Cameron Carter, President of Normac, explains the benefits of a Depreciation Report (Reserve Fund Study) in depth and in his own words.
Depreciation Reports are required in order to make adequate provisions for major repairs, replacements and improvements of building components and common elements. The BC Strata Property Act and the Provincial Condominium Acts throughout Canada legislate that strata and condominium corporations must establish and maintain contingency reserve funds for these shared expenditures.
Depreciation Reports focus on a property’s components found within the common areas, which include, but are not limited to structure, enclosure, electrical, mechanical, fire safety, interior finishes & amenities, and site work. These are all items that require attention and care throughout their respective lives. Consequently, a Depreciation Report highlights each component’s expected life span, current condition, and future requirements.
To learn more on the amendment to the Strata Property Act (BC) and its subsequent requirements please visit our Resources + Publications page. For more general information about Depreciation Reports, see our FAQ page. To request a Deprecation Report Proposal, click here to contact us.