New legislation requiring all strata councils to prepare reserve fund reports by licensed reserve fund analysts is well in effect.
What are reserve fund reports?
Reserve fund reports, also known as contingency fund reports, are the 30 year reports planning the maintenance and renewal costs for a strata complex.
What are the reserve fund reports used for?
Again, legislation requires strata councils to prepare 30 year financial planning based on the results of those reports. The impact of good reports and bad reserve fund reports is now very obvious.
The legislation clearly outlines the details of the reports and the financial planning requirements. All of which must be made available to the public, and obviously to the owners of each property inside a strata complex.
What impact will this have on my strata property?
Good reports and good financial planning will become evident over time. This, in effect, will strengthen the value of each property in the strata complex. The opposite can be said about those strata councils that have poor financial planning and poor contingency reports.
Reserve fund reports must be updated every 3 years to ensure the foundation of the strata council's financial planning is sound. Those strata councils with large discrepancies in their reports will have to adjust their financial planning to suit.
Again, market influences will come into play. A strata council that is consistently changing their financial planning will affect the value of properties in the strata complex. The logic here is simple. If a strata council demonstrates solid financial planning and solid reports that allow for good strata complex maintenance and management, the properties inside that complex will be more attractive to buyers.
Need more information and have questions? Contact C4U Inspections today
*Lloyd doesn't break the rules for anyone and as a leading chief home inspector in BC, that means he follows industry requirements, government regulations and licensing codes of conduct to the letter. Unbiased, ethical and professional home inspection and building consulation services.
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