What is a depreciation report?

Depreciation reports serve as a comprehensive planning tool that identifies the common property and assets of the strata, including any parts of a strata lot the corporation is responsible for under its bylaws. These reports outline projected maintenance, repair and replacement costs over a minimum of a 30-year period to support long-term financial planning.

The Strata Property Act (SPA) regulations set the requirements for depreciation reports, including onsite visual inspections, financial forecasting with at least three funding models, qualifications for preparers and reporting timelines.

Changes to depreciation report requirements

New legislation amending depreciation report requirements aims to close the loophole that previously allowed strata corporations to indefinitely defer these reports. The changes will provide strata owners with greater certainty and consistency in the planning, repair and maintenance of common property. They also aim to enhance the quality of mandatory depreciation reports, ensuring that strata corporations proactively plan for their long-term maintenance needs.

Effective July 1, 2024:

The Province of British Columbia has implemented multiple changes to depreciation report requirements:

  • All strata corporations with five or more lots must obtain a depreciation report.
  • Strata corporations can no longer waive this requirement by an annual ¾ vote.
  • The renewal period for updating depreciation reports has been extended from three to five years.
  • These changes align British Columbia more closely with other provinces, including Alberta and Ontario. 

Effective July 1, 2025:

  • Previously, SPA’s regulations were vague, stating the strata corporation must obtain a depreciation report from a “qualified person” but omitting to list which groups of professionals would fall under this category.
  • Strata corporations must obtain depreciation reports from one of six designated professional groups. As of October 27, 2025, the list of designated professions who can provide a depreciation report was modestly expanded to include: professional licensees engineers; architectural technologists; and certified technicians. Engineers, architects, applied science technologists, accredited appraisers, certified reserve planners, and quantity surveyors remain qualified to provide depreciation reports.

Effective July 1, 2027:

  • Owner-developers must provide funding for the first depreciation report for new strata corporations with five or more lots. Owner-developers will be required to contribute a minimum of $5,000, plus $200 per strata lot, up to a maximum of $30,000.

Transition period for existing strata corporations:

Strata corporations without a depreciation report, or with a report dated before December 31, 2020, must comply by:

  • July 1, 2026: If located in Metro Vancouver, the Fraser Valley or the Capital Regional District (excluding certain islands).
  • July 1, 2027: If located in other areas of British Columbia.

Implications for new strata corporations:

  • Strata corporations formed between July 1, 2024, and June 30, 2027, must obtain depreciation reports within two years of the first annual general meeting and every five years thereafter.
  • Strata corporations formed on or after July 1, 2027, must obtain depreciation reports within 18 months of the first annual general meeting and every five years thereafter.

How does the strata corporation pay for the report?

There have been no changes regarding payment. Under SPA s. 92 and 96, the cost to obtain or update a depreciation report can be paid from either the operating fund or the contingency reserve fund (CRF).

How long will it take to complete a depreciation report?

The time required to complete a depreciation report depends on the size, age, available documentation and complexity of the strata’s common property and assets, including any strata lot components the corporation must maintain under its bylaws.

TIP: “It is important that the strata corporation negotiate the time frame for completion before work begins and ensure protocols are in place if the time frame needs to be adjusted.” — Condominium Home Owners Association of BC

Financial forecasting section of the depreciation report

As per Strata Property Regulation 6.2, a depreciation report must have certain content, including a financial forecasting section to help the strata corporation and owners plan for the repair and maintenance of common property and assets.

For more information on the depreciation report’s financial forecasting section, including three cash-flow funding models, visit the strata housing section of B.C.’s government website.

Note: The three cash-flow funding models help strata corporations understand how different funding levels affect reserve balances and the potential need for special levies. Funding decisions for the contingency reserve fund are made annually as part of the budget approval process.

How do we pay for maintenance and repairs recommended in a depreciation report?

The ways strata corporations fund maintenance and repairs remain unchanged; they may use operating funds, special levy or the contingency reserve fund with parameters. Please refer to CHOA Bulletin for more information

Suggestions made by CHOA:

  • Once the report is received by the council, it is up to the council to review it carefully for accuracy, which includes all common property, common assets and parts of strata lots that are the responsibility of the strata corporation to maintain, repair and renew.
  • It is important that owners are provided with a copy of the report, and the depreciation planner delivers the report to owners at an information meeting. This helps ensure that owners are equipped to make more informed financial and operational decisions.
  • The depreciation report could be incorporated into the strata council operating manual and be attached to annual notice packages for each annual general meeting.

The depreciation report provides the strata corporation with a clear understanding of its financial and operational needs in the years ahead. It supports effective planning for both annual and long-term maintenance, repairs and renewals, while outlining current and future financial obligations.

Sources:

Government of British Columbia, “New regulations help close loopholes, protect strata owners,” accessed June 3, 2025.
CHOA of BC, “What’s Happening,” accessed June 3, 2025.
boughtonlaw.com, “Key Changes to the Depreciation Report Requirements,” June 24, 2024.
VISOA, “BC Stratas Now Required to Obtain Depreciation Reports,” April 22, 2024.
Government of British Columbia, “Strata depreciation report requirements,” September 9, 2024.