Tag Archives: Reserve Planning

Take a Proactive Stand on Reserve Management Plann…

A Reserve Management Plan or Study, commonly called a RMP or RS, is a physical and financial analysis of assets within a common interest (CID) or shared ownership development; such as a timeshare resort, a fractional property, a condominium complex or condo hotel. Depending on the type of association that governs the property and the association’s declaration or by-laws, reserve analysis and funding requirements vary. Requirements for the establishment of association reserve accounts also vary from state to state, so it is a good idea to check with your state about the statutes.
The Reserve Plan or Study is simply a tool used by associations and management companies to determine what will be needed to maintain the property. Reserve accounts are established and maintained to hold funds for the long-term ordeferred maintenance and replacement of any assets that the associations is responsible for.

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