Legal

November 6, 2025 Published by British Columbia Chapter - By Andrée Ball

The Great Procrastination: Appreciating Your Depreciation Report

From CCI BC Strata Connection Magazine, Volume 05, Fall/Winter 2025

Let’s be honest, the idea of commissioning a depreciation report doesn’t exactly spark joy for most strata councils.

“Our building isn’t that old!” “Can’t we just wait until next year?” “We’ve endured without one for decades, why start now?”

The Strata Property Act sets clear expectations for strata corporations to manage their properties responsibly, including the requirement for a depreciation report. The report stands out as a crucial tool for long-term planning and financial stability. Ignoring the depreciation report is like skipping dentist visits. Sure, you could ignore that cavity, but don’t blame the dentist when it turns into a root canal, or worse. 

Despite its importance, many strata councils approach it with reluctance, if not outright avoidance. However, there is great value in the depreciation report, particularly in its role in property management, and how collaboration with qualified professionals who can draft the report can make all the difference.

A depreciation report is more than just a legal requirement under the Strata Property Act; it’s a roadmap for maintaining the health and value of your property. 

• Physical Analysis: An inventory and current condition of all major assets, from roofs to windows to mechanical systems.
• Financial Analysis: A financial forecast outlining when repairs or replacements will be needed and their associated costs over a 30year period.

As of 2024, Strata corporations can no longer defer completing their depreciation report. Gone are the days when deferrals were permitted with an annual ¾ vote. Strata corporations with five or more strata lots are required to update their report every five years, ensuring it remains a relevant and actionable document.

Depreciation Reports Matter

The biggest problem is the name – a well-structured depreciation report does measure the loss in value (depreciation), but really it provides the opportunity for investment into your asset.

A depreciation report is not just paperwork; it’s a strategic planning tool that helps strata corporations prepare for future expenses by guiding reserve fund contributions. It can reduce the likelihood of unexpected and costly special assessments. 

It protects your property value by ensuring timely maintenance and repairs. It provides a foundation for long-term financial planning.

Regular reviews and updates, coupled with ongoing support from your provider, ensure the report remains a valuable resource. It’s about making informed decisions today to avoid financial and logistical headaches tomorrow.

Selecting the Right Partner

Not al depreciation report providers are created equal, and selecting the right partner can significantly impact the quality and usability of your depreciation report. As of June 2024, designated professionals include engineers, architects, certified reserve fund planners, appraisers, and quantity surveyors.

When choosing a partner, consider their experience with similar properties. Request references along with past client feedback. Ensure that their methodology and approach to creating actionable recommendations align with the needs of your strata.

A strong partnership with your provider ensures the report is not just a document that sits on a shelf but is a practical guide for your strata’s future.

Collaboration Is Key

Creating a depreciation report involves several key steps:

• Initial Consultation: Discussing the scope of the report and the specific needs of the strata corporation.
• Property Inspection: A thorough assessment of the property’s assets by qualified engineers.
• Data Analysis and Financial Forecasting: Preparing realistic cost estimates and timelines for maintenance and replacements.
• Delivery and Discussion: Presenting the report to the strata council and addressing any questions or concerns that may arise.

The success of this process relies on active participation from the strata council members and the property manager, ensuring the report reflects your strata’s unique needs.

The depreciation report is an essential tool for strata corporations, offering a clear path to financial stability and safeguarding property value. By embracing this process and perhaps laughing at the reluctance along the way, strata councils can turn a misguided perception of depreciation reports being a burden into a valuable tool. With the right partner and a proactive mindset, your depreciation report can become the cornerstone of your property’s long-term success.

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Andrée Ball is Vice President of Corporate Services at Keller Engineering. She serves as Chair of CCI-National and is a long-time volunteer with CCI-Eastern Ontario. Recognised in the condominium industry, Andrée contributes to conferences, publications, and nonprofit initiatives. She is dedicated to advancing best practices within Keller and the broader CCI community.