DEPRECIATION REPORT ANALYSIS CONCLUSION Strata property owners, property managers, reserve planners and building envelope consultants should be able to use the above information to compare the health of their CRFs’ finances to other properties of similar type, age and population density. The good news is that there is significant evidence that strata properties are generally saving and likely spending more on repairs and renewals. From a building envelope perspective, this will be more prevalent, if it isn’t already, with middle aged, small- to-medium-size townhouse properties. Younger, larger high-rise properties tend to have the lowest special levies and cumula- tive special levy costs; however, they do not tend to contribute the most to their CRFs. So, you don’t need to necessarily be afraid of investing into strata corporations that are prone to having more special levies and increased special levy costs because they tend to contribute more to their CRFs, and if so, will likely spend more on asset renewals, which may end up being a better investment in the long run. TABLE 13: AVERAGE PERCENTAGE OF BUILDING ENVELOPE (BE) RENEWAL COSTS BASED ON PROPERTY TYPE, AGE AND POPULATION DENSITY. The building envelope is the largest category/ percentage of renewal costs, generally ranging at an average of 70 per cent to 78 per cent. Factor/Parameter Average % of Costs That Is BE Type low-rise 61 mid-rise 55 high-rise 53 townhouses 77 Age 0 to 10 years old 58 11 to 20 years old 60 21 to 30 years old 67 30+ years old 63 Units 0 to 25 units 66 26 to 50 units 63 51 to 75 units 64 76 to 100 units 70 100 to 199 units 59 200+ units 51 Initial study: The highest amount of cumulative special levy costs is most prevalent in townhouses, properties 21 to 30 years old, and those with 76 to 100 units. Followup study: Validated. What’s on the outside does count. manifesthomes.ca | construction management 604-726-2013 16 BCBEC ELEMENTS A BCBEC PUBLICATION