Condo Reserve Study Sample: Requirements, Template and How to Read One
A condo reserve study sample with a worked component table, percent funded math and a 5-year funding plan, plus state reserve study requirements and a template for boards.
Quick answer
A condo reserve study has two parts. The physical analysis lists each common component with its useful life, remaining life and replacement cost. The financial analysis compares the reserve balance with the fully funded balance to get percent funded, and sets a funding plan for the next 30 years. Many states now require one, often every 3 to 5 years, and Florida requires a structural integrity reserve study for buildings three stories or higher.
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What a Condo Reserve Study Includes
A reserve study is a plan for paying for the big things a building replaces only every few decades: the roof, the elevator, the paving, the boiler, the paint. Every study, whoever prepares it, comes in two parts.
The physical analysis is the component inventory. For each common component it lists:
- what the component is and how much of it there is
- its condition, based on a site visit or the last one
- its useful life (how long it lasts when new)
- its remaining useful life (how many years until it must be replaced)
- its current replacement cost
The financial analysis turns that list into money. It shows the current reserve balance, the fully funded balance (what the reserve should hold today given how worn each component is), the percent funded, and a funding plan: how much to put in each year for the next 30 years so the money is there when each component wears out.
This page shows a worked sample of both parts and what the law requires. If you are a buyer checking someone else’s study, our reserve study red flags guide covers what to look for. If you are a board, the Board Packet Kit has a one-page reserve fund summary for telling owners what the study means.
Sample Component Inventory
This is a made-up six-item sample to show how the numbers work. A real study lists every major common component, and every cost comes from the preparer’s own estimates or bids.
| Component | Useful life | Remaining life | Replacement cost | Fully funded balance |
|---|---|---|---|---|
| Roof membrane | 25 years | 8 years | $300,000 | $204,000 |
| Exterior paint and sealants | 10 years | 3 years | $90,000 | $63,000 |
| Elevator modernization | 25 years | 12 years | $250,000 | $130,000 |
| Parking lot overlay | 20 years | 5 years | $60,000 | $45,000 |
| Boiler | 20 years | 10 years | $80,000 | $40,000 |
| Lobby and hallway finishes | 15 years | 6 years | $45,000 | $27,000 |
| Total | $825,000 | $509,000 |
How the last column is worked out. The fully funded balance for a component is its replacement cost times the share of its life already used up:
Fully funded balance = replacement cost × (useful life − remaining life) ÷ useful life
For the roof: $300,000 × (25 − 8) ÷ 25 = $204,000. The roof is 17 years into a 25-year life, so a fully funded reserve would already hold 68 percent of its cost.
Sample Percent Funded
Say this association has $280,000 in reserves today.
Percent funded = reserve balance ÷ fully funded balance = $280,000 ÷ $509,000 = about 55%
Reserve preparers commonly call 70 percent or more strong, 30 to 69 percent fair, and under 30 percent weak. These are industry rules of thumb, not legal limits. At 55 percent this sample building is fair: it can pay for the work coming soon, but a surprise could force an assessment.
Sample 5-Year Funding Plan
The funding plan shows each year’s starting balance, contribution, planned spending and ending balance. Here is the sample building with a $60,000 yearly contribution.
| Year | Starting balance | Contribution | Planned spending | Ending balance |
|---|---|---|---|---|
| 1 | $280,000 | $60,000 | $0 | $340,000 |
| 2 | $340,000 | $60,000 | $0 | $400,000 |
| 3 | $400,000 | $60,000 | $90,000 (paint and sealants) | $370,000 |
| 4 | $370,000 | $60,000 | $0 | $430,000 |
| 5 | $430,000 | $60,000 | $60,000 (parking overlay) | $430,000 |
To keep the sample simple it leaves out inflation and interest. A real plan adds both, runs 30 years, and must still show a positive balance in year 8 when the $300,000 roof is due. If any year goes negative, the plan is telling the board it needs a bigger contribution, a special assessment, or a loan.
Condo Reserve Study Requirements by State
Reserve study rules are set by each state, and they have changed a lot since 2021. Here is what our state guides say for some of the biggest condo states. Each link has the statute and the details.
| State | Is a reserve study required? | How often |
|---|---|---|
| California | Yes, when major component replacement value is at least half the gross budget (Civil Code 5550) | Visual inspection at least every 3 years, reviewed every year |
| Florida | Yes, a structural integrity reserve study (SIRS) for buildings three habitable stories or higher | At least every 10 years |
| Washington | Yes for most associations (RCW 64.90.545) | Updated every year, site visit at least every third year |
| Virginia | Yes, unless the condo instruments say otherwise (§ 55.1-1965) | At least every 5 years, reviewed every year |
| Nevada | Yes (NRS 116.31152) | At least every 5 years, reviewed every year |
| New Jersey | Yes, with a 30-year funding plan (N.J.S.A. 45:22A-44.2) | Reviewed at least every 5 years |
| Maryland | Yes, an independent study (sec. 11-109.4) | Updated at least every 5 years |
| Hawaii | Yes, budgets must be based on one (HRS 514B-148) | Independent review at least every 3 years if not prepared by one |
| Colorado | No for most existing associations, but a written reserve study policy is required | Set by the policy |
| Texas | No | Not set |
| Illinois | No, but budgets must include reasonable reserves | Not set |
| Arizona | No | Not set |
Some states also say who can prepare it. New Jersey requires a credentialed reserve specialist or a New Jersey licensed engineer or architect. Nevada generally requires a preparer with a state permit. Maryland requires an independent study. Check your own state’s rule before you hire anyone.
Reserve Study Template: How a Board Gets One Done
Most boards hire a reserve study provider rather than writing the study themselves. Here is the process, step by step.
- Check your state’s rule and your governing documents. Find out how often a study is required, who may prepare it, and whether it must include a site visit.
- Gather what the preparer will ask for. Past reserve studies, the last three years of budgets and financial statements, the current reserve balance, records of big projects done since the last study, recent bids, and any engineering or inspection reports.
- Choose the type of study. The Community Associations Institute’s national reserve study standards describe three levels: a full study with a site visit and a new component inventory, an update with a site visit, and an update without one. A first study, or one after big changes, should be a full study.
- Get proposals from credentialed providers. Look for the Reserve Specialist (RS) designation or an engineer’s license, and ask whether they include a 30-year funding plan.
- Review the draft before it is final. Check that every major component is listed, that remaining lives match what the board knows, and that costs reflect recent bids.
- Adopt a funding plan at an open board meeting. Put it on the board meeting agenda as a vote, and record the decision in the minutes.
- Tell owners. Send a short summary: the balance, percent funded, the projects coming in the next five years, and what it means for dues. The Board Packet Kit’s reserve fund summary is a one-page form for this.
- Put the next update on the calendar. Most boards review the study each year at budget time.
Common Mistakes Boards Make
- Leaving components out. Plumbing risers, garage waterproofing and facade sealants are often missing, and they are expensive.
- Using old costs. A study that reuses prices from several years ago will understate what the work costs now.
- Adopting the study but not the plan. The budget has to actually include the recommended contribution.
- Skipping the site visit for too long. An update without a site visit cannot catch a component that wore out early.
- Not telling owners. Owners who never see the study are more likely to fight the dues increase or assessment that follows.
Frequently Asked Questions
What does a condo reserve study sample include?
A component inventory with useful life, remaining life and replacement cost for each item; the reserve balance, fully funded balance and percent funded; and a funding plan with yearly contributions and spending, usually for 30 years. The sample above shows a short version of each part.
How is percent funded calculated?
Divide the current reserve balance by the fully funded balance. The fully funded balance for each component is its replacement cost times the share of its useful life already used. In the sample above, $280,000 divided by $509,000 is about 55 percent.
Can a condo board do its own reserve study?
Sometimes. Some states require an independent or credentialed preparer, such as New Jersey, Nevada and Maryland, and Hawaii requires a study not prepared by an independent preparer to be reviewed by one every three years. Where the law allows it, a self-prepared study is still harder to defend to owners and lenders. Check your state's rule first.
Is there a free condo reserve study template?
You can copy the sample tables on this page as a starting point for your component list and funding plan. For telling owners what the study says, the Board Packet Kit includes a one-page reserve fund summary. A template does not replace a study by a qualified preparer where your state requires one.
How often should a condo reserve study be updated?
Follow your state's rule first. California requires a visual inspection at least every three years, Virginia and Nevada a study at least every five years, and Washington an update every year. Where there is no rule, many boards review the study every year at budget time and get a new site visit every three to five years.
Important: This article is for educational purposes only and is not legal, financial or engineering advice. The sample numbers are made up to show how the math works and are not estimates for any building. Reserve study laws change and vary by state. Always check your governing documents and your state’s current statute, and work with a qualified reserve study professional and the association’s attorney.
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Who writes CondoWorkbook
CondoWorkbook guides are written and published by S-Block Technologies. Each guide is based on how condo declarations, CC&Rs, bylaws and master insurance policies usually split repairs, and on the state laws it names. We update a guide when a law changes or a reader tells us something is wrong. We are not lawyers, and no lawyer reviews these guides, so always check your own documents.
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