Question 1

What is meant by reserve fund?

Accepted Answer

A Reserve fund in real estate is the amount of money that you set aside for future building maintenance expenses.

Question 2

How often are reserve fund studies done?

Accepted Answer

There is no standard guideline for reserve fund study timeframe. Still, it is recommended that the Reserve Fund Studies should be conducted every 3 to 5 years.

Question 3

What is the purpose of a reserve fund study?

Accepted Answer

Reserve Fund study determines the amount of money required to pay for potential building maintenance issues in the future. The number that you get after the study is what you need to aim at to ensure that all future repairs can be paid for, without any additional pressure on the owner.

Question 4

How much do reserve fund studies cost?

Accepted Answer

The cost for the reserve fund study depends on the size of the property and the number of assets in a property. You can get in touch with Land Sterling to get a free quote for your specific Reserve Fund Study project.