What is a Reserve Study?
A Reserve Study is a document created to estimate/forecast future common area expenses of a condominium association. It is a management tool for use by the Board of Directors of the Condominium Association to plan for the maintenance and replacement of common areas. It is required in Tennessee by TCA § 66-27-403 (g)(2).
"Reserve study" means an analysis, prepared in conformity with the latest edition of the Reserve Study Standards published by the Community Associations Institute, or similar standards by another nationally recognized organization, by a reserve specialist who is credentialed through the Community Associations Institute or a similarly recognized organization, or a licensed engineer or architect, performed or updated within the last five {S)years, of the remaining useful life and the estimated cost to replace each separate system and component of the common elements, the purpose of which is to inform association members and the association's board of the amount that should be maintained from year to year in a fully funded repair and replacement reserve to minimize the need for special assessments; TCA § 66-27-203(1)(21).
Who needs a Reserve Study?
If your TN Condominium Board of Directors oversees common areas whose maintenance or replacement exceeds $10,000 and has not had a Reserve Study completed since 2020, then it is required to be done by January 1, 2025.
Homeowner and Townhome Associations also benefit from having a current reserve study. A reserve study is a powerful management tool that helps the board ensure that the association is property funded.
How do I get started?
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Request Proposal
Complete the form on our website by clicking the button in the section below.
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Speak with our Team
Await our prompt response within 2 business days and we will take it from there.
Frequently Asked Questions
How long will it be before we receive our Completed Reserve Study?
The report is quite extensive and requires the compilation of a great deal of information. We therefore tell our clients to expect the report in approximately sixty (60) days.
How will this benefit the individual condominium owners?
A completed Reserve Study helps to maintain property values, reduce the likelihood of large unforeseen assessments, establishes a fund that, as it grows, will be used to pay the cost of maintaining common areas, to name a few.
What does a Reserve Study Cover?
A Reserve Study is a document created to estimate/forecast future common area expenses of a condominium association. It is a management tool for use by the Board of Directors of the Condominium Association to plan for the maintenance and replacement of common areas. It is required in Tennessee by TCA § 66-27-403 (g)(2).
How often does a Reserve Study need to be conducted?
Depending on the age of the property, every three to five years.
Does the HOA Board need to provide any additional information to help with the Reserve Study?
Yes, we will need a copy of the Covenants, Restrictions and Bylaws.
Does Reserve Studies Tennessee, LLC keep Client information confidential?
Yes. We operate under strict ethical and professional standards and maintain strict confidentiality with regard to our clients' information.