Depreciation Reports are documents that are designed to assist Strata Corporations and Owners prepare the financial plan for the complex. For reports to be comparable, they must follow similar standards.
The problem in British Columbia there are no set standards for Depreciation Reports. The Appraisal Institute of Canada (AIC) has the most complex standards, which in turn are based on the Real Estate Institute of Canada (REIC) standards and other disclosure rules of the AIC. The National Reserve Study Standards (NRSS) utilized in the USA are also recognized as a leading document, but there is no Canadian group enforcing compliance. The result is that reports are not comparable in terminology or reporting methodology.
The second issue is that some reports are not prepared in a transparent manner, meaning if a Strata Corporation wishes to use an alternate supplier next time, none or little of the report information may be usable. The result is the next provider cannot provide a discount at a cost-effective price and will have to start the full process again, at the full cost. The result is that some Strata Corporation’s feel bound to go back to the original supplier
Bramwell & Associates has created a fast review checklist based on a document called CARSS (Commonly Accepted Reserve Study Standards). The purposes of our review service is to allow strata councils to make sure their report covers off the AIC, REIC and NRSS compliance issues, as well indicates those areas in a report that may be more transparent.
If you have just received a Depreciation Report, need to know if changes are required before the Draft copy is complete, or just want to know where your provider stands, please call us at 604-608-6161.