BC depreciation reports: A 2025 guide

It’s safe to say that the major systems and amenities of your strata will, at some point, require repair and replacement. The challenging part is determining when the repairs might be needed, and how much they might cost. Sound impossible? Well, not quite. Projections can be made so that you and your fellow council members have a good idea of what repair costs will look like in the future, enabling you to prepare for them now.

This tool is called a depreciation report, and it can provide a comprehensive analysis of a strata’s physical components and assets over time, guiding decisions on maintenance, repairs, and contingency reserve fund (CRF) contributions.

In this 2025 guide, we’ll break down BC depreciation reports, including their purpose, costs, and update requirements.
 

What is a depreciation report?

A depreciation report is a financial and physical assessment of a strata corporation’s common property and assets. It outlines the projected costs of maintaining and replacing major components over a 30-year period.

Strata corporations in BC use depreciation reports to plan ahead, minimize unexpected financial shortfalls, and allocate resources efficiently. The report includes an inventory of common property elements such as roofing, elevators, plumbing, and exterior cladding. It also provides funding models that indicate how much money should be allocated to the contingency reserve fund to cover future repairs and replacements.

Watch Now: Learn more in our webinar, "Important changes to the Contingency Reserve Fund (CRF) contributions"

A well-prepared depreciation report can help strata councils make informed decisions about budgeting and maintenance strategies, reducing the likelihood of unexpected levies for owners.

Learn more about strata budget planning in our webinar here. 
 

Are depreciation reports mandatory?

Under BC’s Strata Property Act, strata corporations with five or more strata lots are required to obtain a depreciation report every three years unless owners opt out through a three-quarters vote at an annual general meeting. The waiver is not indefinite — it must be passed each year. If the community does not pass that motion, the strata is expected to commission a depreciation report.

While some strata corporations choose to defer their depreciation report, this can have consequences. Financial institutions and potential buyers often look for these reports when assessing the financial health of a strata. Without an updated report, owners may face difficulties selling their units or obtaining favourable financing. Additionally, some insurance providers may require a depreciation report for compliance or risk assessment. Strata corporations that consistently waive depreciation reports may face higher insurance premiums due to the lack of long-term planning.

For many strata councils, the real value lies in reducing guesswork. Instead of being caught off guard by a sudden large capital repair, the community can trace the big repairs that lie ahead and make decisions collectively. Owners often appreciate the transparency a detailed depreciation report provides because it shows exactly where their contributions will eventually go. In practice, it also promotes open communication between residents, council members, and strata managers, who can then plan projects effectively.
 

Who prepares depreciation reports?

BC depreciation reports must be prepared by qualified professionals with expertise in building design, maintenance, or financial forecasting. The most common professionals engaged for this task include:

• Engineering firms specializing in building envelope assessments and structural evaluations.
   
• Certified reserve fund planners (CRPs) who analyze financial sustainability and long-term planning.
   
• Quantity surveyors experienced in construction cost estimating and capital planning.

These professionals conduct a thorough on-site inspection, review maintenance histories, and analyze financial records to develop a report tailored to the strata’s specific needs.
 

How often are depreciation reports updated?

BC depreciation reports must be updated every three years, unless the strata votes to waive the requirement. However, even when an update is not legally required, many strata corporations choose to refresh their reports more frequently if they’ve gone through substantial renovations or upgrades. For instance, if a strata community replaced the roof or revitalized a building’s exterior since the last report, it may prefer to commission an update to reflect the newly extended lifespan of those components. That way, owners have a more accurate snapshot of the property’s long-term costs.

Data in an older depreciation report may lose some of its predictive value as years go by. Over time, projections in older reports may become less reliable as actual conditions and costs evolve. Given the increasing cost of materials and labour, regular updates can help provide a clearer financial roadmap.
 

How much do depreciation reports cost strata communities?

The cost of obtaining a depreciation report varies based on several factors, including the size of the strata, the complexity of the strata’s infrastructure, and the qualifications of the consultant conducting the assessment.

For small strata communities of under 10 units, the cost of a depreciation report typically ranges between $3,000 and $6,000. Larger developments with extensive amenities and infrastructure may see costs ranging from $10,000 to $30,000.

While the upfront cost of a depreciation report may seem significant, it is a crucial investment that can prevent unexpected financial strain in the long run. Strata corporations that maintain up-to-date reports are better positioned to manage long-term maintenance expenses without imposing sudden levies on owners.
 

Planning for the future with your BC depreciation reports

A comprehensive depreciation report is a key component of a well-rounded strata management plan. An experienced strata management company like FirstService Residential can provide expert guidance to help you navigate this process:

• Budget alignment: The management team can help interpret the recommended funding models in the report and incorporate them into your annual or long-term budgets.
   
• Vendor coordination: Management professionals often have networks of trusted trades and contractors if repairs or inspections are recommended in the report.
   
• Communication with owners: An experienced management partner can help prepare meeting agendas, notices, or other communications that keep owners up to date on upcoming projects or strata fee changes.

For more than 30 years, the FirstService Residential British Columbia team has been providing innovative, full-service financial management for strata corporations. Our team of experts specializes in helping strata councils manage budgeting, compliance, and proactive maintenance strategies, so strata communities can remain financially secure and well-maintained. Whether your strata is preparing for a depreciation report, optimizing its contingency reserve fund, or planning capital improvements, we provide the resources and expertise needed to streamline the process.

Contact FirstService Residential today to learn how our experienced team can support your strata community.