Hotels, and Ownership Resorts

Adequate reserves refer to a sufficient amount of funds or resources set aside by an organization to cover future expenses, liabilities, or unforeseen events.

Operating expenses and reserve expenses differ primarily in their timing and purpose.

It’s best and some cases, required, for any organization, association, or institution that is responsible for maintaining common elements of that entity to have a reserve study conducted. This could include owners’ associations, universities, country clubs, churches and many more.

Reserves typically fund expenses and liabilities that are either anticipated or unexpected, providing financial security and stability to an organization. Here's what commonly gets funded with reserves and what doesn't.