How Does Depreciation Report Benefits The Lot Owners?
Depreciation report has now become legally mandatory for each strata corporation in the British Columbia province. They need to have a Depreciation Report by December 14, 2013. Whether it is a common property or common limited property, they need to have a reliable depreciation report for their property.
Whether it is a condo or a strata property, lot owners need to seek the professional assistance of professional appraisers to get a reliable and quality depreciation report. Strata corporations with five or more units need a depreciation property as per the new regulations in the property act.
But the real question that arises in our minds is why does one need a depreciation report or what makes it beneficial for the lot owners in the long run. Let us find out.
Proper planning and maintenance
With the help of a reliable and well-drafted depreciation report, the lot owners will have quality information about the value of their property. They can work towards maintaining the value of the property and also plan for future repairs. They will be much better prepared for future maintenance and system deterioration in the coming times.
Therefore, reactive response will be replaced with proper planning and execution. It has also been noted that fund collection at the time of a repair also cost much more than planned maintenance. It also results in improper planning for environmentally friendly maintenance of the strata properties.
Reduction in Strata Special Levy
The stress on the need of a well-informed depreciation report is being done in order to reduce strata special levies in future. In order to eliminate the concept of strata special levy from strata properties, a proper report on the depreciation of the value of the property is required. This helps the lot owners to prepare for the unexpected expenses much ahead of time to avoid any hassles in the end.
The report is also known as reserve fund study and gives a detailed account of the maintenance of the building and its present condition. It also helps to keep a track of the investments done in the upkeep of the property and also make future planning.
The depreciation report or reserve fund study (what it's called in other jurisdictions), provides strata owners with information about the condition of the building they invested in and help them be proactive and plan for future. Hence, it helps in preparing for long term maintenance of strata properties.
Benefit for Prospective Buyers
A prospective buyer gets a detailed information about a property, its past maintenance work and future needs of the building. The buyer can make informed decision and plan their investments in a better way.
Whether it is a condo or a strata property, lot owners need to seek the professional assistance of professional appraisers to get a reliable and quality depreciation report. Strata corporations with five or more units need a depreciation property as per the new regulations in the property act.
But the real question that arises in our minds is why does one need a depreciation report or what makes it beneficial for the lot owners in the long run. Let us find out.
Proper planning and maintenance
With the help of a reliable and well-drafted depreciation report, the lot owners will have quality information about the value of their property. They can work towards maintaining the value of the property and also plan for future repairs. They will be much better prepared for future maintenance and system deterioration in the coming times.
Therefore, reactive response will be replaced with proper planning and execution. It has also been noted that fund collection at the time of a repair also cost much more than planned maintenance. It also results in improper planning for environmentally friendly maintenance of the strata properties.
Reduction in Strata Special Levy
The stress on the need of a well-informed depreciation report is being done in order to reduce strata special levies in future. In order to eliminate the concept of strata special levy from strata properties, a proper report on the depreciation of the value of the property is required. This helps the lot owners to prepare for the unexpected expenses much ahead of time to avoid any hassles in the end.
The report is also known as reserve fund study and gives a detailed account of the maintenance of the building and its present condition. It also helps to keep a track of the investments done in the upkeep of the property and also make future planning.
The depreciation report or reserve fund study (what it's called in other jurisdictions), provides strata owners with information about the condition of the building they invested in and help them be proactive and plan for future. Hence, it helps in preparing for long term maintenance of strata properties.
Benefit for Prospective Buyers
A prospective buyer gets a detailed information about a property, its past maintenance work and future needs of the building. The buyer can make informed decision and plan their investments in a better way.
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