Bare Land Developments and Depreciation Reports: What You Need to Know

Why Bare Land Stratas Are Included in BC's 2024 Depreciation Report Mandate

Bare land strata developments are often misunderstood when it comes to shared asset responsibilities. Because the dwellings themselves are individually owned and maintained, it's easy to overlook the significant value and vulnerability of shared infrastructure.

Under the updated regulations effective July 1, 2024, all strata corporations with five or more lots, including bare land strata corporations, must now obtain and maintain a depreciation report on a five-year cycle. There are no exemptions for bare land status.

Common Shared Assets in Bare Land Strata Developments

While bare land strata lots may not share walls or roofs, they often share critical infrastructure and amenities. These must be accounted for in your depreciation planning:

• Private roads and internal driveways

• Common water and sewer lines (including private septic systems and wells)

• Stormwater drainage systems

• Electrical distribution infrastructure

• Clubhouses, recreational facilities, or mail kiosks

• Street lighting and signage

• Landscaping and irrigation systems

• Perimeter fencing or gates

These assets require funding for inspection, maintenance, and eventual replacement just like the components of a traditional building.

Unique Planning Challenges for Bare Land Stratas

1. Underground Infrastructure Complexity

   • Water lines, sewer, storm drainage, and electrical conduits may be buried, requiring specialized tools and expertise for condition assessment.

2. Access and Seasonal Issues

   • Septic fields or stormwater systems may be inaccessible during rainy or frozen conditions, complicating inspection timelines.

3. Ambiguous Boundaries with Municipal Services

   • Confusion often exists between what the municipality is responsible for versus what the strata must maintain (e.g., perimeter roads, culverts, hydrants).

4. Lack of Prior Reporting or Documentation

   • Many bare land stratas have never commissioned engineering assessments or tracked the lifecycle of their shared infrastructure.

What the Depreciation Report Must Include

A compliant depreciation report for a bare land strata must:

• Identify all common property infrastructure elements

• Assess the current condition of each component

• Estimate the expected remaining life and replacement cost

• Outline a funding plan through the contingency reserve fund (CRF)

Because of the infrastructure focus, your depreciation report provider must have both technical and financial planning expertise.

Choosing the Right Professional

For bare land strata corporations, selecting the right professional to prepare your depreciation report is critical—especially given the unique infrastructure and long-term planning challenges involved. While the legislation allows for various designations, not all are equally suited to handle the financial modeling and strategic planning required for effective reserve fund studies.

At Jackson & Associates Ltd., our reports are prepared by a professional who holds both the AACI (Accredited Appraiser Canadian Institute) and CRP (Certified Reserve Planner) designations. This dual expertise is rare in British Columbia and uniquely positions us to bridge the gap between valuation accuracy and comprehensive financial planning.

We offer:

• Accurate valuations of all common property infrastructure, regardless of whether structures exist

• Integrated reserve fund analysis and funding projections grounded in industry standards and financial best practices

• Lifecycle costing for shared infrastructure such as roads, septic systems, and stormwater drainage

• Practical, customized financial strategies based on each strata's risk tolerance, asset condition, and financial capacity

Whereas many providers focus narrowly on engineering or physical assessment, our approach prioritizes the financial planning and governance side of depreciation reporting. We empower strata councils and property managers to make informed, defensible decisions about how and when to fund infrastructure replacement—without guesswork or crisis-level assessments.

We’re not just here to check a compliance box. We provide actionable insights, budget-aligned strategies, and a clear roadmap to protect the long-term financial health of your strata.

If your strata corporation is unsure how to meet the new regulatory requirements—or how to pay for long-term infrastructure—contact us for a no-obligation consultation tailored to bare land challenges.

Case Study Example: Rural Septic & Road Infrastructure

We recently completed a depreciation report for an 8-lot bare land strata outside Courtenay. The only shared assets were a gravel road and a private septic system. However, the replacement costs—especially for the septic field—were significant. Without proactive planning, the strata would have faced either a sudden $60,000 special levy or major disruptions. Our report helped them plan reserves incrementally over a 10-year timeline.

Benefits of Proactive Depreciation Reporting

• Prevent costly special levies through early reserve planning

• Clarify ownership vs. municipal responsibilities

• Build transparency and trust with strata owners

• Ensure compliance with the 2024 legislative changes

• Improve property marketability with up-to-date planning

📋 Bare Land Strata Council Readiness Checklist

Use the checklist below to assess whether your strata is ready to comply with BC’s updated depreciation report requirements:

Final Thoughts: Be Ahead of the Curve

Bare land strata developments are no longer flying under the radar. The new provincial rules recognize that shared infrastructure—whether it's asphalt, pipe, or power—needs structured long-term planning just like any other property type.

If you're on a strata council or manage bare land properties, now is the time to:

• Inventory your shared assets

• Engage a qualified depreciation report provider

• Educate owners on the process and benefits

Let’s Talk

If your bare land strata needs help preparing for compliance or understanding your infrastructure risks, reach out. At Jackson & Associates Ltd., we provide clear, defensible, and easy-to-implement depreciation reports tailored to your specific needs.

📧 Contact us at dan@comoxvalleyappraisers.com or visit www.reservefund.ca to request a consultation.