Morris Real Estate Team

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What exactly is a Depreciation Report?

A depreciation report is to help strata corporations plan expenses for repair, maintenance & replacement of common area items.  The report must contain the inventory of the commmon property, anticipated expenses spanning the next 30 years and a financial plan for the contingency reserve fund, in order to pay for these anticipated expenses.

 

I think we will find, in the future that financial institutions will only fund strata corporatins that have done a depreciation report  and by the way, the report has to be updated every three years. I see that Insurance companies will start to require a current report in order to insure your property.  It is a valuable tool for a Seller and equally beneficial to a potential Buyer of a property.

 

The cost of the report may vary depending on the complexity of a strata and the company that is hired to do the report. No matter the cost to have the report done - it could save you thousands of dollars in the future.

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