Imagine buying a car that has no service manual or planned maintenance program. How would you ever know when you need change the oil or rotate the tires? For years, strata councils had little to work with when it came to maintaining their buildings and this led to the neglect of a lot of important hardware resulting in premature breakdown and replacement of building components, damage to other building components and wasted money. It also led to unexpected special levies that could financially cripple home owners.
Depreciation reports are like a service manual for buildings. Building engineers perform an audit of the building’s hardware and provide the current condition as well as the expected remaining life for things such as the roof, boilers, building exterior, windows and more. This is an incredibly powerful tool that strata councils can then use to prepare comprehensive maintenance plans and budgets that will maximize the life of hardware and reduce the long-term costs of ownership.
This is an important report that will help you make a better decision when it comes to deciding on your future home. Knowing about upcoming repairs will help you understand whether the building’s reserve fund will be adequate to cover future expenses or whether you can expect a levy in the near future.