Tuesday June 30, 2026
Reserve studies are one of the most powerful tools available to HOA boards. Yet too often, they are treated as a document to review once a year instead of a guide for ongoing decision-making.In a recent board education webinar, FirstService Residential brought together industry leaders to explore how boards can use reserve studies and capital planning more effectively. The session, Planning for the future: Reserve studies and capital projects, focused on practical steps boards can take to plan ahead, manage risk, and build long-term confidence within their communities.
As Mathew Eberius, regional VP, strategy & business ops, explained, this topic sits “at the intersection of financial stewardship, operational planning, and community trust.”
Reserve studies are more than a report
One of the most important themes of the discussion was a shift in perspective.
"Reserve studies are not just reports that are sitting on a shelf. When well used, they become a roadmap for protecting the community’s assets and making thoughtful decisions before those decisions become urgent."Kristina Allen, senior vice president of property operations, echoed that point and encouraged boards to move beyond a checklist mindset.
Mathew Eberius, regional VP, strategy & business ops
"When boards see it simply as an exercise, the valuable data and information isn’t always being used in a way that benefits the community. It’s really about how you utilize that information to plan strategically."For boards, that means regularly revisiting the study, aligning it with current conditions, and using it to guide both short-term decisions and long-term goals.
Kristina Allen, senior vice president of property operations
Understanding what a reserve study is, and what it is not
For many board members, especially those new to their role, reserve studies can feel complex or overwhelming."A reserve study is nothing more than a capital replacement plan. Every component in your community has a useful life, and you should be setting money aside over time for its replacement."That includes more than just major systems. Landscaping, amenities, and shared features may also be included based on their expected lifespan.
Rodney Riepenhoff, vice president of facilities management, high-rise
Misconceptions that can lead to bigger problems
A few common misconceptions came up during the discussion, many of which can create challenges for boards if they are not addressed early.One of the most common is how reserve funds are viewed.
Rodney adds,
"Boards tend to think the reserve fund is a rainy-day fund. It’s not. It’s designed for money to come in and go out during the replacement cycle."Another misconception is assuming the numbers remain fixed.
Kristina noted that contribution levels depend on what has actually happened in prior years.
"If projects were deferred or accelerated, or if something failed earlier than expected, that changes what you need to plan for."Accuracy also plays a major role. Lee Newman, senior vice president of high-rise, shared that many reserve studies may miss key details if they are not carefully reviewed.
"We’ve seen equipment lumped together or components missing entirely. It’s not a perfect science, but a well-developed study can get you very close to where you need to be."
Lee Newman, senior vice president of high-rise
Moving from insight to action
Receiving a reserve study is only the first step. The real value comes from what happens next.Rodney encouraged boards to take a structured approach.
"Work with your management company and professionals to really break it down and understand it. From there, look at your three- to five-year window and what’s coming up."Boards should take time to:
- Confirm all components are included and accurately listed
- Validate replacement costs with trusted experts or vendors
- Review funding projections over time, not just the current year
- Align findings with upcoming budget discussions
"Some of the best reserve studies are based on the information provided by the community."
Prioritizing projects when everything feels urgent
Many communities face situations where multiple projects need attention at once. In those cases, prioritization becomes critical.Lee says:
"One question you always have to ask is what poses the greatest threat. Safety, health, property values, operations. That gives you a framework."He also recommended going beyond the study itself by conducting regular condition assessments. These can help boards determine what can be deferred and what needs immediate attention.
Funding strategies and the cost of delay
Funding continues to be one of the most challenging aspects of reserve planning.Rodney emphasized the importance of focusing on long-term cash flow. Rather than relying on a single funding percentage, boards should have enough resources to cover anticipated expenses without running short.
Lee shared a helpful benchmark from industry research. Communities that are 70% funded or higher typically face a very low risk of needing a special assessment, while those below 20% may face significantly higher risk.
Delaying projects can have serious consequences.
Rodney adds,
"It’s like not replacing your tires when they’re worn out. Eventually, you’re stuck dealing with a much bigger problem."Kristina added that deferring repairs can lead to declining amenities, frustrated residents, and limited financial options. In more severe cases, it can put the financial stability of the association at risk.
Why communication is just as important as planning
Even the most well-developed plan can fall short without clear communication."Silence creates anxiety."Mathew shared, highlighting the importance of keeping residents informed.
Lee advised boards to focus on explaining the “why” behind decisions.
"If residents understand the risks of not doing a project and the benefits of doing it, they’re much more likely to support it."Some of the most effective approaches include:
- Hosting town halls or workshop-style discussions
- Walking through the reserve study in an open session
- Sharing updates before, during, and after major projects
- Providing multiple opportunities for residents to ask questions
"When you walk through the components together, it starts to click."
A simple step boards can take today
When asked for one action boards should take this year, the panel offered a consistent answer.Lee adds:
"Make sure your reserve study is accurate. Work with your management team and your reserve specialist, and make it a collaborative effort."Rodney recommended bringing in additional expertise when needed, particularly for large or complex properties. Kristina emphasized the importance of documenting completed and deferred projects so future updates reflect reality.
Continue the conversation
Reserve studies and capital planning are ongoing processes, not one-time events. Staying informed and connected can make a meaningful difference in how confidently your board approaches these decisions.If you were unable to attend the webinar, you can watch the full recording here.
You can also continue building your expertise by joining an upcoming board education webinars. To view upcoming topics, register for future sessions, or review past recordings, click here.
Contact us today to learn more.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.