Physical Health: Maintenance & Depreciation Reports
What is a Depreciation Report?
Think of it like a comprehensive health check-up for your building.
Professional Assessment
Identifies all major components of your common property including roofs, elevators, plumbing, and building structure.
Lifespan Projection
Estimates when components will need repair or replacement over the next 30 years.
Financial Planning
Provides a roadmap for how the strata can save money over time to pay for future expenses.
Legal Requirement
Obtaining and using a depreciation report is not just a best practice—it's a legal requirement under the Strata Property Act. It's one of the most critical tools for ensuring long-term financial health and protecting property values.
Essential Planning Tools
Annual Budget Planning
Develop comprehensive budgets that account for operating expenses, reserve fund contributions, and planned maintenance.
- Operating expenses forecast
- Reserve fund contributions
- Special assessment planning
- Emergency fund allocation
Preventive Maintenance
Establish regular maintenance schedules to extend the life of building components and avoid costly emergency repairs.
- HVAC system maintenance
- Roof and exterior inspections
- Plumbing and electrical checks
- Common area upkeep
Reserve Fund Management
Maintain adequate reserves for major repairs and replacements based on your depreciation report recommendations.
- Reserve study analysis
- Investment strategies
- Contribution rate planning
- Spending prioritization
Capital Improvement Planning
Plan for major improvements that enhance property value and community livability.
- Building envelope upgrades
- Energy efficiency improvements
- Amenity enhancements
- Accessibility modifications
Financial Planning Best Practices
Regular Financial Reviews
Conduct monthly financial reviews and annual budget assessments to stay on track with your community's financial goals.
Professional Financial Advice
Work with qualified accountants and financial advisors who understand strata corporation requirements and regulations.
Transparent Communication
Keep all owners informed about financial decisions, upcoming assessments, and long-term planning initiatives.
Regular Depreciation Report Updates
Update your depreciation report every few years to reflect changes in building conditions and market costs.