Understanding the process of Reserve Management Planning

What is a Reserve Management Plan?

The Reserve Management Plan (RMP) or Reserve Study (RS) is a document that is created for the management company and association of any shared ownership property, such as; resorts, timeshares, fractional properties, condominiums and condo hotels.  The RMP establishes a schedule by which funding for maintenance, refurbishment, repair and replacement of common area components are achieved and provides assurance that funding to maintain the property will be available when needed.

Based on the funding needs that are documented in a good RMP or RS, reserve accounts are established and maintained to hold the funds for replacement of assets and any long-term ordeferred maintenance that the association is responsible for.

Read the rest of this article in the Sept/Oct issue of Perspective Magazine North American edition.

If you enjoyed this post, please leave a comment or subscribe to the feed and get future articles delivered to your feed reader.