Reserve Fund Study Accuracy

The article discusses the accuracy of Reserve Fund Studies (RFS) in condominiums and addresses common questions about the estimates used in the studies. The RFS calculates future Major Repair and Replacement (MRR) costs for common elements over the next 30 years, involving various estimates such as the nature and extent of MRR, life expectancies of common elements, current condition of common elements, timing of MRR, current and future costs of MRR, inflation rates, future investment income, and future annual reserve contributions. The article acknowledges that estimates of the future may not be entirely accurate due to unforeseen events but emphasizes the importance of RFS in strategic planning to prevent financial difficulties in condominiums and ensure better financial outcomes for owners in the long term.