Amenity area elements like the community pool, tennis courts, and playground, will eventually need to be replaced or have parts of them replaced. To plan and save for those costly replacements, your association needs to conduct a reserve study. A reserve study is conducted by a firm that sends experts to evaluate the physical components of your property. The most accurate reserve studies are conducted by licensed engineers who understand the industry. The analysis will consider the current state of your reserve funds and will recommend appropriate funding levels to make sure you can cover capital expenditures for the next 30 years. Even though a reserve study plans 30 years into the future, your association needs to have it updated every few years to account for things like storm damage, capital improvements, new assets, and changes in interest rates and property values.