Our Certified Reserve Planners (CRPs) and Engineering Trained Professionals tap into their expertise and vast experience when compiling Reserve Fund Studies (referred to as ‘Depreciation Reports’ in British Columbia) for client companies. We have a multi-disciplined team of specialists including financial experts, costing-experts, and building condition experts, each bringing their respective proficiencies to the forefront when compiling the reports. We approach every report with an unbiased lens and diligently prepare our findings with the knowledge that our clients require customized solutions and not generic reporting.
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.
Once a Depreciation Report or Reserve Fund Study is complete, it becomes an effective tool as it provides a great deal of valuable information. The report provides a solid foundation for future planning by establishing an inventory of assets, setting a schedule for timing short and long term projects, and providing estimates for current and future project costs. Property owners and managers can use their Depreciation Report or Reserve Fund Study as the starting point for creating a capital plan, a maintenance plan, a short-term renewal plan, an annual budget, and as a framework of communication to help owners understand project priorities and costs. Read Normac’s Getting the Most from your Depreciation Report or Reserve Fund Study for further information.
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.