Michigan reserve study cost

How much is a full study?

For most Michigan condo associations, a full study with a site visit costs a few thousand dollars. The fee tracks how many components there are to measure and cost, which follows size and how much shared property the association owns.

And the updates?

After the first study, most boards switch to updates. CAI's standards describe two kinds:

What raises a Michigan fee?

• Number of buildings. Forty units in ten buildings takes longer to walk and measure than forty units in one.
• Paving and concrete. Long private roads, carport slabs, walks and retaining walls all need measuring. They are also the lines Michigan winters change most.
• Shoreline. Seawalls, docks, boat wells and bluff stairs on the Great Lakes or an inland lake take specialist judgment.
• Travel. Complexes far north or in the Upper Peninsula may carry a travel charge if the provider is based downstate.
• Season. A visit in deep snow cannot see roofs or paving. Many providers prefer April to November, and spring calendars fill first; ask early if your budget meeting is in summer.
• No past study. Building an inventory from scratch costs more than updating one, so keep every study you commission.

How should we compare proposals?

Put them side by side on scope, not price. Check that each one names the level of service, says whether the inspection covers roofs and every building, gives a component count or a list, includes a 30-year funding plan, and says how many revisions are included after the draft. A cheaper proposal that leaves out the shoreline or the private road is not cheaper.

Then think about the fee against the stakes. If the study changes the reserve contribution by even one percent of a typical budget, it often pays for itself in a year. The Michigan floor of 10 percent is the starting point, as our guide to the rule explains.

Which budget line pays for the study?

Treat the study like the annual audit: a professional fee the board plans for, not a component that wears out. Michigan boards differ on where it sits, and some spread it across the three-year visit cycle with a small set-aside. Agree the line with your accountant once, then keep it there so year-on-year budgets compare cleanly.