In British Columbia, a depreciation report is the long-range planning document that helps a strata corporation understand what common property and common assets it has, when major repairs and replacements are likely to occur, what they may cost, and how the contingency reserve fund could be funded over time. BC requirements include a 30-year outlook and at least three cash-flow funding models.

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Why depreciation reports matter

Depreciation reports reduce surprise. They turn building aging and infrastructure risk into a plan that owners can discuss, budget for, and update. They also support informed decisions about timing, project scope, and funding options, including strata fee increases, special levies, or borrowing scenarios.

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What a BC depreciation report includes

A compliant BC depreciation report generally includes:

1. On-site visual review and asset inventory
   A physical inventory and evaluation of applicable common property and common assets.

2. 30-year repair and replacement forecast
   A projection of anticipated maintenance, repair, and replacement costs for at least 30 years, including key assumptions like inflation and interest rates.

3. At least three cash-flow funding models
   Funding models over 30 years for the contingency reserve fund. These can include combinations of reserve fund contributions, special levies, borrowing, and interest earned on invested funds.

4. Clear assumptions and scope limits
   What is included, what is excluded, and the basis of cost estimates and timing.

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Depreciation report frequency in BC

BC’s depreciation report rules were updated effective July 1, 2024. The changes include removing the ability to defer by annual vote, and moving to a five-year cycle for strata corporations with five or more lots. There are also changes related to required qualifications for depreciation report providers, with implementation timelines in the regulation framework.

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Our approach

We focus on defensible costing and clear decision support.

• We conduct a practical site review and component inventory.

• We build a 30-year plan tied to observable condition, expected service life, and realistic replacement timing.

• We provide funding models that help councils understand tradeoffs rather than pushing a single outcome.

• We write in plain language so owners can understand what drives cost and risk. ​

 

What we need from you

If available, these documents improve accuracy and reduce uncertainty:

• Depreciation report or engineering history, prior studies, and project records

• Strata plan, unit entitlement schedule, and bylaws related to maintenance responsibility

• Building drawings and specifications if available

• Recent contractor quotes, invoices, warranties, and maintenance logs

• Insurance claims history related to common property, if relevant to scope

If you do not have everything, that is normal. We work with what exists and document assumptions.

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Deliverables you can actually use

• Executive summary for council and ownership communication

• Component inventory and long-range repair and replacement plan

• 30-year cash-flow models and clear funding discussion

• Key risks and near-term priorities

• A report structured for decision-making, budgeting, and updating​

 

Service area

We complete depreciation reports across Vancouver Island and the Sunshine Coast, including Courtenay, Comox, Campbell River, Nanaimo, Port Alberni, and surrounding communities.

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If you are planning a depreciation report or update, contact us for a scope call. We will confirm the property type, complexity factors, and what documentation will materially improve the result.

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FAQ 

What is the difference between a depreciation report and a reserve fund study in BC?
In BC, “depreciation report” is the common term used in strata legislation and guidance. Many owners also use “reserve fund study” to describe the same concept. Both refer to a long-range plan for common property and common assets, with a 30-year outlook and funding models.  

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What funding options can be shown in the cash-flow models?
Funding models can include combinations of contingency reserve fund contributions, special levies, borrowing, and interest earned on invested funds.

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How often does a strata need a depreciation report in BC?
BC’s framework includes a five-year cycle for strata corporations with five or more lots, and removed the deferral-by-vote approach. Always confirm your specific timelines and applicability based on your strata’s circumstances and the current provincial guidance.

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Does a depreciation report guarantee there will be no special levies?
No. It is a planning tool. It helps owners see upcoming needs and funding tradeoffs earlier, but actual outcomes depend on maintenance decisions, inflation, scope changes, and unexpected failures.

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How long does it take to complete a depreciation report?
Timeframes vary by size, documentation quality, and complexity. CHOA notes that complexity and available documentation affect timing.

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Information and Links:

Province of BC - Depreciation Reports

Condominium Home Owners of British Columbia (CHOA)

Vancouver Island Strata Owners Association  (VISOA)

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