Frequently Asked Questions

1. What is a depreciation report?

A depreciation report, also known as a reserve fund study, is a document that outlines the expected replacement time and costs of major components in a building. This report helps owners financially plan for long-term maintenance and repairs.

2. Why is a depreciation report important?

A depreciation report is an essential part of ensuring that buildings are well-maintained over time. Having a depreciation report helps property owners and managers effectively plan for future repairs and replacements, ensuring that the building remains in good condition and retains its value in the market.

3. Is a depreciation report legally required?

Yes, for most strata corporations, the preparation of a depreciation report is a legal requirement under the British Columbia Strata Property Act; however, strata corporations with fewer than five units are exempt.

4. What is included in a depreciation report?

Depreciation reports typically include:

A review of documentation such as drawings, past maintenance records, and financial statements.
A physical analysis of common building components to assess their current condition and expected replacement costs.
A 30-year forecast of anticipated expenditures.
A financial analysis to produce three funding scenarios considering inflation and interest.
A professionally stamped report meeting the legal requirements.

5. Can the report be accessed online?

Yes, we provide an online system where homeowners can review the report at any time. This allows strata owners to view dynamic working copies of the report, update expenditures as necessary, and upload supporting documents when required.

6. What types of buildings have you worked on?

Reserve Reports Canada has prepared reserve fund studies for:

Multi-building complexes
High-rises
Wood-framed low-rises
Townhouse complexes
Co-operative housing
Mixed-use developments (commercial/residential/hotel)
Joint and individual strata
Newly constructed, newly renovated, and aging infrastructure

7. How do you support strata owners after the report is prepared?

We provide a user-friendly online system that is designed to make it easy for strata councils to manage their maintenance and renewal programs. This includes viewing documents, receiving email notifications of upcoming activities, and maintaining a permanent record for future owners and managers. Our team is also readily available to answer any questions and to provide further ongoing support.

8. What is the value of conducting a depreciation report?

The benefits of conducting a depreciation report for your strata complex include but are not limited to:

Compliance with the BC Strata Property Amendment Act.
Distribution of replacement costs among owners.
Reduction in the need for future special levies.
Cost savings by contributing regularly before expenditures occur.
Maintenance of property value in a competitive market.
Informed ownership on the condition and value of their asset.

Properly Plan for the Future.

Be Properly Prepared with a
Reserve Reports Canada Depreciation Report.