A budget planning tool that identifies the current status of a Reserve Fund and a Funding Plan to offset the anticipated expenditures for the major repairs and replacement of components, elements, or assets, for which a corporation or association is responsible.
OurCastle Depreciation Reports comply with applicable legislative requirements and adhere to the industry standards set by the Real Estate Institute of Canada.
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It depends on your province / state. In British Columbia, Stratas with 5 or more units must obtain a Depreciation Report and renew it at least every 5 years. In Alberta, Saskatchewan, and Manitoba, similar requirements apply for Condominiums under each province’s legislation, though the specifics and exemptions vary.
In British Columbia, the Strata Property Act and Strata Property Regulation require most strata corporations to obtain a Depreciation Report to properly plan for long-term maintenance, repairs, and replacement costs of their common property and common assets.
The cost of a depreciation report in BC varies depending on building size, complexity, age, and available documentation.
While fees can range widely, most strata corporations should expect a minimum of $5,000 plus for small or simple properties, with larger or more complex buildings reaching higher amounts.
The best way to get an accurate number is to request a proposal tailored to your building’s individual components, condition, and reserve fund needs.
Under the Strata Property Act, a strata corporation must update its depreciation report at least every five years. This five-year cycle ensures:
Lifecycle estimates and replacement costs remain accurate
The most recent depreciation report reflects current market conditions
The financial forecasting section and funding models remain realistic
The contingency reserve fund stays on track
Councils don’t indefinitely defer major capital planning
Many strata corporations choose to update more frequently, especially following major building renewals, large expenditures from the operating fund, or significant changes to common property.
Under BC strata regulations, a depreciation report must be prepared by a qualified person. This includes professionals with expertise in building systems, asset management, and long-term capital planning.
A Depreciation Report that fits your organizational goals and circumstances allows you to:
Our reputation is built on delivering tools that drive results. Informative meetings, detailed conversations, and collaborative planning are key to our method.
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