Five-minute read.

New Year, New Projects: Reserve Studies for HOA Management

A new year brings fresh opportunities and new responsibilities for community association board members. January is often a time for reflection and planning: reviewing last year’s performance, setting financial goals, and prioritizing projects that will impact the community for years to come.

For HOA boards, this planning phase is especially important. One of the most valuable tools available to support strong financial planning and effective governance is a reserve study.

Whether your community is planning roof replacements, roadway repairs, mechanical upgrades, or long-term capital improvements, reserve studies provide the roadmap that helps boards plan responsibly, protect assets, and maintain property values.

Why the Start of the Year Is the Ideal Time to Review Reserve Planning

Beginning the year with a clear financial strategy sets the tone for everything that follows. Boards that prioritize reserve planning early are better positioned to:

• Align budgets with long-term maintenance needs

• Reduce the likelihood of special assessments

• Communicate more transparently with homeowners

• Make confident, data-driven decisions

• Fulfill fiduciary responsibilities as part of effective association management

Strong reserve planning is a cornerstone of successful HOA management and condominium association management, ensuring communities are financially prepared for both routine maintenance and unexpected repairs.

What Is a Reserve Study and Why Does It Matter?

A reserve study is a comprehensive evaluation of a community’s major common-area components, including their condition, estimated remaining useful life, and projected replacement costs. The study helps determine how much money should be set aside each year to ensure funds are available when repairs or replacements are needed.

In both HOA management and condominium association management, reserve studies play a critical role in guiding board decisions and supporting long-term financial health.

Without an up-to-date reserve study, associations risk:

• Underfunding critical repairs

• Deferring maintenance that leads to higher costs later

• Placing financial strain on homeowners

• Making decisions based on assumptions rather than data

Simply put, reserve studies are not just a financial document, they are an essential planning tool in professional association management.

Common Challenges Boards Face with Reserve Studies

Many boards working with HOA management companies encounter similar questions year after year:

• How often should our reserve study be updated?

• What funding level is appropriate for our association?

• How do we balance reserve contributions with homeowner affordability?

• How should reserve studies influence our annual budget process?

• What happens if our reserve study is outdated or incomplete?

These are common and important questions in both association management and condominium association management, particularly as communities age and infrastructure needs evolve.

Reserve Studies 101 Webinar: Learn the Essentials

To help board members start the year informed and prepared, we are excited to offer our Reserve Studies 101 Webinar on January 29th.

This educational session is designed specifically for HOA and condominium association board members, providing a clear, practical overview of reserve studies and how they fit into modern HOA management and association management practices.

During the webinar, attendees will learn:

• The purpose and structure of a reserve study

• Key terms and concepts every board member should understand

• When and why reserve studies should be updated

• How to use reserve studies as a decision-making tool

• Best practices for long-term financial planning in condominium association management

Featuring Special Host: The March Groups very own, Nico March and Industry Professionals

The webinar will be hosted by Nico March, along with a panel of industry professionals experienced in HOA management, association management, and condominium association management. Their real-world expertise will provide valuable insights, practical examples, and guidance board members can apply immediately.

Whether you are new to board service or have years of experience, this webinar offers an opportunity to strengthen your understanding of reserve studies and improve your effectiveness as a board member.

Start the Year with Confidence and Clarity

A new year often means new projects; some planned, some unexpected. Having a solid understanding of reserve studies allows boards and their HOA management partners to plan proactively rather than reactively.

By investing in education now, your board can:

• Improve long-term planning

• Strengthen financial stability

• Enhance homeowner trust

• Protect property values

• Support best practices in association management

We encourage all board members to attend and make reserve planning a priority in the year ahead. A well-informed board, supported by experienced HOA management and condominium association management professionals, is the foundation of a successful community.