For too long, community association trustees have been dropped into the deep end of a business model they are wholly unprepared for. They’ve volunteered to run a multi-million dollar business, for free and with minimal training.
The very definition of a community association and the duty of every board member is to “provide a communal basis for preserving, maintaining, and enhancing homes and property” (p4). But it isn’t obvious how to get from here to there.
The usual recommendation is that the board commission a reserve study. But the static reserve study falls short. It is not enough on its own to complete the job to be done.
In fact, based on our analysis of over 20,000 reserve studies, one in every five communities is projected to go cash-flow negative in the next 5 years, despite all of them having a reserve study!
It’s time to stop overburdening dedicated volunteers—the teachers, nurses, and mechanics with the responsibility of understanding Wall Street-level investment strategies. Today’s boards deserve a platform that will help them plan for their community’s future without needing a crystal ball or years of experience as a Fortune-500 CEO.
SmartProperty’s Living Reserve Study® is that solution.