Depreciation Report for a Strata
A Depreciation Report is a mandatory planning tool that identifies the common property, common assets, and those parts of a strata lot that the strata corporation by bylaw must repair and maintain.
The Depreciation Report will address:
- What assets a strata corporation owns (an inventory).
- The assets conditions (evaluation).
- When assets are anticipated to need attention (the anticipated maintenance and repair).
- How much money the strata corporation currently has (CRF contingency reserve fund).
- What it is likely to cost for future repair and maintenance (a description of the factors and assumptions in projecting costs).
- How the strata corporation can pay for the anticipated costs (three cash-flow funding models projecting 30 year replacement periods).
(Publication date: April 22, 2024 Click to open government public release)
Under B.C.’s Strata Property Act and Regulations, all strata corporations with five or more strata lots must obtain Depreciation Report. Strata corporations may no longer defer getting a Depreciation Report by holding an annual 3/4 vote. Strata corporations will have time to meet this requirement.
The Province of BC has new regulations that identify 6 designated professions that are qualified to produce Depreciation Reports effective as of July 1, 2025. Included in those designations are accredited appraisers and certified reserve planners. Guardian Insurance Appraisals Inc. is pleased to have qualified professionals that hold AACI’s and/or CRP designations with standards accepted by the Appraisal Institute of Canada (AIC) and Real Estate Institute of Canada (REIC).