Kickstart the Year: Why Q1 Is Ideal for Reserve Study Planning

The start of a new year brings fresh budgets, new board priorities, and an opportunity to set your association up for long term financial stability. For condo associations and HOAs, Q1 is the ideal time to focus on reserve studies in Rhode Island, before small issues turn into major financial stress later in the year.

Starting early to update an existing report or planning your first one creates clarity, reduces risk, and helps boards make confident decisions all year long.

Why Q1 Sets the Foundation for Smart Reserve Planning

1. Reserve Studies Align With Annual Budgeting

One of the most common challenges boards face is understanding the difference between reserve and operating budgets.

• Operating budgets cover day-to-day expenses (landscaping, utilities, management fees).

• Reserve budgets prepare for major repairs and replacements like roofs, siding, pavement, and mechanical systems.

By reviewing or updating your reserve study in Q1, boards can ensure reserve contributions are accurately reflected in the annual budget which avoids guesswork or underfunding.

2. Proactive Planning Helps Avoid Special Assessments

One of the biggest benefits of early reserve planning is that reserve studies help avoid special assessments.

When boards wait until mid-year (or worse, when something breaks), there’s often no time to adjust funding gradually. Q1 planning allows associations to:

• Forecast upcoming capital projects

• Adjust contributions before costs escalate

• Communicate clearly with owners early in the year

  
  

3. Q1 Is the Best Time to Update Your Reserve Study in Rhode Island

Many associations only think about reserve studies when problems arise but updating your reserve study in Rhode Island on a regular cycle is key.

Starting in Q1 ensures:

• Inspections can be scheduled before peak construction season

• Cost estimates reflect current market conditions

• Inflation assumptions are adjusted early

This is especially important given the role of inflation and cost escalation in reserve planning, which continues to impact materials and labor costs.

Physical vs. Financial Analysis: Why Timing Matters

A comprehensive reserve study includes both:

• Physical analysis – evaluating the condition and remaining useful life of major components

• Financial analysis – determining how much money should be set aside and when

Conducting this physical vs. financial analysis in reserve studies early in the year gives boards the full picture before making funding or repair decisions.

Creating a 30-Year Capital Plan With Confidence

Reserve studies are about creating a 30-year capital plan that guides the association through predictable expenses over time.

When planned in Q1:

• Long-term funding strategies are easier to implement

• Boards can prioritize projects logically

• Associations are less likely to fall behind

This long-term approach is how reserve studies protect property values and support owner confidence.

Avoiding Common Reserve Study Mistakes

Waiting too long is one of the most common reserve study mistakes boards make.

Others include:

• Relying on outdated cost assumptions

• Underestimating component lifespans

• Treating the reserve study as a one-time document

Starting early in the year allows boards to use the study as a living financial tool.

What Rhode Island Law Says About Reserve Studies

While what Rhode Island law says about reserve studies can vary depending on governing documents and association type, boards still carry a fiduciary responsibility to plan responsibly.

Regular reserve studies demonstrate:

• Due diligence

• Financial transparency

• Proactive risk management

All of which are critical if an association is ever questioned about funding decisions.

Is Your HOA or Condo Association Underfunded?

Q1 is the perfect time to ask: Is your HOA or condo association underfunded?

A reserve study provides objective insight into:

• Current funding levels

• Future liabilities

• Whether contribution levels are realistic

Identifying gaps early gives boards time to correct course gradually rather than reactively.

Choosing the Right Partner for Your Reserve Study in Rhode Island

Not all reserve studies are created equal. Finding the right partner for your reserve study in Rhode Island ensures:

• Accurate inspections

• Realistic cost projections

• Clear, board-friendly reporting

• Local knowledge

An experienced provider won’t just hand over a report. They will also help boards understand the results and apply them strategically.

Reserve Studies FAQ: Why Start Now?

Q: How often should we update our reserve study? Most associations benefit from updates every 3–5 years, with annual reviews.

Q: Can we wait until later in the year? You can—but Q1 offers the most flexibility, better scheduling, and smarter budgeting outcomes.

Q: Do small associations really need a reserve study? Yes. Even small associations face major capital expenses, and planning early reduces financial risk.

Have more questions? Read our comprehensive Reserve Studies FAQs.

Final Thoughts on Q1 Reserve Study Planning

Starting reserve study planning in Q1 gives boards clarity, control, and confidence. From budgeting accuracy to long term capital planning, reserve studies in Rhode Island are most effective when they guide decisions.

If your association is planning ahead this year, Q1 is the moment to set the tone for financial stability and protected property values. Contact us at Hennessy Reserve Partners to start your planning process.