Depreciation Reports for Small Stratas

The Strata Property Act says a strata must obtain from a qualified person "a depreciation report estimating the repair and replacement cost for major items in the strata corporation and the expected life of those items" (s.94(2)). The Strata Property Regulation sets out who is qualified, what goes in the report, and the dates (s.6.2 to s.6.23).

The report exists to plan the contingency reserve fund (CRF), the savings fund for costs that come less often than once a year, such as a new roof. After the first year, the yearly CRF contribution must be set "after consideration of the most recent depreciation report, if any" (Regulation s.6.1(1)), and it must still be at least 10% of the operating budget (s.6.1(2)). The budget and contingency fund page covers that rule.

A report also changes some votes. Spending from the CRF on work that the current report recommends needs only a majority vote at a general meeting, where other CRF spending needs a 3/4 vote (Act s.96). The strata must keep every depreciation report permanently, and attach the most recent one to each Form B it gives a buyer (Regulation s.4.1; Act s.59).

The exemption reads: the duty "does not apply in relation to a strata corporation if and for so long as there are fewer than 5 strata lots in the strata plan" (Regulation s.6.22). The count is the number of strata lots on the plan. A fourplex with a suite inside each unit still has 4 strata lots.

The words "for so long as" matter. The exemption follows the lot count, so it can start or end if lots are divided or combined under Part 15 of the Act. A 2 to 4 lot strata is also exempt from the electrical planning report (Regulation s.5.8). The rules by size page lists every rule that changes between 4 and 5 lots.

Until July 1, 2024, a strata could skip its depreciation report by passing a 3/4 vote at each AGM. B.C. Reg. 88/2024 and the repeal of the waiver in the Act ended that option on July 1, 2024. The same change set the 5-year cycle, the deadlines in the table above, and the exemption for fewer than 5 lots.

A second change took effect for reports obtained on or after July 1, 2025: the list of who may prepare one. B.C. Reg. 187/2025 added three titles to that list on October 27, 2025.

Some older pages, including one Province page dated July 11, 2024, still describe the yearly vote to waive the report. The Regulation in force today has no waiver. If you read about a deferral, check the date of the page.

Our blog covered these changes for fiveplex owners in depreciation reports and the 5-unit strata.

For a strata formed on or after July 1, 2027, the owner developer must pay into the CRF, toward the first depreciation report, the lesser of $5,000 plus $200 for each strata lot, or $30,000. The money is due no later than the date of the first AGM (Regulation s.6.23). For a strata formed before July 1, 2027, no such payment applies.

Read it in this order.

1. Executive summary. The short version: what the preparer found and the main numbers.
2. The 3 funding models. Each model is a plan to pay for 30 years of work. Compare what each one means for monthly fees, special levies and borrowing. Owners choose the plan; the report only shows the options.
3. Current CRF balance. The report must show the balance minus spending already approved. Compare it with the next 5 years of forecast costs.
4. Component list. Look for the items with the shortest remaining service life. Those set the first large costs.
5. Assumptions. Check the interest and inflation rates. Any change in either rate changes the 30-year total.
6. Owner items. The report must name the common property and limited common property that owners repair themselves. Check that it matches your bylaws.
7. The preparer. Check the qualification, the insurance and any relationship with the strata or a contractor.

Then use it. Council puts the CRF contribution in the next budget after considering the report, and owners vote on the budget by majority vote at the AGM (Act s.103). Work the report recommends can go to a majority vote from the CRF.

No official source publishes a price. The Province says reports "will range in price, depending on the size and complexity" of the strata. We give no figure, because we found none from a primary source. Get written quotes from more than one qualified preparer, and compare what each includes: site visit, number of funding models, and updates.

The cost of getting a report can come from the operating fund (Act s.92(a)), or from the CRF by a majority vote at a general meeting (s.96). For stratas formed on or after July 1, 2027, the owner developer's payment covers part or all of the first one.

This section is a practical step for a strata of 2 to 4 lots; the law does not require it. In May 2024 an owner asked a BC strata advice column whether small stratas can make their own list of shared items instead of paying for a depreciation report. An exempt strata needs no report at all, and it must still set a CRF contribution of at least 10% of the operating budget every year. A simple list of parts and dates helps owners decide whether 10% is enough.

Use the categories the Regulation gives for a full report (s.6.2(2)(b)), and record what your strata repairs. The developer must hand over warranties, manuals and the list of contractors at the first AGM (Act s.20(2)), which gives you most of the dates.