Strata management and maintenance in BC is about to improve
In the meantime, buyer due diligence will be more challenging
By December 13, 2013 every strata condominium and townhouse complex of 5 units or more must either obtain a Depreciation Report or pass a ¾ vote to defer obtaining the report.
Depreciation reports are used to establish long term planning for common property and common assets to determine:
1) What assets a complex owns ( an inventory )
2) The asset condition ( evaluation )
3) When things need to be replaced ( the anticipated maintenance, repair and replacement )
4) How much money a complex currently has (contingency reserve report )
5) What it is likely to cost for future replacement (a description of the factors and assumptions in projecting costs)
6) How a complex is going to pay for the costs ( the cash flow models projecting 30 year replacement periods )
Depreciation Reports will not only make it easier for stratas to maintain their properties and investment values but will also make it easier for buyers to ascertain how well maintained and funded stratas are and how likely future Special Levies/Assessments or strata fee increases will be.
In many complexes, monthly strata fees will increase.
Stratas will need professional input to carefully plan how to fund their Depreciation Report findings without damaging values by imposing exorbitant monthly fees or large future Special Levies
While we help house buyers and sellers too, a large part of our real estate practice is helping buyers investigate and purchase good condominium and townhouse properties.
If you are thinking about a strata purchase this year, call to arrange a confidential, no-obligation meeting with Rick Couvelier.
For those wishing to sell a strata property, we are considered experts at that also.
- Office: 250-477-0921
- E-Mail: firstname.lastname@example.org
- Pager: 250-384-8124
Pemberton Holmes Ltd.
#150-805 Cloverdale Ave