What qualifications are required to prepare a Depreciation Report
According to the Strata Property Act, none. It’s up to the Strata Corporation to choose if they are qualified.
In other provinces, legislation has provided some guidance in that CRP (Certified Reserve Planner) from the Real Estate Institute of Canada; AACI (Accredited Appraiser of Canadian I…
Why Do I need a Depreciation Report?
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…
What Are the Funding Principles?
There are four Funding Principles that we use to balance your reserve funding plan.
Sufficient Cash - Our first objective is to design a funding plan that provides you with sufficient cash reserves to perform your reserve fund projects when required.
What are the Funding Choices in a Depreciation Report?
Once a strata corporation has established its Funding Goals, the strata council can select an appropriate funding plan. Strata Reserve Planning has identified the five (5) primary funding models currently in use by strata corporations in British Columbia. Depending on current strata corporations’ …
How Do Depreciation Reports Support Market Value?
In order to have a Depreciation Report support Market Value, the report must be measured by the Threshold method as well as follow the four Funding Principles.
Simply put, Depreciation Reports support Market Value when the amount saved in the Contingency Reserve Fund, as a percentage, i…