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THE IMPORTANCE OF RESERVES
By
Rafael Aquino
Published July 14, 2021
Reserves are monies set aside for specific
expenditures that will be incurred in the future. Usually, such
expenditures relate to the cost of major repairs to, or replacements
of, the Association property such as roof, pool, asphalt, elevators,
paint, and life safety systems. If funds are not set aside for these
expenses, unit owners will usually have to pay a special assessment
when such repair or replacement occurs.
The preparation of a reserve schedule is a task
of significant importance requiring expertise and resources that
will allow for the proper evaluation and inventory of all common
elements and components requiring reserve allocation, determination
of its entire useful life, remaining useful life, and cost of
deferred maintenance or replacement. There are specialized
professionals such as engineers, contractors, and Reserves
Specialists that can provide the Association a reserve study report
which will meet the Association’s needs when planning for reserves.
It is strongly suggested that the Association acquires a reserve
study and properly funds for reserves.
All too often contributing to reserves in the
annual association budget becomes a conversation about how to pick
up enough proxies to prevent its inclusion in the budget, or that
paying for a reserve study would be too much, or that if there no
reserves increasing the budget to accommodate for a bank loan would
also be cost-prohibitive. Leaving the Association with no plan or
resources for the future and exposed financially and delaying and
expanding much-needed capital repairs.
The truth of the matter is that any association
without reserves is lying to itself and creating a MAJOR false sense
of expectations for its residents. The monthly association fee
should reflect what it truly costs to operate and maintain the
association services and all common area components. This includes
reserves!
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As the Co-Founder and CEO
of Affinity Management Services, Rafael P. Aquino leads his team to
redefine excellence. They serve community associations
efficiently |
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and effectively with
dedication and passion. Rafael’s energy and positive
spirit is the foundation of Affinity Management
Services’ company culture, which instills enthusiasm and
excitement when providing expert advice to its board
members and relieving the day-to-day burdens of running
a community association.
Since 2007, Rafael has
developed a work culture that values responsive and
high-quality services. He has led his team by following
a proactive vs reactive philosophy. The same approach
Rafael instills in the day to day operations of each
association. Today, Affinity Management Services
maintains its success and benefits as a result of the
foundation Rafael has built and continues to foster by
providing educational seminars, continuing education
classes for association managers and board members
alike.
Rafael and his team help condominium and homeowners’
associations save money and improve their communities.
His calm, personable, and service-oriented nature helps
him to establish strong relationships with ease. Rafael
is known as a sincere and honest leader who looks out
for the best interests of his clients and communities,
and he strongly advocates for their needs. His role
requires coordination and communication, as such he
takes logical and intelligent steps to approach
challenges head-on.
As a graduate of Florida International University’s
electrical engineering program and a licensed community
association manager, Rafael’s education and skills equip
him with unique insights to tackle complex problems
through critical thinking. He understands how each
component within a system works together in order to
effectively arrive at solutions, techniques, and
conclusions. Therefore, as he manages the multiple
challenges of running a community association management
company, he understands how each property is its own
unique system and tailors’ specific services to assure
that all their needs are met.
For more information about Rafael P. Aquino and Affinity
Management Services please visit
www.ManagedByAffinity.com or call 1-800-977-6279
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Doral Office: 8200 NW 41st ST
Suite 200
Doral, FL 33166
Broward Office: 150 S Pine Island RD Suite 300
Plantation, FL 33324
O: 800-977-6279 ● F: 305-325-4053
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