Are There Owners in Your Strata Complex Getting a Free Ride?

The advice we offer to all the strata corporations we manage is the following;

If you are not collecting monies for future replacements/upgrades, here's what's happening. The current owners are allowing those owners who have lived in the complex and have sold in the interim to have a 'free ride' as they have sold and left not having contributed anything to these replacements/upgrades. The rest of the owners are on the hook for any current and future replacement/upgrades. Those who moved away didn't have to pay into any future maintenance fund.

Let's face it, everyone should pay their fair share while living under the shared roof. Owners living in a strata corporation should understand that when living in a strata corporation they are enjoying the benefit of shared walls and roofs and other components by comparison to a single family dwelling. 

Whether living in a single family home or a strata home, to retain and grow the value in one’s investment, it is necessary to maintain one’s property to the highest possible standard.  Of course, we understand everyone wants to pay the smallest monthly strata fee possible. However, "penny wise, pound foolish" is a common cliché which comes to mind. This means, saving a little now may sound good until something major happens. No one likes a cash call. This is why creating a special maintenance fund is so important.  
 

Therefore, owners should ensure they employ a “qualified person” (depending on the size and complexity of the strata corporation, this person does not need to be an engineer. There are insurance brokerages and other individuals that are capable of providing Depreciation Reports that will meet the requirements of the Regulations. Their pricing may be different as well.
 

Strata Property Regulations - BC Depreciation Report

Related Article:

Myths Surrounding the Dreaded Strata Depreciation Report

More Related Strata Governance Pages & Articles:
 

• Strata Governance & How We Can Help
   
• The Truth About Strata Depreciation Reports
• Are There People in Your Strata Complex Getting a Free Ride?
• Myths Surrounding the Dreaded Strata Depreciation Report
• Strata Governance and Compliance. Do you know the difference?
• Your Strata could be NON COMPLIANT. How do you know for sure?
• Is Your Strata properly insured? Many are not and don't know it!
• How to avoid Personal Liability as a Strata Council Member
• One of the most neglected & misunderstood areas of the Strata Property Act
• Have strata council's expenditures been approved? How do you know?