Depending on the property or association type in question, your financial reserves account may be subject to different regulations. Requirements for financial reserves vary based on the type of property, whether it be an investment property or a commercial association. We offer you a reserves investments advisory as part of our consulting services, to ensure that your reserves account has the right funding amount for your property type. We have experience in working with many properties and associations and can advise you on how to manage the funds to meet current regulations. We offer this service using our many years of experience in the commercial property industry.

Not understanding the relevant regulations can expose a board of directors to significant legal liabilities. Director liability is a very real possibility where funds are misallocated or poorly managed by a board that does not know the regulations that pertain to the amount required or restrictions on use. For instance, using the wrong type of funds for construction, maintenance, and repairs can lead to various legal implications. Also removing reserves without replenishing them can be an illegal act and it’s crucial that the board of directors are aware of these restrictions. We can assist you in meeting the compliance requirements and help you properly manage the reserves accounts in order to shield yourself from liability.

If you follow reserve processes inappropriate for your type of property or association, it is very easy to set aside too little, or too much, reserve funds. It is essential to have the right amount in your reserve fund for unexpected capital expenditures, and we can show you the formula to determine the optimal reserve fund amount, if you are required to have any at all. There are specific ways to determine the amount of reserve funds needed for commercial properties in the Los Angeles Metro area, and our advisory service will show you how to make that computation for your property.

We can give a free evaluation to the board or owner, ensuring they are in compliance with the relevant laws and regulations. Our consulting services are part of our property management business, and we use our knowledge of the rules governing the reserves for commercial properties to keep you free of potential conflict. We offer this evaluation free of charge to demonstrate our interest in having you as a client.

We assist boards and owners in maintaining the correct level of reserves without the operating account, curb appeal, or tenant moral suffering. If too little is kept in reserves, any large expense can deplete the fund quickly, which can limit the amount available for other improvements or repairs. Having a correct level of funding will ensure that the property is kept in good condition and tenants are satisfied with the ongoing management.

Please contact us at (888) 611-5598 for advice on your reserve funds, and how to protect yourself against any regulatory or management problems.