Reserve Fund Study Coming to British Columbia
Property statistic of British Columbia advises about 27 thousands Strata Corporations in the Province. Stratas are different in size and buildings structures. All they vary in location, age, type and amount of amenities, maintenance obligations and history of care. Careful planning for future repairs and replacements is not only in the best physical and fiscal interests of the Strata Corporation, it will be soon required by Strata Property Act in British Columbia.
Maintaining a realistic reserve fund not only will meet legal, fiduciary and professional requirements, it also will minimize the need for special assessments and enhances resale values. Every Strata Corporation requires a different amount of cash in reserves to complete repair or replacement projects on schedule without special assessments or loans.
How Strata can properly determine and compile adequate reserves to fund necessary repair and replacement costs? How Strata can determine the expected life of major items of Strata’s assets? How Strata can plan a renewal and building’s components and systems replacement. Only by conducting the Reserve Fund Study (Depreciation Report).
