HOA reserve planning is one of the biggest challenges boards face. Too often, associations have failed to adequately plan, and in many cases, the board isn’t even aware that there is a need to have a separate savings account.

If the Homeowners Association has a property manager, then that manager or management company should explain the importance of funding a reserve account. In my opinion, there is no excuse for a managed property to not have a plan for building reserves.

I talk about the importance of association managers educating board members in another post, but this is an area of fiduciary responsibility of supreme importance.

The video below, by http://www.reservestudy.com, may not be the most exciting thing you’ll watch today, but it does a good job explaining the process of reserve planning.

If you’re an HOA board member in the Middle Tennessee area and you have questions about reserve planning call us today at (615) 255-2703.

Also, be sure to check out the 5 Keys to HOA Management!