Hiring outside professionals to assess the systems and structure of a condominium is often scoffed at by HOAs because of the expense. It’s as shortsighted as complaining about the cost of toothpaste. Condominiums are larger and definitely more complex than single-family homes. It’s negligent not to have plans in place that understand the current condition of the overall building coupled with a plan for regular maintenance that stretches out as far as the longest-lived components.
It’s also critical that reserve studies are performed by outsiders. HOAs and management companies may either lack the expertise required or want to soft-pedal the truth to avoid uncomfortable conversations with residents. We are generally “shoot the messenger” kind of people.
Another reason for using an outsider can be managing companies that also have their own staff contracted to perform repairs. If they’re the ones doing the capital reserve studies, isn’t that a whopping conflict of interest? Didn’t Fair Park teach us that competitive bidding is best?