How does a reserve study empower the property representatives from fiscal mismanagement claims?
Property decision makers are fiduciaries who must serve the best interest of the property needs. The decision makers are responsible to maintain the property in good and safe condition. Strategic reserve contributions, as recommended within reserve studies, maintain an adequate amount of working capital to preserve the property. As a result, the property representatives alleviate themselves from potential mismanagement claims as this portion of their responsibility is deferred to professionals.
