What is Reserve Fund Planning?
And what is a Depreciation Report?
Depreciation Reports are intended to help strata corporations plan for the repair, maintenance and replacement of common property, limited common property and common assets.
To be done right, these must contain:
- A physical inventory of the common property including building systems.
- Anticipated maintenance, repair and replacement costs for common expenses projected over 30 years – the analysis period.
- A financial forecasting section that contains a strata council - approved cash flow model for the contingency reserve fund.
- Council and the consultant may need to experiment with several cash flow models before they can agree to which works best for the strata corporation.
Depreciation reports are meant to provide useful information to strata lot owners, prospective purchasers, mortgage providers and insurance companies.
Why Edmond Schweitzer?
Our primary goal is to work with councils to produce meaningful Depreciation Reports. The company is covered by errors and omissions insurance, and has earned Better Business Bureau Accreditation.