Good morning!

This time of year is less about pushing harder and more about executing cleanly. We know what matters, we know our priorities, and we’re capable of finishing well together. Let’s stay steady and intentional through the final stretch.

— Lucas Robinson, Founder & CEO at BudgetMailboxes.com

🎯 This Week’s Strategy:

• Reserve Fund Optimization Strategy

🤝 Boardroom Brief:

• Judge Dismisses Nationwide Mobile Home Rent Lawsuit
  

Strategy

🎯 Reserve Fund Optimization Strategy

A well-managed reserve fund is one of the most overlooked tools in property management. Too often, reserves are either underfunded, overfunded, or sitting idle without a clear plan. A Reserve Fund Optimization Strategy ensures capital is available when needed, aligned with long-term asset planning, and working efficiently to protect property value and cash flow.

This strategy helps property managers reduce financial risk, avoid surprise assessments, and make smarter capital decisions across their portfolio.

How Property Managers Can Implement a Reserve Fund Optimization Strategy

1. Conduct a Comprehensive Reserve Study Review

Reserve funds should be based on data, not assumptions. An updated reserve study provides clarity on future capital needs and ensures contributions are aligned with real-world timelines.

Action Steps:

• Review or commission a professional reserve study covering major building components such as roofs, HVAC, plumbing, elevators, and parking structures.

• Validate remaining useful life estimates against actual maintenance history.

• Update reserve studies regularly (typically every 3–5 years) or after major capital projects.

2. Align Reserve Contributions with Long-Term Capital Planning

Consistent underfunding creates risk, while excessive reserves can strain cash flow unnecessarily. Optimization means finding the right balance.

Action Steps:

• Adjust monthly or annual reserve contributions based on updated reserve study projections.

• Model multiple funding scenarios to understand best-, expected-, and worst-case outcomes.

• Align reserve funding with capital improvement plans and asset lifecycle strategies.

3. Separate Operating Cash from Reserve Funds

Blurring the line between operating accounts and reserves creates reporting issues and increases the risk of misuse.

Action Steps:

• Maintain separate bank accounts specifically designated for reserve funds.

• Establish clear internal policies defining when and how reserve funds can be accessed.

• Ensure reserve balances are clearly reflected in financial reporting and owner statements.

4. Optimize Reserve Fund Placement and Liquidity

Reserve funds should remain accessible, but that doesn’t mean they should sit idle. Thoughtful placement can preserve value while maintaining liquidity.

Action Steps:

• Work with financial institutions to identify low-risk, interest-bearing accounts or instruments appropriate for reserve funds.

• Match liquidity needs to expected project timelines (short-term vs. long-term reserves).

• Avoid speculative investments; preservation of capital should remain the priority.

5. Use Data to Proactively Plan Capital Projects

Reserve optimization isn’t just about saving money. It’s about spending it strategically and at the right time.

Action Steps:

• Track capital expenditures against reserve projections to identify variances early.

• Use maintenance data to adjust replacement timelines before failures occur.

• Coordinate reserve planning with preventive maintenance programs to extend asset life and reduce long-term costs.

How to Implement the Strategy Effectively

• Establish Governance: Define clear reserve fund policies, approval thresholds, and reporting standards.

• Educate Owners and Stakeholders: Communicate the purpose and benefits of reserve funding to build trust and alignment.

• Review Annually: Even without a full reserve study update, conduct annual reviews to account for inflation, completed projects, and market changes.

• Integrate with Financial Reporting: Ensure reserve performance is included in budgeting, forecasting, and portfolio-level decision-making.

When reserve funds are optimized, property managers gain financial stability, owners gain confidence, and properties are better positioned for long-term performance. This strategy turns reserves from a reactive safety net into a proactive financial planning tool.

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Boardroom Brief

Judge Dismisses Nationwide Mobile Home Rent Lawsuit

A U.S. federal judge in Chicago dismissed a proposed nationwide class-action lawsuit accusing major manufactured housing operators of colluding to inflate mobile home lot rents, ruling that plaintiffs failed to plausibly allege price-fixing under antitrust law. While the court acknowledged that sharing competitively sensitive data through third-party market reports could potentially raise concerns, it found the plaintiffs’ market definitions and arguments insufficient at this stage, though an amended filing is permitted. For property managers, particularly those operating manufactured housing communities, this decision reinforces the importance of careful data use, transparent pricing practices, and clear internal documentation, as legal scrutiny around rent-setting methodologies and market intelligence tools remains active despite this dismissal.

Game

🎉 Fun Finale: Play & Poll

3 Tricks Billionaires Use to Help Protect Wealth Through Shaky Markets

“If I hear bad news about the stock market one more time, I’m gonna be sick.”

We get it. Investors are rattled, costs keep rising, and the world keeps getting weirder.

So, who’s better at handling their money than the uber-rich?

Have 3 long-term investing tips UBS (Swiss bank) shared for shaky times:

1. Hold extra cash for expenses and buying cheap if markets fall.

2. Diversify outside stocks (Gold, real estate, etc.).

3. Hold a slice of wealth in alternatives that tend not to move with equities.

The catch? Most alternatives aren’t open to everyday investors

That’s why Masterworks exists: 70,000+ members invest in shares of something that’s appreciated more overall than the S&P 500 over 30 years without moving in lockstep with it.*

Contemporary and post war art by legends like Banksy, Basquiat, and more.

Sounds crazy, but it’s real. One way to help reclaim control this week:

Skip waitlist.

_{*Past performance is not indicative of future returns. Investing involves risk. Reg A disclosures: masterworks.com/cd}