Depreciation Reports tell Owners how much they need to save to meet future maintenance obligations. Strata Reserve Planning believes more – We work with the Strata Corporation to come to a realistic funding solution to Support Market Value.
A Depreciation Report or Reserve Fund Study is a physical and financial analysis of the Strata Corporation’s components, improvements and assets, with recommendations for the funding the Contingency Reserve Plan (CRF).
In other words, it is a plan for the provision of financial resources for major repairs and replacements of building components (such as roofs, siding and windows), improvements (such as patios and roadways, landscaping, pools, etc.) and assets (furniture, fixtures and equipment, etc.) over time, to ensure adequate funding of all future capital expenditures when required.
A Realistic Funding Solution means to find a level of CRF funding that the Strata Corporation members can live with, while keeping in mind the return that the CRF Investments are receiving, as well as Construction Cost Inflation (CCI), and the goal of all Owners to maintain Market Value.
As the reserves are increased, the Strata Corporation can plan and not react to short term and long term funding needs.