Depreciation reports outline which building system components need to be repaired and maintained, along with associated expected costs and time frames. Planning for these future expenses is an important part of these reports, as strata owners may need to put money in “contingency” funds over time. These “forced” savings will help ensure the funds are available when the repair or maintenance needs to be performed.
The report should “discuss” items such as roof, windows, plumbing, electrical, heating, structure, siding, balcony decks and other items included in common property, limited common property or items the strata must maintain and repair. Depreciation reports are mandatory for B.C. strata corporations with five or more units.
Who Creates a Strata Depreciation Report?
Strata depreciation reports should be prepared by a qualified professional such as an engineer or an architect who has suitable errors and omission insurance.
Can Strata Depreciation Reports Be Postponed?
A strata corporation can decide to postpone doing their depreciation report by a ¾ vote at their AGM or special general meeting. This process will be repeated until the strata decides to produce the report. Also, the Information Certificate (Form B) must indicate whether a depreciation report exists, and will include this report if one exists.
How Do I Create a Depreciation Report?
Strata corporations start by requesting proposals and gathering/organizing documentation about their strata to assist the hired consultant in preparing an accurate and meaningful depreciation report. Afterwards, based on quotes and credentials provided by a few consultants, the strata decides who’ll they will hire to produce the report.
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