BUYERS GUIDE: HOW OFTEN SHOULD WE HAVE A RESERVRE STUDY COMPLETED?
Video transcription: So how often should you have a reserve study completed; ideally annually. You can do an annual update - just a financial update to the cost for inflation interest rates and cost of components. You can update those on an annual basis to make sure that you're staying on track and you know how much to allocate to reserve account on an annual basis. Now every third year, to comply with Washington State law, you need to do a site inspection. Someone needs to actually come out, look at the components [and] make sure things are aging and deteriorating at a pace that was expected in the beginning. Oftentimes that's not the case; you need to update that [reserve study]; this is why updates are so beneficial. Every third year, that means you have a few years there were things can change substantially and you can actually go in and change the reserve study and that's what we would do.
So our recommendations, to comply with Washington State Laws, is to update annually just financially and every third year do a site inspection where we actually come out look at your components make sure they're aging and deteriorating in line with our expectations and we're able to update the study to reflect accurately, real-life conditions in the community. You know exactly how much you can set aside in your reserve account to stay on track so when something does come due you have the amount in the reserve account to cover the expenses, whether that is for roofing, siding, painting, windows whatever the case is. We want to make sure that when those expenses come up you have the money set aside and you're adequately prepared for that. That's what's so great about updates; updates will make sure you can stay on track so even if you start well you don't update you can actually run into trouble in a fairly short period of time without updating the information to the cost, to inflation, and to the financials of the community. All these things change as board members change as time goes on and as issues come up with the building that you may not have known and we wouldn't have seen [years] earlier on when we did a site inspection.
Again you can go to our website https://www.rdanorthwest.com there's has lots of information there regarding components, regarding component lives, regarding what we recommend for different types of components. We look forward to hearing from you. Thank you so much.