If you own a condo in British Columbia, your strata corporation is likely now on a mandatory five-year depreciation report cycle. That is not a suggestion. It is a legal requirement under updates to the Strata Property Act, with very few corporations being exempt.
With major deadlines in 2026 and 2027, many strata councils are just starting to realize how tight the timelines really are. Michael LaPorte of Clarity Reserve Solutions, operating in BC as NLD Consulting, highlighted one key message: if your strata has not started the process, now is the time.
For homeowners, this matters a lot. A depreciation report is not just a technical document. It is a financial roadmap that directly affects your monthly strata fees, your exposure to special levies, and the long termvalue of your property.
The New Rules: No More Deferrals
Under changes to the Strata Property Act and its regulations, all strata corporations in BC with five or more strata lots must obtain a depreciation report every five years.
In the past, stratas could defer getting a report with a three quarter vote each year. That option is gone. Every eligible strata must now stay on a recurring five-year cycle.
If your strata has not obtained a depreciation report since December 31, 2020, you are on a firm timeline. Stratas in Metro Vancouver, the Fraser Valley, and the Capital Regional District must have a finalized report by July 1, 2026. The rest of the province has until July 1, 2027.
And here is the important detail. “Obtain” means a signed, finalized report. Not a draft. Not a consultant who has been hired but has not completed the work. Councils need to build in time for proposals, site inspections, data collection, modeling, and review.
Waiting until the last minute can create a real problem.
Why Demand for Depreciation Reports Is Rising
Since the regulation changes, proposal requests have surged. With deferrals no longer available, every proposal issued is likely to turn into a real project.
The challenge is capacity. There are only a limited number of qualified professionals in BC who meet the new regulatory standards. At the same time, there are tens of thousands of strata corporations across the province.
That imbalance means timing matters. Stratas that wait for a spring AGM to “get around to it” may find themselves competing for limited availability, particularly in regions facing the 2026 deadline.
For homeowners, this can translate into rushed reports, limited options, or added stress for councils trying to meet statutory requirements.
What a Depreciation Report Actually Does
There is a common misconception that a depreciation report is simply a list of building components with dates attached. It is much more than that.
A BC strata depreciation report provides a 30-year forecast of major repair and replacement costs for common property and common assets. That includes items like roofs, plumbing systems, balconies, elevators, and building envelopes.
The consultant conducts a detailed visual review of the building, evaluates expected service lives, estimates replacement costs, and then develops at least three funding models for the contingency reserve fund.
This is where the real value lies. The report is not just about identifying when projects will occur. It is about showing how those projects can be funded.
Each variable carries uncertainty. No one can predict the exact year a roof will need replacement or what materials will cost 20 years from now. However, by modeling dozens of components and aiming to balance high and low assumptions, the overall financial picture becomes statistically stronger.
The result is a clearer understanding of how today’s contribution levels affect tomorrow’s levy risk.
Why It Matters to Condo Owners
For individual homeowners, the impact of a depreciation report is both practical and financial.
First, it reduces surprise. Major projects like roof replacements or parkade membrane repairs do not appear overnight. A well-prepared report identifies them years in advance, allowing councils to plan procurement and phase work strategically rather than responding in crisis mode.
Second, it influences strata fees and special levies. Lower monthly fees may look attractive in the short term, but if contributions to the contingency reserve fund are too low, the likelihood of large special levies increases. The funding models in a depreciation report help councils weigh the trade-off between gradual fee increases and sudden, significant levies.
Third, it affects resale value. Buyers reviewing Form B documents look closely at the depreciation report. An outdated or missing report can raise red flags and reduce buyer confidence. A current, well-structuredreport provides clarity and strengthens market perception.
There is also a governance benefit. When a depreciation report is in place, the voting threshold to spend from the contingency reserve fund on items listed in the report can drop from a three-quarter vote to a simple majority. In many communities, achieving 50 to 60 percent support is realistic, while 75 percent can be challenging. That lower threshold can make it easier to move forward with necessary projects.
Choosing the Right Depreciation Report Consultant
Not all depreciation report providers are the same. The updated regulations recognize specific professional designations as qualified to prepare reports in BC. From July 1, 2025 onward, consultants must meet one of the approved professional categories.
Michael LaPorte of Clarity Reserve Solutions, operating locally as NLD Consulting, brings more than three decades of appraisal experience and over 15 years focused specifically on reserve fund studies and strata depreciation reports. His professional designations align with the categories recognized under the current regulations.
Clarity works across multiple provinces, which provides broader perspective on reserve planning standards and funding best practices. In jurisdictions where adequate funding requirements are already established, reserve planning has evolved into a more disciplined financial exercise. That experience informs how funding scenarios are built and evaluated.
For strata councils, the practical step is to invite proposals from qualified firms. A request for proposal typically requires minimal information, such as a contact name and strata plan number. Councils can then compare scope, timelines, sample reports, and communication style before deciding.
Do Not Treat It as a Box Ticking Exercise
One of the biggest mistakes a strata can make is treating the depreciation report as a compliance document that sits on a shelf.
Used properly, it becomes a living financial plan. Councils can refer to it during annual budgeting, long term planning discussions, and major project decisions. It provides data to support difficult conversations about fee increases and helps owners understand the long term consequences of underfunding.
For homeowners, this is not abstract policy. It is about protecting your investment.
What You Should Do as a Homeowner
If you live in a strata property in BC, ask when your last depreciation report was completed. Confirm whether your building is on track for the 2026 or 2027 deadline. Review how your contingency reserve fund contributions align with the funding models in the report.
If your strata has not started the process and you are within the affected regions, raise it early. Capacity constraints are real, and securing a qualified consultant now is far less stressful than scrambling next year.
Depreciation reports are no longer optional. They are a mandatory, recurring part of strata governance in British Columbia. More importantly, they are one of the clearest tools available to reduce financial surprises, support stable property values, and bring long term clarity to your community’s future.
This blog was created in collaboration with Michael Laporte from Clarity Reserves Solutions and NLD Consulting. For more information on Clarity Reserves Solutions click here & more information on NLD Consulting click here.