A depreciation report provides an inventory of your strata corporation’s common property and assets, their projected 30-year maintenance and replacement cost. It also includes multiple cash-flow funding models for forecasting these costs. Depreciation reports must be completed by a qualified planner and require an onsite inspection of your building.
It is a useful tool for strata councils when it comes to budgeting for capital projects and it also gives transparency for owners and buyers on the building. Below is a preview of our infographic on the steps to take when considering on obtaining a depreciation report.
1. Know what the Strata Property Act requires.
All strata corporations are required to obtain a depreciation report. However, a strata may waive this requirement by a 3/4 vote at a general meeting
2. Gather owner feedback.
Owners should have opportunities to ask questions and discuss the uses and benefits of a depreciation report.
Information sessions or discussions at general meetings are great ways to get owners together review the top.
We can help you better understand depreciation reports. Simply download our FREE infographic.
This article is provided for information purposes only. FirstService Residential is not an expert in the subject matter of this article, and this article is not intended to, and should not be construed as, providing expert advice. If expert advice is required to address a specific issue mentioned in this article, the reader should consult with a professional specializing in the subject matter after diligent inquiry regarding the professional’s qualifications, licensing, insurance, history of consumer complaints, and adverse civil or administrative actions.