RHODE ISLAND PROPERTY ADVISORY COMPANY | ARMENY INC | HENNESSY PROPERTY MANAGEMENT
Reserve Studies FAQs
Exploring reserve study options can raise a lot of questions for common interest communities. We answer your questions about everything from what's included in a reserve study to how often you should have one done so you can make informed decisions.
What is a reserve study?
A reserve study is a detailed financial planning tool used by homeowners associations (HOAs), condo boards, and common interest communities to prepare for future major expenses. Hennessy Reserve Partners prepare reserve studies by assessing the condition and lifespan of shared community assets (like roofs, pools, roads, landscaping, and common areas). We then estimate the cost of maintaining or replacing them over time. Hennessy Reserve Partners makes the reserve study process easier on the board by providing a proactive reserve plan.
A reserve study is a long-term financial planning report that helps an HOA or condo association:
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Identify all major common area components (like roofs, paving, HVAC)
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Estimate their remaining useful life and replacement costs
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Recommend annual reserve contributions
It ensures your association sets aside enough money for future repairs and replacements and reduces the need for special assessments or emergency loans.
Why do we need a reserve study?
Reserve studies play a vital role in protecting your community’s infrastructure and financial health. They help avoid large, unexpected expenses that can place a heavy burden on homeowners. A well-structured reserve plan also ensures fairness, so current and future owners contribute equitably to the upkeep of shared assets. This kind of planning supports long-term property values and helps meet legal or lender requirements that may be tied to funding or resale. Ultimately, having a proactive reserve strategy reflects strong leadership and a commitment to responsible community stewardship.
Reserve studies protect your community’s infrastructure and financial health by:
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Avoiding large, unexpected costs
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Ensuring fairness across owners
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Supporting property values
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Meeting lender or legal requirements
A proactive reserve plan demonstrates strong leadership and responsible stewardship.
Why Are Reserve Studies Important?
Reserve studies provide detailed insights into an association’s finances, helping boards to:
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Understand current reserve funds.
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Plan accurately for future expenses.
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Avoid unexpected special assessments.
Properly conducted reserve studies protect homeowners by ensuring the community can afford necessary repairs without imposing sudden additional fees.
What is the Hennessy Reserve Partners' Reserve Leadership Package?
The Reserve Leadership Package is a comprehensive, board-focused capital planning service designed to help associations lead with confidence. It goes beyond a traditional reserve study by pairing expert analysis with clear, actionable guidance and ongoing support.
This approach is built to help boards move from reactive management to proactive leadership, ensuring your community stays financially prepared, structurally sound, and well-positioned for the future.
How often should we have a reserve study done?
The best practice for reserve studies is preparing a full reserve study every 3–5 years. Reserve studies should be updated annually or every other year. Staying current ensures your funding plan reflects real costs and timelines.
Regularly updated reserve studies significantly reduce the risk of unforeseen expenses. Associations that update their studies annually significantly reduce special assessments compared to those updating every five years. This also helps maintain community harmony by avoiding sudden financial burdens on homeowners.
What’s included in a reserve study?
A typical reserve study includes:
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Physical inspection of common area components
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Financial review of reserves, income, and expenses
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A recommended funding plan with long-term projections
At Hennessy Reserve Partners, we go beyond a standard study by also including a building envelope condition assessment and a clear, actionable board-facing plan.
What components are covered in a reserve study?
Reserve studies focus on common area components. Minor maintenance and owner property are not included.
A thorough reserve study typically includes:
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Site Visit and Inspection: Professionals inspect and evaluate the physical state of the community’s assets.
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Detailed Report: Lists community components, their expected lifespan, remaining useful life, and current replacement costs.
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Financial Recommendations: Provides a long-term financial strategy to maintain sufficient reserves.
Hiring a professional reserve study firm like Hennessy Reserve Partners ensures accurate and comprehensive reporting tailored specifically to Rhode Island HOAs, condo associations, and other common interest communities.
What happens if we underfund reserves?
Boards that don’t follow recommended funding risk:
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Special assessments
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Emergency loans
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Owner frustration
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Legal issues
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Lower property values
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Financing problems for buyers
Proactive planning avoids crisis-mode decisions.
How is The Hennessy Group’s approach to reserve studies different?
Most reserve studies leave boards with lengthy, data-heavy reports and little guidance. Our approach adds a leadership layer: actionable, board-friendly plans paired with in-depth analysis. We also incorporate invasive building assessments to provide a clearer, more complete picture of your property’s condition.
What if we already have a reserve study?
Even if you’ve already conducted a reserve study, our Reserve Leadership Package can help you validate, update, and maintain your current plan or set you up for your next study with a deeper level of insight.
How much does a reserve study cost?
Costs vary by property size and complexity. At The Hennessy Group, our Reserve Leadership Package offers unmatched value and often at a lower cost than many standalone studies. Contact us for a detailed proposal.
Why Choose Hennessy Reserve Partners by The Hennessy Group for our reserve study?
At Hennessy Reserve Partners, we deliver clear, comprehensive reserve studies tailored specifically for Rhode Island homeowners associations. Our certified experts:
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Follow industry-standard methods from the Community Associations Institute (CAI).
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Provide easy-to-understand reports featuring visual aids such as tables, charts, and diagrams.
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Offer ongoing support and regular updates, ensuring HOAs remain financially stable for years to come.
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The Hennessy Reserve Partners' Reserve Leadership Package is a comprehensive, board-focused capital planning service designed to help associations lead with confidence. It goes beyond a traditional reserve study by pairing expert analysis with clear, actionable guidance and ongoing support.
Click here to contact us for more info about starting your reserve study with Hennessy Reserve Partners.
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