A depreciation report is British Columbia’s version of a reserve fund study: a long-range plan, usually covering 30 years, that estimates the cost of repairing and replacing a strata corporation’s common property and assets, and sets out how to fund that work. Since July 1, 2024, a depreciation report is mandatory for most BC strata corporations with five or more strata lots, and the old option to skip it by a three-quarter vote is gone. This guide explains what the report covers, what changed in 2024, when your strata’s deadline falls, and what a strata corporation can do when the report points to a funding gap.
Key takeaways
- A depreciation report is the BC equivalent of a reserve fund study. It projects about 30 years of major repair and replacement costs and informs how the strata funds its contingency reserve fund (CRF).
- As of July 1, 2024, depreciation reports are mandatory for strata corporations with five or more strata lots, every five years. The annual three-quarter vote to defer is no longer allowed.
- Deadlines depend on your region: July 1, 2026 for Metro Vancouver, the Fraser Valley, and the Capital Regional District (a deadline that has now passed), and July 1, 2027 for the rest of British Columbia.
- When a report reveals a funding gap, a strata corporation generally weighs increasing strata fees, a special levy, putting the work off, or financing through the corporation. Each has trade-offs.
What is a depreciation report?
A depreciation report is an independent, long-range financial plan for a strata corporation’s common property and assets, such as the roof, building envelope, elevators, parking structure, and mechanical systems. A qualified provider inspects the property, estimates the remaining useful life and replacement cost of each component, and projects those costs over roughly 30 years. The report then models how the strata’s contingency reserve fund can meet those costs over time.
It is the same kind of document that Ontario and Alberta call a reserve fund study. British Columbia’s own guidance notes that in other provinces, depreciation reports are referred to as reserve fund studies. The purpose is identical: replace guesswork with a funded plan for the major repairs every building eventually needs.
What changed in 2024?
For years, a BC strata corporation could defer a depreciation report by passing an annual three-quarter vote. That option has been removed. Effective July 1, 2024, a depreciation report is mandatory for strata corporations with five or more strata lots, and it must be updated every five years. The change is meant to make sure owners have a clear, current picture of what their building will cost to maintain, rather than discovering a shortfall only when a major repair arrives.
For strata corporations, the practical effect is simple: a depreciation report is no longer optional, and the question has shifted from whether to get one to how to fund what it recommends.
When does your strata need a depreciation report?
The deadline depends on your region and when the strata was formed. For Metro Vancouver, the Fraser Valley, and the Capital Regional District, the deadline was July 1, 2026. It has now passed, so a strata in those regions without a current report should treat commissioning one as immediate business. Stratas in the rest of the province have until July 1, 2027. The timeline below shows the key dates for existing strata corporations.
These dates apply to existing strata corporations that do not already have a current depreciation report. Newly formed strata corporations have their own timing: those formed between July 1, 2024 and June 30, 2027 generally need a report within two years of the first annual general meeting, and those formed on or after July 1, 2027 within 18 months. When in doubt, confirm your strata’s deadline with a qualified provider or your strata manager.
Who can prepare a depreciation report?
From July 1, 2025, British Columbia limits who may prepare a depreciation report to six designated groups of qualified professionals: professional engineers, architects and architectural technologists, applied science technologists and certified technicians, accredited appraisers, certified reserve planners, and quantity surveyors. Confirm that the provider you engage falls within one of those groups before commissioning the report.
What a depreciation report includes
- An inventory of the common property and assets the strata is responsible for.
- The estimated remaining useful life of each component.
- The projected cost to repair or replace each component over time.
- At least three funding models for the contingency reserve fund, projected over about 30 years.
What if the depreciation report reveals a funding gap?
A depreciation report often shows that the contingency reserve fund is not on track to cover an upcoming major project. When that happens, a strata corporation generally weighs four options.
| Option | What it means | Trade-off |
|---|---|---|
| Increase strata fees | Increase what owners contribute to the contingency reserve fund, to save now and complete the work in the future | Gradual, but may not raise enough in time for a near-term project |
| Special levy | A one-time charge to owners to cover the gap | Fast, but can be a large lump sum that some owners struggle to pay |
| Put the work off | Postpone the repair to a later year | Often increases the eventual cost and the risk of further damage |
| Finance through the corporation | The strata corporation borrows so the work can be completed, and typically repays through strata fees over time | Spreads the cost over time instead of one lump sum up front, with interest costs over the term |
There is no single right answer, and the corporation can combine options: use what’s in the contingency reserve fund first, then finance the rest. Financing is often the least understood, because the strata corporation borrows in its own name. With strata financing in BC, the loan is made to the corporation so the work can be completed, and it is typically repaid through strata fees over time instead of up front through a levy. Because the corporation is the borrower, the financing does not interfere with owners’ personal borrowing or mortgage arrangements. Whether it fits depends on the corporation, the project, and the report’s funding model. For the wider picture of borrowing as a strata corporation, see our condo and strata financing overview.
Frequently asked questions
Is a depreciation report mandatory in BC?
Yes. Since July 1, 2024, a depreciation report is mandatory for strata corporations with five or more strata lots. The previous option to defer it through an annual three-quarter vote has been removed.
How often does a BC strata need a depreciation report?
Every five years. The report must be updated on a five-year cycle. Existing strata corporations in Metro Vancouver, the Fraser Valley, and the Capital Regional District were required to have a current report by July 1, 2026 (a deadline that has now passed); stratas in the rest of British Columbia have until July 1, 2027.
What is the difference between a depreciation report and a reserve fund study?
They are the same kind of document under different names. British Columbia uses depreciation report, while Ontario and Alberta use reserve fund study. Each projects long-range repair and replacement costs and recommends how to fund them.
Who pays for a depreciation report?
The strata corporation pays for the report. The cost varies with the size and complexity of the property.
Can a strata corporation borrow to fund major repairs or its contingency reserve fund?
Yes. A strata corporation can borrow in its own name and typically repays through strata fees. Under section 111 of the BC Strata Property Act, borrowing needs a 3/4 vote of owners at an annual or special general meeting, usually after owners have received a written information package and had a chance to ask questions at an information meeting. This lets the strata complete the work without a single large special levy on owners. The strata corporation is the borrower, so there are no personal guarantees or personal credit checks on individual owners. Speak with a specialist to see whether it suits your corporation’s situation.
Talk to a strata financing specialist
If your depreciation report points to a funding gap and a major project is coming, we can help your strata understand its options. Condominium Lending Group works only with condominium and strata corporations across Canada, and has arranged more than $500 million in financing for over 100 corporations. Use our contact form to tell us about your project, explore reserve fund financing, or call 289-470-5513 to speak with a specialist. There is no obligation.
About the author
Kelly McFadyen leads Condominium Lending Group’s work across Western Canada, with more than 15 years in the sector. She currently serves on the CCI Vancouver board, was previously a board member of PAMA, and regularly speaks at CCI chapter events, BUILDEX Vancouver and PAMA. She works with strata councils and strata managers in British Columbia on financing major repairs and contingency reserve fund shortfalls.
