Ready To Scale
A Reserve Study
Business?
RSC trains Architectural and Engineering firms throughout the U.S. to become dominant service leaders in the ever-growing sector of residential community associations.
Why RSC
Community Associations have a fiduciary responsibility to their residents to maintain their properties. Communities are required to reserve funds for future capital improvements no matter how the economy is performing.
- Buffer against recessions
- Create a new revenue stream
- Provide your expertise to an underserved clientele
- Reserve Studies are a complimentary line of business that is often more profitable and predictable than traditional design services.
Population in Community Associations in Millions
Number of Community Associations
Value of Homes in Community Associations in Trillions of Dollars
%
Population Residing in Community Associations
Opportunity
A Reserve Study is a budgetary and cash flow management tool, and many preparers do not have expertise in the varied aspects of building types, systems, and site related components. A/E firms, such as yours, may have subject matter experts who can be an important source of knowledge for Reserve Study preparation. Examples of beneficial expertise include civil, structural, HVAC, plumbing, electrical, and building envelope systems.
Growing Demand for Reserve Studies
One of the primary responsibilities of the board of directors of a community association is to protect, maintain, and enhance the assets of the association. To accomplish this objective, associations must develop multi-year plans to help them anticipate and responsibly prepare for ongoing preventive maintenance, periodic structural inspections, as well as for the timely repair and replacement of common area components such as roofs, roads, mechanical equipment, and other portions of the community’s common elements.
What are Reserve Studies?
A Reserve Study is made up of two parts, the physical analysis, and the financial analysis.
The Physical Analysis
Includes the component inventory, condition assessment, and life and valuation estimates as defined within the standards. The component inventory should be relatively stable from year to year, while the condition assessment and life and valuation estimates change from year to year. Regular updates are necessary as the physical assets of the association are in a continual state of change.
- Component Inventory
- Condition Assessment
- Life & Valuation Estimates
The Financial Analysis
Is an analysis of the client’s current reserve fund status (measured in cash or as percent funded) and a recommendation for a multi-year reserve funding plan).
- Fund Status
- Funding Plan
Territories
The size and geographic boundaries of territories are negotiated with our clients and drawn to match their goals and capabilities. The minimum population is usually 500,000 – the maximum is typically 1.5 million. But there are no “standard” size requirements. We want territories to be large enough to support a successful business but not so large that they can’t be served effectively. We won’t approve another client within an existing client’s territory.
WEST
DallasHoustonSan AntonioDenverPhoenixSeattlePortlandLas VegasSan FranciscoLos Angeles
CENTRAL
ClevelandColombusDetroitChicagoMilwaukeeIndianapolisMinn/St.PaulNashvilleSt.LouisNew Orleans
EAST
PhiladelphiaBostonNew YorkWashington DCNorfolkCharlotteAtlantaOrlandoTampa/Fort MyersMiami
FAQs
Here are FAQs that we often hear and the corresponding answers to those questions
How do you decide the size of my territory?
Can I provide services to community associations in addition to Reserve Study?
Yes! Community associations appreciate working with firms that can be their “go to” professional for services in addition to Reserve Studies. The ability to offer the following services will elevate you above the competition:
- Transition Studies
- Site Pavement Evaluations
- Structural Evaluations
- Roofing Evaluations
- Water Infiltration Evaluations
- Drawings and specifications for property repairs
- Assistance with permitting
- Assistance with contractor bid solicitation
- Construction Administration
What does the training fee cover?
With the RSC base consulting (not franchise) fee our clients receive the following:
- Working File Templates for the preparation of Reserve Studies
- One week of training at our client’s office or location to be chosen by our client. This includes input on how to advertise and market.
- Up to 40 additional hours of shadowing by our client at community properties
- All project revenue remains with our clients. No royalties to RSC on client produced work.
How much money can I expect to make?
- You are in control of the total revenue that this new line of service will generate in your territory. Revenue will be a function of the relationships you develop, the staff you commit to the service, and the quality of your work. RSC will show you how this service niche can be more profitable than typical A/E projects.
- 29% of U.S. population live in community associations
- $26.6 billion in assessment dollars contributed to association reserve funds for the repair, replacement, and enhancement of common property, e.g., replacing roofs, resurfacing streets, repairing swimming pools and elevators, meeting new environmental standards, and implementing new energy-saving features.
About RSC
RSC was created due to the growing need for experienced A/E professionals to perform reserve studies for residential community associations. John M. Hershey is a Licensed Architect, Reserve Specialist, and President of Reserve Study Consulting, Inc. John has personally performed 100s of Reserve Studies, Transition Studies, and Property Condition Assessments throughout the U. S. and has trained others how to do so accurately and efficiently.
John has been published and asked to speak at the local and national level many times on various building related topics, such as The Importance of Reserve Studies and Diagnosing Water Leaks.
Community Association Research.
