CAI-NJ Feb. 2019

3. Return – Investments should be working on your behalf and gain- ing interest for your association. 8. No current reserve study or not funding it properly Unless state law requires it more fre- quently, it’s recommended that reserve studies be performed every 3-5 years and include a physical inspection. These studies are essential tools to properly plan and save for future com- ponent replacements. Some questions you should ask yourself in the study: • Does the current reserve study include all capital items? • Have some of the items on the reserve study been replaced? • Have material costs changed since the last study? 7. Choosing to defer maintenance or just use band-aids on larger projects An annual review of the reserve study will help you stay aware of which repairs are coming due and it’s important to make the repairs as need- ed. Putting off repairs or trying to put a band-aid on major issues can lead to throwing away money on repairs when replacement would have fixed the problem long-term. Also, if you’re filing insurance claims for each of these smaller issues, it can lead to increased premiums. 6. Not relying on professionals It can be tempting to try to save money on repairs. Many well-mean- ing board members try to do just that by playing handyman or bringing in a friend who knows something about that. In the end though, the associa-

Tavarious Butts, VP, Relationship Manager 703-284-0561 • Tavarious.Butts@BBandT.com

Branch Banking and Trust Company is a Member FDIC and an Equal Housing Lender. © 2018, Branch Banking and Trust Company. All rights reserved.

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