We've said it before, we're saying it today, and we will undoubtedly say it many more times in the future: Reserve funds, and most (if not all) things related to them, are tricky. And time and again we find ourselves turning to reserve expert Robert Nordlund, PE RS, CEO of Association Reserves, and his wealth of knowledge about reserves, as well as his passion for the accounting side of community association management.
This year at CAMfire, Nordlund spoke about the six common challenges, or "detours," a CAM manager can expect to face while making decisions about their annual reserve study.
In the session, Nordlund used the analogy of a road map to explain the reserve study process. He demonstrated how certain choices and challenges can take managers on time-consuming "detours" that can pull them away from their primary focus come reserve study time.
Due to a series of freak technical difficulties, Nordlund's class got off to a late start (technology is so great until it decides to misbehave!). But, being the consummate professional that he is, he made sure his students got the full benefit of the content by recording the class for them. And when we saw it, we just knew we had to share it with everyone, because it's so useful! Robert kindly agreed, and now here it is for you, too!
During this class, he covers the variety of "detours" that a manager can expect to face on their reserve study road map, and how best to handle them, and avoid them.
These are the most common reserve study road map detours that Nordlund identifies:
It’s not in the Reserve Study! what to do
What is it (Maintenance, Repair, or Replace)?
But the cost doesn’t match!
Do we need to do it now?
Whoops… we didn’t make all our contributions!
What if we’ve ignored it for years…?
Throughout the webinar, Nordlund shares real life examples (with pictures!) of communities who have fallen into these detours, and the consequences they suffered.
Watch the video above to see what each of these detours entails, how they can impact your annual reserve study decisions, and how to avoid them altogether!