Essentially, there are three standards for a reserve study: the National Reserve Study Standards of Community Associations Institute, AICPA Audit and Accounting Guide for Common Interest Realty Associations; and Reserve Funds: How and Why Community Associations Invest Assets, published by CAI. "The study should be prepared by a reserve specialist or a licensed engineer, and it includes everything from a physical analysis, including component inventory, condition assessment and life and valuation estimates, to a financial analysis, which includes fund status and a funding plan," explained Frumkin.

Today, funding is a top priority for every building manager. And there are several different funding plans available: full/proportional funding, baseline, threshold or statutory. "There are benefits to all four," according to Frumkin, "but each association must base the decision on their budget, cash flow projections, amount of risk and updating frequency. But keep in mind, when deciding on adequate funding, it does not always mean full or proportional funding."

After a reserve study is completed, it should be reviewed yearly, noted Frumkin. "You should also review the study whenever major expenditures are made. And it should be used not only as a budgetary tool, but as a planning one."

Once property managers have completed a reserve study, it's then time to make some decisions about maintenance and energy costs. For its part, Energy Squared offers an energy audit, which quantifies how much energy can be saved through the application of sustainable solutions. The company analyzes past utility bills and inspects all mechanical, electrical and plumbing equipment in addition to each of their specifications.

Other services offered include building modeling and simulation, which creates a digital version of buildings to calculate future energy consumption and costs on an hourly, daily and annualized basis; commissioning; mechanical and electrical system designs; a renewable energy feasibility study; life cycle evaluations; green verification; and design of control systems. Energy Squared will also complete and file rebate, incentive and tax credit applications with the appropriate government agencies.

The company laid out a variety of case studies, including an engineering evaluation performed on behalf of Ocean Cove Condo, a 20-year, multi-level condominium with "grossly over-sized existing units, kitchen exhaust that was returned to the apartments and excessive outside air delivered into the space," according to Samuels. Energy Squared reduced the unit capacity from 300 tons to 175 tons, with an estimated cost reduction of over $175,000 and a 25% reduction in energy consumption.

While the average person is not in a position to purchase solar panels, there are a variety of inexpensive energy-saving changes that building managers can make, according to Kipcon. These range from air filters--which run around $10 each--to smart water heating from $500 to $700, plus $100 for installation. Building owners can even lease a set of solar panels. According to Frumkin, "Many solar leasing companies will install solar panels on your property free of charge and then bill you at a reduced rate for the power you use." Other ways to optimize your assets include compact fluorescent lights, window treatments, sealing air leaks, lighting motion sensors, programmable thermostats, smart water heating and attic insulation.