What is a Depreciation Report? Strata Corporations have the responsibility of taking care of a strata property on behalf of all of the strata owners. They are the governing body for all decisions affecting the property including the responsibility for the maintenance of the property and budgeting for all maintenance, repairs and improvements.
As buildings age, the repairs and maintenance that is needed for the building will also change. For instance, with a new building the need to budget for immediate repairs for the roof is not needed because the roof is expected to last 20 to 25 years. Maintaining the painted surfaces however, is something that will require attention and money within a few years and on an on-going basis. Virtually every part of the building will require some maintenance or repair over the life of the building.
To budget properly the strata corporation needs to understand the condition of each component of the building and the expected life span and maintenance requirements of each of those components. This is a big responsibility! Skyview Inspection 360 Ltd. can help! Not all components will last as long as expected and therefore monitoring of key components is a good practice to avoid sudden unplanned repairs, or worse, expensive damages due to premature failures. A good example of this is water-proof decking material. It may have an expected life span of 15 years, but due to weather, usage habits, installation problems or poor maintenance the deck may be in failing or poor condition in only 5 years. What is the condition of your decks? Are they likely to fail soon? If they do fail what damages will occur? Is water leaking in now and causing rot?
To assist Strata Corporations, Skyview Inspection 360 Ltd. offers Strata Condition Inspections. We understand multi-residential buildings and how they are constructed. We understand materials and equipment age expectations, what causes premature deterioration and we can assess these items to determine their condition.
A Strata Condition Inspection and Report will identify which items were inspected, the condition of each and, where applicable, the expected remaining life span of these items. The Strata Corporation can then use this information to determine a maintenance schedule and replacement budgets and, if needed, revise maintenance and replacement budgets. Items that are in need of immediate attention will be specified and recommendations for repair or maintenance will be given.
After the Strata Condition Inspection and Report are completed Skyview Inspection 360 Ltd. will still be there assist. We will meet with the Strata Corporation and discuss any questions or issues with the Report. It is expected that the Strata Corporation may not be able to immediately undertake all recommended repairs and Skyview Inspection 360 Ltd. will sit with the Strata Council and detail which items should be repaired first and which ones can wait.
A residence purchase for most individuals can be the basis for long-term asset and investment planning and when maintained properly will keep its value. No one plans to lose money or be unable to sell their property when they wish to.
Who needs a Depreciation Report? Since December of 2013 Strata Depreciation Reports have been required for all strata developments in British Columbia.
Benefits of a Depreciation Report What a Depreciation Report can do for you is eliminate the possibility of special levies or unexpected financial costs that can challenge your financial safety. As well, future real estate dealings can be hampered by poor or non-existent contingency planning and unavailable insurance purchases.