Modern Reserve Studies: Why Many Communities Are Still Getting Them Wrong

Reserve studies are a critical part of HOA financial planning, and most associations are required by law to complete them on a regular basis. Despite this, many communities treat them as a checkbox—something to complete, file away, and revisit years later. When that happens, the study loses its value and the community loses one of its most important planning tools.

Reserve studies often fail for a few key reasons. Some are outdated, completed five or more years ago with numbers that no longer reflect current costs. Others are inaccurate, missing key components or using unrealistic life expectancy estimates. In some cases, the studies are simply ignored. Boards may have the report on hand, but it’s not part of the budget process or vendor planning, and it isn’t discussed with homeowners.

When a reserve study becomes disconnected from day-to-day decision-making, the community is exposed to real financial risk. This can lead to surprise special assessments, deferred maintenance, homeowner frustration, and inconsistent dues increases. With rising inflation, labor costs, and material prices, these risks are only growing.

At Clearcrest, we help boards take a modern approach. We store the reserve study in a secure portal where it can be accessed alongside visual dashboards that track actual spending against projections. When major projects like roofing or asphalt repairs arise, we flag them to evaluate whether the study needs to be updated earlier than planned. We also compare vendor bids to the estimates in the study to make sure the numbers are realistic.

Our goal is to make the reserve study a living document. We work with boards to connect the study to long-term dues planning so that they can avoid the pattern of flat assessments followed by financial crises. If your HOA hasn’t referenced its reserve study in the past six months—or no one is sure where it’s stored—it’s likely time for a fresh look.

Reserve planning doesn’t have to be a guessing game. Clearcrest gives boards the tools and structure to plan with confidence and protect their communities from avoidable surprises. A strong financial future starts with better use of the resources you already have.