According to the Strata Property Act, all Strata Corporations must obtain a Depreciation Report to ensure the complex has a plan to have sufficient funds in the Contingency Reserve Fund (CRF) to maintain the building(s) and common assets.
There are two integral parts to a depreciation report: the Physical Analysis and the Financial Analysis. What follows is a brief description of how your depreciation report was put together.
During the physical analysis, a depreciation report / reserve study planner evaluates information regarding the physical status and major repair or replacement cost of the strata corporation’s major common area components (exterior walls, roofing, hallways, elevators, amenity rooms, parking, etc.).
As part of this, the depreciation report / reserve study planner conducts a component inventory, a condition assessment review and prepares life span estimates.
During the financial analysis, the dp/is planner takes the historical financian information, the projected expenditures determined in the physical analysis, and creates a plan with the Strata Council to meet the future financial obligations.
SRP is proud to hold copyrights in Canada and the US on how to support Market Value for the Strata lot owners, even when the CRF is low.