Finding the Perfect Reserve Study Firm

A reserve fund is crucial for helping associations plan and budget for the future. It empowers you to maintain your community's quality by funding necessary and often costly projects, such as roofing or paving. With so many factors to consider, establishing this fund can seem complex. However, a good reserve study firm can simplify the process. Here’s a guide to help you find the right one.

1. Gather essential information

Prospective firms will need details about your association, so start by gathering information. Prepare a comprehensive description, including location, number of units, building specifications, and amenities.

2. Begin your search

Finding potential firms is straightforward. Many good property management companies keep a list of qualified firms. Alternatively, consult your local chapter of the Community Associations Institute or visit caionline.org.

3. Ask pertinent questions

Determine the criteria you'll use to evaluate candidates. Gain insight into the firm’s capabilities by inquiring about aspects such as years in business, annual studies performed, company background, experience with similar communities, funding and pricing methods, project timelines, association involvement, and guarantees offered. Identify the most crucial factors to narrow down your choices.

4. Initiate contact

Reach out to potential firms and request their standard informational materials, including previous report samples. Pose the questions you’ve developed and meticulously record their responses. Be prepared for your questions to evolve as you learn more. Don’t forget to ask for three references.

5. Evaluate and compare

With your research in hand, it's time to compare. Create a spreadsheet with your criteria in the left column and the candidate firms listed across the top. Use your findings to fill in the corresponding boxes. Consult your accountant to ensure the sample reports satisfy your federal filing requirements. Eliminate those that don’t meet your basic needs, and evaluate the remaining contenders.

6. Reach out to references

Contact the references of your shortlisted firms for brief, informative conversations. Ask whether they were satisfied with the firm’s work, if the firm has experience with similar associations, when the study was conducted, whether costs aligned with expectations, if the study was timely, and if there’s anything they wish had been done differently. Inquire whether they considered other firms, what influenced their final decision, and if they would hire the firm again. Keep your list of questions concise and respectful of their time.

7. Make your decision

You’ve gathered candidates, interviewed them, created a comparison matrix, and consulted references. With this comprehensive evaluation, you're ready to make an informed decision. Choosing the right partner can significantly impact your association’s future. By following these steps, you’re likely to find a quality firm that meets your needs.

Prepare for your community’s future today.