Strata Reports: The Skills and Duties of the Reporter
So it is time for your strata to get a depreciation report done. You have decided not to attempt to do it on your own, but instead have a qualified reporter do it for you. How do you go about finding someone who is qualified to do the report? What are the skills that are required of an agency that is preparing the report, and what are they required to do during and after the report?
Duties of a Qualified Reporter
One of the first duties of the reporter when preparing the report is to disclose everything about them and their relationship with the strata corporation. These items include:
- Relationship with the strata corporation
- Full list of their qualifications
- Type and amount of errors and omissions insurance
- Full description of the any applicable policies
Once this has been fully disclosed there are additional duties that are required of the reporter. The reporter must provide a complete list of the assets of the strata corporation. They must also list the common property and any limited common property that is the responsibility of the strata corporation to maintain and repair.
The inventory must then be evaluated. The reporter will go over each asset in person and review the asset based upon the following criteria:
- How long the asset will last over a thirty year period
- How much annual maintenance the asset will require
- An evaluation of the current state of the asset
- Cost estimate for the life of the asset and the methodology used in order to estimate those costs
- Detailed report on the contingency fund
- Budgetary plans for the contingency funds for the next 30 year
The Skills Behind the Report
In order to be able to create a report competently, the reporter will need to have a skill set that will allow them to accurately perform the duties that were listed above. Things you should be looking for in the person who will be doing the report are:
- Skills or knowledge in working with buildings, including:
- Building systems
- Building codes
- Building technologies, old and new
- Product interactions and compatibilities
- Experience and skills in conducting building inspections
- Skill in reading and interpreting technical drawings
A reporter must also be versed in strata corporations. They need to know how a strata corporation operates and how they are going to execute their responsibilities. Strata corporations have unique responsibilities when it comes to repairing and replacing components, so the report preparer must also have an understanding of these duties and how they must carry them out.
Finally, the reporter must be able to do financial projections over the period of the report, which in this case is thirty years.
Reserve Advisors are a qualified report preparer. For questions or to start a report, contact us today!