Reserve studies and their relationship to capital improvements and preventive maintenance were discussed at length in our guide to capital improvements. To refresh, a reserve study is a report about the condition and likely useful life of all the major components in your property. The report also contains a recommended schedule for repairs and replacements capital improvements that will be needed over a short or long period of time (e.g. 3, 5 or 10 years), estimated costs for these projects, and a recommended plan to fund each project. By having this information readily available, a board is enabled to allocate money every year toward the cost of future capital improvement work, or to perform unexpected emergency work.