Condo Owners Must Ask Their Strata Council for Their Depreciation Reports

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Condo Owners Must Ask Their Strata Council for Their Depreciation Reports

As of the end of 2013, all strata councils are now required the provide property owners and future buyers detailed information through depreciation reports. They reports highlight the areas that you are responsible for as an owner of your property. However, the real purpose of the depreciation reports is give your strata council a full 30 year planning on how they are going to implement the management and maintenance of your complex.

Check your documents

It is important you understand what they reports mean. There have been incidents where these reports are not as correct as they should be. It is essential your strata council has prepared accurate depreciation reports as they are directly related to the requirements of producing a constancy report fund – that will impact the value of the whole strata complex, and then ultimately affect the value of your property. These documents represent the foundation of the future value of the complex as a whole and therefore your property.

Who produces your documents?

Reserve Funds Analysts first create the depreciation reports because they are the foundation of the 30 year projection the Reserve Fund Analyst will create to determine the future costs of maintaining the strata complex you own. There is no way in avoiding the fact that all property prices inside the strata complex are tied together. You should think about getting involved in the selection of the Reserve Fund Analysts.

Why this happens?

Not all Reserve Fund Analysts are as good as others. Not all of them have the building and construction experience they should have even if they have been accredited as a Reserve Fund Analyst.

Why are the depreciation reports so important?

Market forces will continue to play a big part in the value of individual properties in strata complexes based on the validity of the depreciation reports because they form the basis of the financial planning of the complex. Strata councils are required to update their reports every 3 years, but that doesn’t mean constantly changing financial planning into the next 30 years should be changing all the time.

If you complex does not have a good record of solid depreciation reports, you strata councils planning will be greatly affected. This in turn will put off buyers and that can flow on without you even knowing. One property for sale in your strata complex will influence the total value of all properties in the complex because news will spread.

If you need to know more about strata depreciation reports, Lloyd Kenzle is more than willing to help.

Need clarification?

Need more information and have questions? Contact C4U Inspections today

*Lloyd doesn’t break the rules for anyone and as a leading chief home inspector in BC, that means he follows industry requirements, government regulations and licensing codes of conduct to the letter.

Unbiased, ethical and professional home inspection and building consulation services.