Proper planning for asset repairs and property maintenance is an important aspect of maintaining the safety of buildings and infrastructure. Homeowners associations (HOAs) can do this through a reserve study NJ, a tool to plan for expenses needed for timely improvements.
A reserve study provides valuable insights into the necessary improvements and repairs a property may require in a specific period. It involves an assessment of the physical condition of common elements and infrastructure to identify and anticipate the property’s repair and maintenance needs.
A reserve study is now a requirement for constructing or renovating residential buildings in New Jersey. This mandate is stated in the newly ratified NJ law S2760, which requires cooperatives and HOAs to conduct a reserve study New Jersey every five years. The objective of the regulation is to have a sufficient reserve fund for maintaining real estate properties.
Conducting a reserve study requires expertise in building inspection, evaluation, and reserve budgeting. This can only be done by a qualified reserve specialist and a professional engineer.
A credentialed reserve specialist (RS) is someone with years of specialized experience in reserve studies. These professionals are certified by the Community Associations Institute (CAI) and consistently comply with the Professional Reserve Specialist Code of Ethics.
Reserve specialists’ output is generally more financially driven. They assess when major repairs and replacements are required and plan the reserve fund to complete the necessary improvements on time. As they also cover budgeting, many RS are competent in financial modeling.
On the other hand, a professional engineer’s approach to a reserve study is more technical. They conduct inspections of a property’s various physical components, such as HVAC systems, electrical systems, and plumbing systems. Their detailed narrative reports are ideal for aging properties and condominiums that require an in-depth analysis of building conditions.
Enlisting the assistance of engineering professionals to comply with regulatory requirements is important to keeping properties safe. Their skill set, knowledge, tools, and experience allow them to provide comprehensive inspection and reserve studies that benefit associations and communities in the long run.
Learn more about the professionals who are qualified to conduct reserve studies with this infographic by Lockatong Engineering.
