At Team Engineering, we offer both reserve studies and transition studies for condominium associations. Although they are both typically purchased by condominium associations, they are two distinctly different services – with separate end goals.
A Reserve Study, which is sometimes referred to as a “capital reserve study,” can help condominium associations plan their budgets for future capital repairs and replacements to both the property and major building components. The study will assist them in knowing how much money they should plan on setting aside in order to complete the various projects required over the next 20 to 30 years. If they do not plan for these expenditures now, they will likely be faced with a large special assessment at some point in the future for these major items. Reserve studies should be updated annually to assist in the budget planning process. Major updates are normally done on a 5 to 7 year cycle.
On the other hand, a transition study is a one-time event which is used by condominium associations in order to assess and determine the condition of the property before it is transferred from the builder to the association. The service includes a punch list of items that the builder is typically asked to correct and fix before the property is transferred over to the association.
Both a reverse study and a transition study provide condominium associations (or a property management company who work with them) very valuable and much-needed information. In the case of a reverse study, knowing ahead of time how much money needs to be budgeted for service and repairs is crucial; in fact, it’s such important data to have, that we suggest it is updated every year around the same time that the annual operating budget is drafted.
Because a transition study will pinpoint any problems that are found in the property, it will protect the association from taking over construction projects that are inferior or incomplete. This can save the condominium association or property management company thousands of dollars in repairs.
At Team Engineering, a registered professional engineer (PE) will conduct both the reserve study and a transition study. As opposed to other companies that might send out a less-experienced employee to do these important studies, our engineers have a great deal of experience and insight on buildings – and they are well-versed on the entire process and what to look for.