Got a sample Depreciation Report / Reserve Fund Study (DR/RFS)? Or you’ve just received one for your property and want to know if it’s any good?
This guide shows you what matters in practice. This is not a summary of legislation. It’s a user checklist to help owners and property managers judge quality and usefulness. You may also download this checklist in a PDF here.
We group the essentials into three tiers:
- Basic – without these, the DR/RFS is (arguably) incomplete.
- Essential – these make the report actually usable for planning.
- Comprehensive – these elevate the report from “fine” to stewardship tool.
Basic (must-haves)
1) Inventory of Major Components
This is the core of any DR/RFS, typically presented as a table. It should list all significant property elements.
If obvious items are missing, the provider may have excluded components that extend just beyond the study horizon (e.g., cladding with 31 years remaining in a 30-year study). That creates a planning gap. A plan that ignores a major property component isn’t a plan.
- Watchout for “Inventory” tables that list only actions (e.g., “Replace burner in the Boiler”) with no explicit component list. Actions are useful, but you still need to see the underlying assets.
The Inventory Table should have the following basics:
- Estimated Current Cost per component/action (budgetary amount)
- Typical Useful Life
- Estimated Remaining Useful Life
2) Projected Reserve Expenditures Table
A table with each expenditure on its own line and years in columns.
Numbers should include or separately account for inflation and taxes.
3) Funding Model(s)
At least one cash-flow model; three+ is better. If legislation specifies model types/number, the report should meet or exceed that requirement.
Essential (to plan effectively)
The Inventory Table should have the following essentials:
- Quantity & Unit of Measurement
(e.g., 12,500 sq.ft. roof; 160 windows; 1 boiler) - Type of Action
Not every expenditure is a replacement. Note if it’s repair, allowance, or something else. - Typical Useful Life as a Range
A single “25 years” is tidy, but reality varies. A range (e.g., 20–30 years) helps owners plan.
4) Inventory Sub-Sections
No guessing what a line means. Each item should have at least a brief description in its own inventory sub-section.
5) Reserve Adequacy (%) / Benchmark Analysis
A percentage target is more dynamic than a raw dollar balance, which swings year by year. This is one of the best tools for setting reserve targets.
Comprehensive (what great reports include)
- Last Renewal / Major Action Year
Quick context for when a component was last replaced or significantly repaired. - Inventory Sub-Sections should include:
- Condition Rating (plain-language sense of urgency)
- Maintenance Recommendations (observed issues + practical fixes)
- Upgrade Considerations (low-hanging fruit that improves durability, safety, comfort, or energy use while you’re there)
- Photos (ideally more than one) to orient readers
6) Sensitivity Analysis of Funding Models
What happens if costs increase at a higher rate than anticipated? Stress-testing shows resilience of proposed funding models.
7) Graphs & Charts
Visual summaries are very helpful, especially for owners who won’t read spreadsheets.
When to Consider an Asset Management Plan (AMP)
If you need a planning exercise, custom prioritization, or a narrative that connects strategy, timing, and cash flow, an AMP builds on your DR/RFS to give you that flexibility.