Depreciation Reports

The Recap Group have expert and certified writers specializing in Depreciation Reports – Capital Reserve Planning documents for Strata Corporation’s in British Columbia.

“What’s a Depreciation Report?”

Great question! A Depreciation Report lists common property assets within the complex of a Strata Corporation, the projected lifespan and the estimated future repair or replacement cost over a 30-year time span.

“What is Included?”

The Depreciation Report will include an inventory of your common property and assets, an estimate of their remaining lifespan, and a projected cost for future repair and replacement. The report will also include 3 funding scenarios that shows suggestions on how to fund future maintenance and projects.
Examples include – Roof replacement, hot water tank replacement, interior and exterior painting, elevator refurbishment, garage door operator(s) and gate(s), patio deck replacement, and more.

“Why do I need one?”

We recommend all buildings should have a Depreciation Report! If your building wants to be pro-active and wants to plan in advance for a major expenditure, you absolutely should consider obtaining a Depreciation Report. Otherwise, you may delay a necessary repair which may result in additional and unnecessary costs.
The consequence of reactive repairs is that they generally cost 2-5 times more than corrections and repairs made in planned and scheduled environment. In addition, a Capital Plan creates a road map to adequate funding for building systems renewal when the time arrives.
In the province of British Columbia, Strata Corporations are required by law to prepare a Depreciation Report. More information can be obtained from the Strata Property Act of BC. The Strata Corporation is responsible for hiring a qualified person or firm to prepare the report..

“Things to Consider”

  • You want to know what your building should expect for major projects within the next 5-10 years

  • You need a list of the major assets for your strata complex

  • Your Strata Corporation will have a report on file for your current and future Strata Council to use and consider for budget planning

A Depreciation Report will address all these items, and more! The Depreciation Report will estimate what major items in your building will cost within the next 30 years. Major items life a roof replacement, painting project, hot water tank replacement, elevator refurbishment, potential lobby upgrade, etc.

“What happens after the Depreciation Report is completed?”

The Depreciation Report will be presented and provided to your Strata Council. It should be shared with all Strata lot owners, and should be reviewed regularly and updated as needed to ensure it remains accurate and relevant. The Strata Corporation may use the information in the report to plan and set aside funds for future maintenance and repairs.

“Does a Depreciation Report need to be updated?”

In BC, a Strata Corporation is required to update their Depreciation Report at least every 3 years. You do have the option to update the report more frequently if you wish.

“How can The Recap Group help?

The Recap Group have Certified Reserve Planners on staff and can provide you with a personalized Depreciation Report specific for your building. Our staff have years of experience with expertise in building construction and maintenance. We have conducted Capital Planning for hundreds of Strata Corporations. We provide:
  • Excellent clarity and targeted information for each individual Strata Corporation

  • Real world component cost figures

  • A summary video for owners to have a visual and audio explanation

  • An Executive Report called “The Recap” focusing on current component events.  

Contact us today for an estimate!