Which type of depreciation is most often corrected through physical improvements to a property?

Physical deterioration is the type of depreciation that most often gets addressed through physical improvements to a property. This type of depreciation refers to the wear and tear or loss of value due to the physical condition of the building or property over time. Factors contributing to physical deterioration may include age, weathering, poor maintenance, or damage from various sources.

When property owners undertake improvement projects such as repairs, renovations, or structural enhancements, they are directly aiming to correct physical deterioration. These improvements can restore the property’s original condition or even enhance its value beyond its previous state, effectively counteracting the effects of physical deterioration.

The other types of depreciation mentioned in the options focus more on external factors or inherent design issues. Functional obsolescence deals with inefficiencies or inadequacies in a property’s design or utility, which typically require redesign or reconfiguration rather than just physical repairs. External obsolescence refers to depreciation caused by external factors affecting property value, such as economic downturns or changes in the neighborhood, which often do not have a physical correction. Economic obsolescence affects property value due to broader economic conditions and is usually not rectifiable through physical improvements to the property itself. Thus, the focus on improving physical deterioration through repairs makes that choice the most appropriate in this