Property managers are long-term thinkers. Property management companies assist condominium associations in maintaining the buildings and grounds associated with these complexes. In addition to many other responsibilities, property managers work with their condominium associations to ensure that sufficient reserve funds are being collected for repair and replacement of all major capital expenditures for building systems and components for the upcoming 15, 20 or 30 years.
Team Engineering works with property managers to evaluate the current condition of all major building systems and components. The engineer’s assessment will take into account building materials used, construction quality, remaining useful life and ultimate replacement costs of the material or building components. A thorough Reserve Study is critical to getting an accurate projection of repairs for budgeting.
Life-cycles in dollars and cents. The data from the engineer’s assessment is entered into a computer program which calculates annual reserves that will be needed at the time when the capital expenditure is expected to occur. With this knowledge, property managers and their clients have a snapshot into future liabilities that may put a strain on their current reserve fund. By comparing current funding levels with these forecasted expenditures, we can provide useful projections that indicate where shortfalls may occur.
If short falls occur, funding options are developed by Team Engineering for the property manager to discuss with their clients and choose the option that works best for them. As these repairs and upgrades are implemented, we update the projected reserve budget for a condominium association on an annual basis. A major review every 5-7 years is a good strategy for maintaining a healthy reserve fund.
Effective cost management is the hallmark of a successful property manager. Team Engineering helps to keep the reserve fund locomotive on track!