WHAT IS A DEPRECIATION REPORT?
Depreciation reports help strata corporations, including bare-land strata corporations, plan for the repair, maintenance and replacement of common property, limited common property, and common assets over a 30 year period. The report must contain a physical inventory of the common property and assets, anticipated maintenance, repair and replacement costs for common expenses projected over 30 years, and a financial forecasting section with at least three cash flow funding models.
WHY DO LENDERS REQUIRE DEPRECIATION REPORTS?
Depreciation reports officially show the lender any plans or need for repair, maintenance, and replacement in regards to the strata complex.
HOW CAN I OBTAIN A DEPRECIATION REPORT?
Depreciation reports can be obtained through the strata management company as they should be part of the strata documents.
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