This article will explain why Transcendent makes a good Enterprise Asset Management (EAM) for Homeowner Associations.
Can Homeowners Associations Prevent Special Assessments Using Hosted Preventive Maintenance?
As more and more States mandate the use of Reserve Studies Homeowners Associations (HOAs) are beginning to realize the hidden savings potential each reserve study contains. A Reserve Study is a planning tool for maintaining the common areas that a HOA has responsibility for.
Using a Reserve Study
The purpose of Reserve Study is to ensure that there is sufficient money available to maintain, repair or replace common HOA property such as roadways, lights and roofs. Having sufficient monies on hand eliminates the need to apply a special assessment to property owners within the homeowners association. Savvy HOAs are now realizing that the data collected for the Reserve Study has an additional value that can save them additional monies.
A Reserve Study typically includes a very detailed listing of the assets of the HOA. This inventory listing includes a descriptions of assets, estimated useful life left and current replacement costs. Using the asset detail a financial plan can be outlined to cover the expected repair or replacement date of items. A smart HOA will then use this data to initiate a preventive maintenance plan.
“Once you have determined which items are reserve components, it is time to establish a preventive maintenance schedule. Associations should establish a preventive maintenance schedule for two primary reasons:
A hosted Preventive Maintenance solution means that the software used to manage the preventive program resides on our servers. There is no need for buying expensive computers as everything you need is accessible 24/7/365 using the web. Integrating handheld devices will virtually increases efficiency by eliminating paper. In addition, preventive maintenance has several other benefits including:
- Extending the assets useful life
- Reducing the likelihood of sudden replacement costs
- planning, scheduling and maintaining a more efficient work ordersystem
- Reducing liability as a result of repair negligence claims
Following the Reserve Study capital funding schedule and instituting a hosted preventive maintenance solution significantly reduces the likelihood of having to levy a special assessment to replace or repair major assets.