Depreciation Reports for Stratas in BC: Your New Mandatory Requirement

# Depreciation Reports for Stratas in BC: Your New Mandatory Requirement

Why Your Report Is Now Mandatory

British Columbia has fundamentally changed how strata corporations must approach long-term financial planning. Under the updated Strata Property Act, depreciation reports are no longer optional—they are a legal requirement that every strata with five or more units must maintain on a current basis.

**The key change:** Strata corporations can no longer waive the requirement for a depreciation report through a three-quarter vote. This represents a significant shift in regulatory oversight, reflecting the government's commitment to protecting strata owners and ensuring buildings are properly maintained and funded.

**Your deadlines depend on your region:**

• **Metro Vancouver, Fraser Valley, and Capital Region:** July 1, 2026
• **All other regions in British Columbia:** 2027

Once completed, your depreciation report must be updated every five years. This ongoing requirement ensures that your strata's financial planning remains aligned with the actual condition and lifecycle costs of your building components.

Missing these deadlines carries serious consequences—from legal liability and disclosure issues when selling units to financing complications and increased insurance premiums. The time to act is now.

What We Deliver in Your Depreciation Report

A professional depreciation report is far more than a checkbox for compliance. It is a strategic financial planning document that gives your strata council and owners a clear picture of your building's future and the funding required to maintain it responsibly.

**30-Year Planning Horizon:** We analyze the remaining useful life of all major building components and project replacement and repair costs across a minimum 30-year period. This long-term view allows your strata to plan capital expenditures strategically, avoiding surprise assessments and sudden spikes in strata fees.

**Detailed Building Component Inventory:** Your report includes a comprehensive inventory of all significant building systems, including structure, building envelope, roofing, mechanical systems, electrical systems, plumbing, parking structures, elevators, HVAC systems, and common area finishes.

**Lifecycle Costs and Projections:** We provide detailed cost estimates for each component, presented in current dollars with projections adjusted for inflation. This allows your council to understand not only what needs to be done, but when and at what cost.

**Contingency Reserve Fund (CRF) Funding Plans:** We present multiple scenarios for annual contributions, showing the impact on strata fees and the reserve fund balance over time. This allows your council to make informed decisions about funding levels that balance affordability with financial responsibility.

**Clear Executive Summary:** Every report includes a clear, accessible executive summary that explains the findings, highlights priority items, and outlines the recommended funding approach in plain language.

Compliance with BC's New Requirements

Maben Consulting ensures that every depreciation report meets the current regulatory requirements set out by the Province of British Columbia and supported by industry organizations including the Condominium Home Owners Association (CHOA) and the BC Financial Services Authority (BCFSA).

Our reports are prepared and/or supervised by professional engineers and building science specialists. This professional oversight is a key requirement for depreciation reports completed between 2025 and 2027, and it ensures that your report is based on rigorous technical analysis rather than generic assumptions.

Maben maintains active relationships with government agencies, industry organizations, and professional bodies to stay informed of any changes to requirements or best practices. When new guidance is issued, we incorporate it into our work, ensuring your report remains compliant and current.

How the Process Works

Completing a depreciation report is a collaborative process. We don't simply send inspectors to your building and return with a document—we work with your strata council to understand your priorities, answer questions, and ensure the final report serves your long-term planning needs.

**Step 1: Document Review** - We review your strata's existing records, including building plans, previous inspection reports, maintenance records, and any prior depreciation or condition assessments.

**Step 2: On-Site Inspection** - Our team conducts a thorough on-site inspection of all common property areas, including structural elements, mechanical and electrical systems, roofing, exterior envelope, parking areas, and other major components.

**Step 3: Cost and Lifecycle Modeling** - Using industry-standard cost databases and our experience with similar buildings, we develop detailed cost estimates and lifecycle projections for each component.

**Step 4: Council Workshop** - Before finalizing the report, we conduct a workshop with your strata council to present preliminary findings, answer questions, and gather feedback.

**Step 5: Report Delivery** - We deliver a comprehensive, professionally formatted report that includes detailed component analysis, cost projections, funding scenarios, and an accessible executive summary.

**Step 6: Q&A Session** - After delivery, we're available to answer questions from your council and, if desired, to present findings to the broader strata membership.

Why Maben Consulting

Maben Consulting brings deep expertise in building science, strata management, and BC regulatory requirements. We've completed depreciation reports for dozens of strata corporations across British Columbia, and we understand the unique challenges and opportunities that each building presents.

Maben doesn't operate in silos. If your strata is also pursuing an Electrical Planning Report (EPR), EV-Ready plan, energy modeling study, or building condition assessment, we integrate these services seamlessly. Our team shares findings across disciplines, ensuring that your building assessments are comprehensive, consistent, and mutually reinforcing.

We view our role as a partner in your strata's long-term planning. We don't simply deliver a document and disappear. We're available to explain findings, discuss implications, and support your council's decision-making process. Your success—and your building's long-term health—is our success.

With Maben, you can be confident that your depreciation report meets all current regulatory requirements and reflects best practices in building assessment and financial planning. We monitor regulatory changes and industry guidance, so your report remains current and compliant.

Next Steps

If your strata has not yet completed a depreciation report, or if your existing report is more than five years old, now is the time to act. The regional deadlines are approaching, and early action allows you to plan strategically rather than scramble to meet a deadline.

Ready to get started? Send us a message to discuss your building's needs, timeline, and budget. We'll provide a no-obligation consultation and a clear proposal for completing your depreciation report.

Your building's future—and your strata owners' financial security—depends on planning today. Let Maben help you get it right.