In recent months, Florida has seen an influx of new reserve study companies emerging to meet the growing demand following the implementation of stricter condominium and homeowners association laws. As part of the 2022 legislation, Florida law now requires condo associations to conduct reserve studies every 10 years and provide updated reserve funding plans for major building repairs and replacements. While this has created a more thorough approach to managing property maintenance and avoiding sudden, costly assessments for residents, it’s also led to the rapid expansion of reserve study businesses—some with little to no experience in the field.
These new companies, many of which have little background in reserve studies or the technical aspects of property management, are rushing to take advantage of the legislative changes. Unfortunately, this has raised concerns among property managers, association boards, and homeowners about the quality and reliability of the reports being produced. While some firms may offer low fees or quick turnaround times, they may lack the technical expertise to accurately assess long-term capital needs or properly evaluate building components.
Reserve studies are critical documents for ensuring that communities have enough funds to cover expensive repairs like roof replacements, parking lot resurfacing, or elevator upgrades. A poorly conducted study can lead to underestimated costs, resulting in shortfalls that could burden residents with unexpected special assessments.
As the market for reserve studies continues to grow, it’s important for Florida’s condo and HOA boards to do their due diligence when selecting a provider. Asking for certifications, checking industry experience, and looking for a firm with a strong track record in the field can help ensure that communities are adequately prepared for future maintenance and avoid costly mistakes down the road.
In short, while Florida’s new laws are creating a much-needed focus on property upkeep, the boom in reserve study companies is a double-edged sword. Associations must be cautious about choosing a provider with the necessary experience and expertise to deliver accurate, comprehensive reserve studies that will truly benefit their community in the long run.
Another concern for associations turning to these new, inexperienced companies is the potential for instability in the marketplace. Many of these emerging businesses are small startups that may not have the longevity or financial backing to weather market fluctuations. When an association decides to update their reserve study a few years down the road—something that’s crucial for maintaining accurate assessments and funding plans—there’s a real risk that the company that initially provided the study may no longer be in business. This could leave associations scrambling for a new provider at the last minute, potentially causing gaps in continuity or forcing them to redo the study from scratch. With so much at stake in terms of accurate financial planning and long-term maintenance, relying on a company with an uncertain future could end up causing more problems than it solves.
These new companies, many of which have little background in reserve studies or the technical aspects of property management, are rushing to take advantage of the legislative changes. Unfortunately, this has raised concerns among property managers, association boards, and homeowners about the quality and reliability of the reports being produced. While some firms may offer low fees or quick turnaround times, they may lack the technical expertise to accurately assess long-term capital needs or properly evaluate building components.
Reserve studies are critical documents for ensuring that communities have enough funds to cover expensive repairs like roof replacements, parking lot resurfacing, or elevator upgrades. A poorly conducted study can lead to underestimated costs, resulting in shortfalls that could burden residents with unexpected special assessments.
As the market for reserve studies continues to grow, it’s important for Florida’s condo and HOA boards to do their due diligence when selecting a provider. Asking for certifications, checking industry experience, and looking for a firm with a strong track record in the field can help ensure that communities are adequately prepared for future maintenance and avoid costly mistakes down the road.
In short, while Florida’s new laws are creating a much-needed focus on property upkeep, the boom in reserve study companies is a double-edged sword. Associations must be cautious about choosing a provider with the necessary experience and expertise to deliver accurate, comprehensive reserve studies that will truly benefit their community in the long run.
Another concern for associations turning to these new, inexperienced companies is the potential for instability in the marketplace. Many of these emerging businesses are small startups that may not have the longevity or financial backing to weather market fluctuations. When an association decides to update their reserve study a few years down the road—something that’s crucial for maintaining accurate assessments and funding plans—there’s a real risk that the company that initially provided the study may no longer be in business. This could leave associations scrambling for a new provider at the last minute, potentially causing gaps in continuity or forcing them to redo the study from scratch. With so much at stake in terms of accurate financial planning and long-term maintenance, relying on a company with an uncertain future could end up causing more problems than it solves.
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