A Strata Inspection Can Help Inform You Of The True Conditions Of The Building & Property To Minimize Costly Repairs.
At Pacific West Home Inspections, you will receive the following professional service and more:
- A Building Consultant Backed By A Team With 50 Years Experience.
- A Certified & Registered Reserve Fund Analyst By ASTTBC.
- Examine All Aspects Of Construction, Structural, Mechanical, Safety & More.
- Document All Visible Issues And Provide A Narrative Report With Photo.
- Provide a Reserve Fund Depreciation Report.
- Provide A Maintenance Report & Guide For Future Replacement & Repairs.
- Fully Explain The Details Of The Report And Answer All Your Questions.
As your personal consultant, my priority is to provide you with unsurpassed professional services. I take care of your best interest and dedicate myself to serving and representing only you with integrity, professionalism and honesty.
To Book Your Inspection Or For More Information,
Call (250) 833-8955
Strata Depreciation Report
A depreciation report is a legislated planning requirement for strata corporations in British Columbia. Depreciation reports are used to establish long term planning for common property and common assets to determine:
- What assets you own – inventory.
- The condition of assets – evaluation.
- When assets and items need to be replaced – anticipated maintenance, repairs and replacement.
- How much money the fund currently has – contingency reserve report.
- What it is likely the cost for future replacement – a description of the factors and assumptions in projecting costs.
- How the Strata is going to pay for those costs – projected 30 year replacement periods cash flow models.
The regulations have set out requirements for time periods of the reports, qualifications of persons providing reports, schedules for updates, disclosure of reports, conditions of the reports and what information must be contained and financial planning and disclosure. (As explained in Bulletin 400-007 from the Condominium Home Owners Association of B.C.
What is the Purpose of a Depreciation Report?
The purpose of a Depreciation Report is to provide a Financial Analysis recommending a funding plan of projected costs over 30 years from the date of the report. This analysis provides:
- The estimated cost of major repairs and replacements based on the costs assessed at current market value.
- Those same costs then adjusted to the account with assumed inflation rate.
- The operating balance of the funds in reserve.
- The recommended amount of contribution to the reserve fund based on cash flow to adequately offset the costs needed in the year when the expected major repairs or replacement of common assets would be required.
- An estimate of the interest earned on the reserve fund contributions which is based on an assumed market interest rate and as required by the statute these monies shall be reinvested back in the fund.
- The percentage increase in annual contributions for each year of the 30 year study.
- Based on the three funding plans there will be an estimated closing balance of the reserve fund for each year.
Does the Corporation Require a Full Report or an Update?
An initial Comprehensive Study and Full Report is required by the Strata Corporation if one has never been done. An update study is done based on the original information with updates made to the key parameters. Key parameters are the common assets, age, current market replacement costs, current reserve amounts and contributions. When an update is done a site inspection is mandatory. An updated report is then submitted to the Strata in the same format as the original.
When and How Often Does the Study Need to be Done?
Legislation stipulates that after an initial Depreciation Report is completed, updates are required every three years. This ensures that the study has no hidden items or deficiencies and the Strata Corporation can be confident in its reserve fund plan.
Who is Qualified to Perform Depreciation Reports?
Currently, our team are certified as “Registered Reserve Fund Analysts – RRFA” to inspect and complete reserve fund plans on any type of Strata type buildings.
Our approach is to become familiar with each Strata Complex prior to providing a quote for service. By appointment a visit to your complex by our team is made.
Upon a site overview, we provide a quote for services. After Council approval our team will conduct the following:
- A visual (non invasive) review of the property.
- Records are reviewed regarding maintenance and the replacement of assets.
- Building plans and specifications of the building/s are reviewed.
- Strata financial records are reviewed.
Our final report is presented to the Strata Council. This report is provided in hard copy form and in electronic foam. The report can be reproduced for presentation to Unit Owners, Realtors, Mortgage Brokers, Unit Purchasers and other related interested parties.
Our fees are based on a number of criteria, including the following:
- Type of building/s – apartment, townhouse, commercial.
- Number of buildings, number of units, complexity and location.
Strata reports are required to be updated every 3 years. We can arrange to re-evaluate and prepare a new report for your Strata Corporation at each necessary interval. Our aim is to reduce the management and stress of the requirement for the Corporation.
We are fully insured with Errors and Omissions Insurance. Our team has experience with all types of buildings, envelopes and interiors. The Report we provide is a technical report as well as a budget. It involves the review of architectural and engineered drawings as well as the visual inspection of common elements. A trained eye can identify problems that may not be evident presently but that can manifest and should be included in the Report. Much of the future Reserve Fund expenditures will be due to building envelope (roofing, windows, exterior cladding, etc) and structural restoration (parking garages, balconies, sidewalks, retaining walls, utilities, etc). We stand behind our visual inspections and consider it their most valuable tool when procuring the information you need.