Though a real and immovable property has all the potential of becoming a great asset, it might not be value at a high price if it is not well preserved and maintained in great condition. Agencies, corporations, business entities and even homeowners have to prepare for the maintenance of their assets, and when the time comes that that property has to be sold or disposed of, it will definitely get a premium price as it is in a pristine condition. However, not everybody has the full capability to really work out a course of action for these kinds of possible scenarios, and most are busy managing their day-to-day activities or business causing the property or properties to be overlooked (although there is really an inclination to work on it). It is the rational explanation how such a Reserve Study is crucial, the reserve study will therefore be able to provide the property owner with all of the relevant data needed to carry out the repair, refurbishment and replacement in any of the property structures, exteriors and interior furnishings. Planning for something is difficult with little or no detailed data or information, and that in the future the reserve study report may be used as the premise for all of the plans and schedules.
The Need for a Reserve Study
A Reserve Study is a comprehensive and thorough evaluation process and also an assessment about your property's status, whatever type of asset it might be. From high-rise structures to apartment buildings, gymnasiums, hospitals, school buildings, hotels, resorts, and even houses can also be subject to a reserve study, particularly if the owner of the property is serious about protecting their properties and their value. You need to have a reserve study as it will provide all the details necessary in order to make assessments and decisions regarding the actual property and its conservation.
What Comprises a Reserve Study?
A Reserve Study is a detailed report comprising all of the relevant information which is essential with regards to managing a property and all its assets. First of all, it includes an itemized as well as categorized list of all of the features of the property - it is categorized according to the basis of if it is a structural component, a stylistic or design component, or if it is a functional component (like those of plumbing and electrical wirings). Furthermore, it also identifies each of the materials existing in a certain component and examines its present state or integrity. Secondly, the study would also distinguish the operational life of the various components, considering the number of persons who have used it, and how often it is being used. Thirdly, the study would also be including all the probable costs that is needed for the property's repair and maintenance, but it would also include projections as to where the funding can be obtained from. A Reserve Study report is indeed a valuable source of relevant data. It is certainly not an additional expense but it is rather considered as an investment which will actually benefit the owner of the property later on.
The Cost of a Reserve Study
It does not really come cheap to employ a firm to be doing a reserve study of your property, but it is something that is so critically important to your property that somehow the additional cost is good enough to justify it. It is quite challenging to execute a reserve study. It would be requiring a team of experts who will perform the assessment and evaluation of the property, in addition, another team will formulate the report and prepare all the documentation and another will review it and present their reports to the property owner. When we take a look at a report, we can only see the outcomes or those which are already collected and displayed in tables or diagrams, what we cannot see is the work that had to be done to generate that report. A full detailed report out of a Reserve Study may very well be costly, however the advantages you derive from this will be incredibly valuable in protecting your property and making sure that it will endure and, therefore, yield a higher rate of return of investment.
Choosing the Best Firm or Company to do a Reserve Study
Choosing as to which firm or company to hire to do a reserve study would really depend on the trust and confidence that the property owner has for the firm, so as to determine the best one, then it should be the most trusted and respected one in the field. Many firms will just shortchange the owner of the property by not doing a reserve study from scratch. They just simply take data from that of other sources. Therefore, property owners should be able to scrutinize the companies conducting such type services. One way to do this is to ask for client reviews and referrals – previous customers who really are pleased with their very own reserve study will most likely be happy to refer you to the right company, or you can also do a survey of other clients' experiences so that you know exactly what to expect. You can also choose your top three preferences, and afterwards arrange an appointment with them and see for yourself which firm you feel you are more comfortable to work with and which one would exude honesty and integrity. A firm's history and track record can also tell a lot about it, so it would be best to check and see their list of prior customers, and if they have had the concrete experience in doing reserve studies for different types of properties. You can also take the time to visit some of their clients' real property so that you can see for yourself if they are really doing an outstanding job of maintaining or preserving the property.
Whichever firm you end up choosing for a reserve study, make sure they have your best interests at heart and that the firm is willing enough to help you in navigating through the need for financial stability, forgo external borrowing, and would gladly provide for a sample report if asked.