What is a Depreciation Report?
- It is a legislated report, introduced by the BC Provincial Government that helps strata corporations in BC plan for the repair, maintenance and replacement of common property, limited common property and common assets.
- It is an inventory of the common property including building systems.
- It outlines maintenance, repair and replacement costs for common expenses projected over 30 years.
- It contains a financial forecasting section that has at least 3 cash flow funding models for the contingency reserve fund (CRF).
- It must be renewed every three years.
Many people feel uncertain about Depreciation Reports, but they will provide a proactive approach to understanding the timing and capital costs of replacing building components. These reports are valuable for owners as well as will help prospective buyers, mortgage providers and insurance companies make informed decisions.
Strata corporations are required to obtain a Depreciation Report by December 14, 2013 unless they have passed a ¾ annual vote to waive the requirement.
If you are uncertain as to what your strata intends to do, you should attend your AGM or talk to your Strata Manager.
Empower yourself with knowledge.