Reserve Rule of Thumb
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RESERVE RULE OF THUMB

Some believe there is a "rule of thumb" for funding reserves, such as (i) reserve contributions must be 10% of an association's total budget, or (ii) reserves must be 50% funded.

No Rule of Thumb. There is no rule of thumb for reserve contributions or funding. Every association is different. They all have different common areas, different components, different ages, different manufacturers, different levels of deferred maintenance, etc. As a result, it would be impossible to establish a rule of thumb. Instead, all associations must conduct a reserve study and then establish a funding plan to meet the funding requirements established in the study.

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Adams Stirling PLC