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A Property Management Company Serving Condominiums and HOA’s

Wise Property Solutions is a property management company which is the region’s leader in community association management- the only certified and accredited condominium association management and HOA management company with offices in Knoxville and the Tri- Cities, serving the Mountain South. At Wise Property Solutions, we are contributing to our client communities through our commitment to the industry’s best practices and ongoing professional development. Our team of highly trained property managers strives for an efficient, problem-free community with 100% Satisfaction Guaranteed.

Devoted exclusively to the management of community associations, our homeowners association and condominium managers understand the unique needs of each community. We are proud of both our growth and reputation for offering an unparalleled level of professional service. Our services equip and empower board members to effectively lead their associations.

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locally owned, regionally focused, nationally acredited
locally owned, regionally focused, nationally acredited

“...By aligning our association with Wise Property Solutions we are allowing a professional organization with proper training, systems and knowledge to streamline our efforts...saving us time and money...giving more prompt service to homeowners,”

Larry W.
President
Homeowners Association
     
FROM OUR BLOG

Reserve Studies Complete the Financial Picture for HOAs


Because your community association Board has a fiduciary duty to manage funds and property, reserve studies are very important.  The information supplements your annual operating budget to balance short- and long-term needs and costs. A good reserve study provides a complete financial picture and maintenance plan for the association.

 

Reserve Study Includes Three Areas

A reserve study is a budget-planning tool that estimates the current repair/replacement costs of major common elements. It also establishes anticipated timeframes with a funding plan. Studies should include these three areas:

 

  1. Identify the association’s repair/replacement obligations
  2. Determine cost and timing of repair/replacements
  3. Establish a funding plan for repair/replacements

 

Physical Repair/Replacement

Good reserve studies include a list of components, physical condition and costs. Some also include alternatives in addition to replacement and repair options for some common elements. This is helpful when the component is dated, no longer available or a more energy efficient model exists. Your reserve study should include this information for repair/replacement:

 

  1. Identify major common element components
  2. Assess existing condition and  remaining life of each component
  3. Identify anticipated repairs for each item
  4. Estimate current replacement cost for each component
  5. Assess potential for alternatives
  6. Establish timeframe for repairs/replacement

 

 

Planning Your HOA Reserves

The information from your reserve study goes beyond estimating reserve contributions. It also helps your Board develop a replacement plan that you can use to negotiate with vendors. However, it’s important to recognize that replacement costs vary over time, so actual replacement costs are usually different from the “current” cost outlined in your reserve study. In addition, actual costs are influenced by current material prices, weather, location and the economy. Keeping your reserve study updated with current costs provides a better budget-planning tool for your HOA Board.

 

Performing a reserve study offers many benefits for community associations. It’s a maintenance plan, a budget planning tool, and enhances the resale value. It’s one of the cornerstones that support successful communities.

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Wise Property Solutions is a property management company serving East Tennessee with offices in Knoxville, TN and the Tri-Cities, TN-VA. Specializing in Condominium Association Management, Home Owners Association Management, HOA Management and Gated Community Association Management.

 

 

 

Tri-Cities, TN-VA: 423-926-7373

 

 

 

Knoxville, TN: 865-643-8989

 



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