How Often Should You Update Your Reserve Study in Rhode Island

If you’re serving on the board of a homeowners association (HOA), condo board, or other community association, one of your most important responsibilities is ensuring your community is financially prepared for the future. That’s where having reserve studies in Rhode Island comes in. The frequency of updates, are among the Reserve Studies FAQ. There’s no question that having a reserve study is important but it’s also important to know how often you should update your reserve study in Rhode Island.

Why Reserve Studies Need Updates

Reserve studies are a financial snapshot but aren’t meant to be a one-time action. Reserve studies are a living planning tool designed to evolve with your community and there are a lot of reserve study components. With Rhode Island’s weather patterns, aging infrastructure, and ever changing construction costs projections are often changing. Last year’s projections may not match today’s realities.

By updating your reserve study regularly, your board ensures that funding plans remain accurate, fair, and transparent for current and future owners.

Recommended Frequency to Update a Reserve Study in Rhode Island

Industry Standards

• Full Reserve Study: Every 3–5 years

• Reserve Study Update with Site Visit: Every 3 years

• Reserve Study Update (No Site Visit): Annually

Rhode Island Specifics for Reserve Studies

Because Rhode Island communities deal with coastal weather, salt air corrosion, and frequent freeze-thaw cycles, it’s often best to err on the side of more frequent updates. Many associations in the state choose to do a formal update every year and a comprehensive full study every 3 years.

Situations That Call for an Immediate Update

Even if your last reserve study isn’t “due” for renewal, certain circumstances can make an immediate update necessary:

1. Unexpected Damage or Repairs

   • Example: A condo building in Newport discovers severe water damage in the underground garage. The cost of repairing concrete spalling was far higher than originally estimated. Updating the reserve study gices the board a clear funding plan to cover the emergency without overburdening owners.

2. Major Capital Project Completion

   • Example: A Providence HOA just replaced all roofs ahead of schedule. By updating the study reset with the component timelines gives homeowners confidence that contributions will remain steady.

3. Significant Cost Increases

   • Example: A Warwick association had originally budgeted $100,000 for road replacement. With inflation and rising asphalt costs, updated bids showed a new cost closer to $200,000. Updating the reserve study allowed the board to adjust contribution rates before falling behind.

4. Membership or Developer Transition

   • Example: A newly turned-over HOA in Narragansett inherited reserves that weren’t properly funded by the developer. An updated reserve study helped them establish an honest baseline and restore financial health.

   
   

Your Rhode Island Condo Association Needs a Reserve Study! Don't hesitate. Contact us now to start the process.

Benefits of Regularly Updating Your Reserve Study

• Accurate Funding Plans: Avoid special assessments and emergency loans by knowing what’s coming.

• Transparency for Homeowners: Builds trust and confidence in the board’s leadership.

• Compliance with Lenders: Many banks and mortgage underwriters now require up-to-date reserve studies for loan approvals.

• Better Long-Term Planning: Prevents deferred maintenance that can lower property values.

Reserve budgets and operating budgets are not the same. Learn about the difference between reserve and operating budgets here.

How Hennessy Reserve Partners Can Help Determine How Often to Update Your Reserve Study in Rhode Island

At Hennessy Reserve Partners, we specialize in Rhode Island Condo Association Reserve Studies, HOAs, and other common interest communities. Through the reserve study process from start to finish Our Leadership Package goes beyond the standard reserve study:

• Clear, board-friendly reporting

• Invasive building assessments for accuracy

• Actionable capital planning guidance

• Ongoing support between updates

We don’t just hand you a report and walk away. We help your board stay proactive, prepared, and confident.

Final Word

So, how often should you update your reserve study in Rhode Island?

• Plan for an annual update, with a full study every 3 years.

• Don’t wait. Update immediately after major projects, unexpected damage, or cost changes.

There are many components in a reserve study and staying on top of it is about protecting your community’s financial health, property values, and peace of mind.

Let's get started planning your community’s future. Contact Hennessy Reserve Partners today to schedule your reserve study.