How Does an Association Know if its Reserves are Adequate? Is $1,000 Per Apartment Enough? $500 Per Apartment?
Every condominium is different and has different expenses and reserve requirements. Each board must make a reserve study (or analysis) of the project to determine if the association has sufficient reserves. A reserve study requires the board to determine: (i) which parts of the project the association is responsible for (e.g. walls, roof, parking log): (ii) when they will need replacement, maintenance, or repair; and (iii) how much that will cost.