need to scrutinize the firms that offer such services. One way is to ask for referrals, previous clients who are satisfied with their own reserve study will be glad to point you to the right firm, or you can make a survey of their experiences so you would know what to expect. Also, you can identify your top three choices and then schedule a consultation with them and see for yourself which one you would feel more comfortable with and who would inspire trust and honesty. Experience and track record also tells a lot about a firm, so check to see their list of clients, and whether they have had experience in doing reserve studies on different kinds of properties. You can also visit the actual property of their clients and see for yourself if they are indeed doing a stellar job at maintaining the property.
Whatever firm you choose, see to it that they have your best interests at hand and that they are willing to help you navigate through the need for financial robustness, for avoiding external borrowing and even ask for a sample report which they would gladly provide.