Depreciation reports are now mandatory in British Columbia. Strata corporations are required to obtain a depreciation report every three years.
Depreciation reports help strata corporations plan for the repair, maintenance and eventual replacement of common property, limited common property and common assets. By conducting a depreciation report, you can plan properly for your property. Catching and fixing the problems early on will prevent it from developing into a more serious issue that may cost much more to fix later on.
Depreciation reports typically contain an inventory of common property and assets, anticipated maintenance, repair and replacement costs for these assets and a summary of estimated maintenance work costs for the next 30 years. A good depreciation report will predict when strata owners can expect to repair or replace common property and predict how much this will cost in the future to maintain.
Although conducting a depreciation report is a legal requirement, the information in these reports can be confusing and useless.
The cost of preparing a depreciation will vary depending on the size of the property and the complexity of the development. Typically, the initial report will cost more than following report updates.
This will make it easier for you to decide which areas of your property needs maintenance work and which areas do not.
While depreciation reports provide a good insight on the overall condition of the building property, they cannot prevent your property from deteriorating. This will help protect your property quality as well as save money in the long run.
Duxbury & Associates Building Inspection and Consulting Ltd. provides services for producing depreciation reports. We also provide a service for interpreting depreciation reports (done by others) if you are lost in a fog trying to understand what it is all about or if it is accurate.
Contact us today to find out more about this service.