THE PROPERTY
A sprawling resort community with 6,000 free-standing homes (when we did this study) for which owners are responsible, plus three golf courses, three clubhouses, two swimming pools, miles of roadways and common utilities, totaling more than 3,000 assets managed by the HOA.
THE CHALLENGE
An estimated useful life (EUL) had to be calculated for each of the community’s 3,000 assets. While some reserve studies simply subtract the current age of the asset from its life expectancy (calculated by the manufacturer), our calculation also considers the asset’s current condition and its current use. For example, the exercise equipment in this active adult community is used constantly – far more than the equipment in most public health clubs. That intense use will significantly reduce the EUL and accelerate the community’s capital repair and replacement costs.
THE TAKEAWAYS
Reserve studies are not ‘fill-in-the-blank’ exercises. Three identical components in three different communities may have three different EULs. A Criterium Engineers reserve study will capture those differences.