Things To Look For When Hiring A Company For Capital Reserve Study
Thanks to the explosive growth of community association industry, more than 60 million Americans live in planned communities now, as compared to almost none about 25 years ago. This expansion is single-handedly responsible for giving rise to the need for the use of technology and formal education in the field.
In the initial years of community associations, prospective buyers were almost completely unaware about the functioning of community living. It was the board members who voluntarily took up the management of the association. Right from the legal aspects, capital, to smallest of the complications of homeowners, it was these board members who took care of everything with all the knowledge that they had.
Birth of Reserve Study
Over time, boards started looking for professional help to take care of all the different aspects of managing the association. This gave rise to the need for capital reserve studies. While the reserve study industry is about 25 years old, the number of service providers has grown at a startling rate. As with almost every other thing, this progress too is followed by confusion.
Confusion on choosing a professional company for capital reserve studies
Apart from the increasing number of providers, another aspect that worsens the dilemma is that there are no specific guidelines when it comes to capital reserve study and who has the right to conduct them.
If a company for capital reserve study is what you are looking for, the points mentioned below can help you make an informed decision.
Important Points to Remember When Hiring a Capital Reserve Study Company
- Experience- It is very important to make sure that the company you are choosing has professionals who are skillful and has the analytical ability for handling the capital assets of your association. Try to search for the experience and background of the company. Their credentials, number of studies they conducted in last few years, qualifications of the employees, etc. to make sure that they have a good combination of skills and experience.
- Local Company- Make sure that you go for a local reserve study company as they carry many advantages. When you hire a local company, the most significant advantage will be the ability to communicate easily about any changes or issues that you might have. Moreover, their cost estimates and useful life will be more accurate and tailored as per the local conditions.
- Cost- The cost of hiring a capital reserve study should be an important factor while choosing one. Consult with multiple service providers and compare their costs to ensure that the company you want to select is not overcharging.
Capital reserve study conducted by a professional is highly significant as it helps in creating an accurate long-term plan for ensuring the success of an association. Make sure that you keep the above points in mind to ensure that your association doesn’t suffer from financial difficulties.