The purpose of depreciation report is to assist the owners with planning funding for future repair and maintenance costs. The Depreciation Report contains an inventory of the common property, anticipated maintenance, repair and replacement costs for common expenses projected over 30 years, and a financial forecasting section that contains funding models for the Contingency Reserve Fund.
Our services will include the following:
Review the pertinent technical, financial and legal records related to the buildings.
* Meetings with the representatives of the owners.
* Prepare an inventory and quantification of the building’s common elements and components, including interviews with key building personnel regarding known problems, repair history, and future maintenance or replacement plans.
* Perform visual inspection of the common elements to identify existing problems, estimation of quality and current condition, and general assessment of the life expectancy;
* Prepare an inventory and quantification of the building’s Reserve Items;
* Review the present condition of and need for repairs to the Reserve Items and evaluate their Expected Life, Actual Age, Effective Age and Remaining Life;
* Research and estimate the Replacement Cost for Reserve Items;
* Prepare a 30 year plan that outlines future needs to repair or replace Reserve Items including projecting the Future Replacement Cost for these items;
* Prepare financial forecasts over 30 years, detailing Reserve Fund Accumulation, future replacement costs, and reserve fund requirements, that contain at least three cash flow funding models for the Contingency Reserve Fund.
* A Depreciation Report update with site review at the required 3 year interval