A reserve study is a formal assessment of the contributions required by members of a homeowners association to offset the eventual costs of repairing shared elements. Shared elements may include a sidewalk, roof, front gate, or any other common areas in a complex of privately-owned homes. Professionals examine these shared elements and attempt to predict their lifetime and how much it will cost to replace them. They then take a look at the member contributions to see whether enough money is collected annually to cover the costs of the eventual repairs. Reserve studies are an interesting aspect of real estate because they have the potential to raise or lower property values. To find out more about this little-known yet essential subject, take a look at our new article on reserve studies.