What is a depreciation report?
A depreciation report is a capital reserve fund study that helps strata’s plan for the long term. Even though it is mandated by BC strata regulations, it is a great idea because it gives you:
• The estimated 30-year funding required for renewals and repairs of the Strata’s capital assets.
• A 30-year schedule of capital renewals.
• A complete list of common property assets along with associated capital renewal projections.
• Three financial models based on the expenditures identified for replacement of the Strata’s major common property assets, as required by BC Strata Property Act.
While many strata don’t currently have a depreciation report it becomes more important for them to get one. Having the information in a depreciation report helps the strata board manage their long term repair and replacement of their common property assets.
