Depreciation Report – why do you need one?
August 2015

Welcome to our August 2015 newsletter. The hot dry summer is almost over, which means that hockey training camps are just around the corner...

As always, I look forward to your thoughts and comments.

All the best, 
Ernie Paustian
Ernie Paustian


Depreciation Report – why do you need one?

When we ask Council members why they are having a depreciation report completed, they will most often say “the last one is 3 years old” or “the Strata Property Act requires one”.

While both answers are correct, a reserve fund study should provide additional value beyond meeting therequirements of the Act.

One of the goals of a depreciation report should be to make the job of being a Property Manager and Council member easier. As most Property Managers and Council members would rather avoid the difficult task of recommending a special levy, a good reserve fund plan should provide options that reduce the risk of a special levy.

The depreciation report should provide funding options that allow for needed major repair and replacement expenditures, while again reducing the potential of a special levy. Contributions should be fair and equitable, balancing the needs of current and future unit owners.

The report should also be used as a time saving tool by the Property Managers and the Council members during the annual budgeting process.

An often forgotten role is involvement of the unit owners in the depreciation report process. It’s important for unit owners and residents of a condominium complex to contribute their comments and concerns regarding the state of common property. Residents can often assist in identifying minor building issues that aren’t readily apparent, before they become significant problems.

Some condominium related links:

Assessing recourse for repairs to piping problem

Directors – heed your duties or beware

Residents challenge vote on lobby redecoration

Court cost comments

Reviewing strata documents

Shared expenses part of condominium living

Thank you for taking the time to read our newsletter. At Delta Appraisal, we are passionate about the condominium industry, working with Property Managers and Council Members to set realistic budgets, while prioritizing maintenance and repair projects.

Our functional Depreciation Reports are unbiased as we are not competitors in property management, maintenance or project management.

For more information about Delta Appraisal and our easy to read Depreciation Reports or to request a no-cost, no-obligation proposal, please contact us.

 

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