Reserve funds fuel the projects that might need attention in the coming times. Any property does not stay the way it is forever. It has to go through modifications that arise from the demand of the changing needs of the home-owners, or also from the expansion and development plan that is envisaged at the initial stages of property development. For example, placing CCTV cameras in various parts of the property may be a reactive solution to the problem of burglars and invaders, but does require funds that are not possible for anyone to provide without reserve planning.
So, here are some of the reserve planning solutions that hoa management company Greensboro offers to the residents of the communities maintained by them:
- Reserve study: Deck replacement, roofing replacement or creation of recreational area or improving the quality of roads in the community area etc are some of the actions that are to be taken with the passage of time. A reserve study is needed to find the remaining value of the existing infrastructure, the future value of the funds accumulated and the depreciation factor; all of these require serious calculations and yearly assessments. The idea is to make money available and also to ensure that the homeowners are prepared mentally as well as financially to welcome all these changes.
- Raising and appreciating the value of reserve funds: HOA management companies need to hire investment professionals to ensure that the reserve funds grow over a period of time. The reserve funds are maintained in separate accounts that attract interest and also show appreciation like the equity instruments. Thus, professional fund managers take care of the reserve fund and generate report of appreciation or status of the funds on yearly basis and present it to the board.
- Suggesting ways to catch up with the fund shortage: Though planning is essential, but it cannot give sure-fire guarantee of successful materialization. There may arise some situations where reserve funds or a portion of these are diverted to some other cause that demanded immediate attention. Thus, there is a meeting required to make the homeowners understand the situation and encourage them to chip in for making up the losses.
Reserve fund planning and maintenance is crucial for the future growth of any property. If you have paid attention to this aspect of HOA management, you definitely have shown future-centric approach and it would surely pay you handsomely when the time comes.