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BC depreciation reports were introduced in 2013 with a soft enforcement mechanism: corporations could defer the requirement annually by three-quarter vote. The 2024 amendments removed the deferral option, set a strict five-year cycle, and gave Metro Vancouver stratas until July 1, 2026 to comply.
What a depreciation report is
A depreciation report is a long-range capital plan for the corporation's common property. It identifies every major component, estimates each component's useful life and replacement cost, and sets out a 30-year funding plan.
Who must comply
The rule applies to every BC strata corporation with five or more strata lots. Stratas with four or fewer lots remain exempt. Corporations with an existing depreciation report dated December 31, 2020 or later are on the new five-year cycle starting from their report date. Corporations without a report, or with one dated before December 31, 2020, must comply by July 1, 2026 (Metro Vancouver, Fraser Valley, most CRD) or July 1, 2027 (rest of BC).
What's in a compliant report
- Overview of common property and limited common property
- Schedule of major components with estimated useful life
- Current condition assessment for each major component
- Replacement cost estimates (inflation-adjusted)
- 30-year cash flow projections
- Three funding scenarios (typically: minimum, recommended, accelerated)
- An executive summary suitable for AGM distribution
Who can prepare the report
Effective July 1, 2025, only six designated professional groups may produce depreciation reports: professional engineers (P.Eng.), architects, applied science technologists, qualified appraisers, architectural technologists, and professional licensee engineers.
What it costs
Typical 2026 costs in the Lower Mainland: 5-15 units (townhouse) $5,000-$8,000; 16-50 units (low-rise) $8,000-$14,000; 51-120 units $14,000-$22,000; 120+ units (high-rise) $22,000-$30,000+.
How long it takes
Engagement timelines as of mid-2026: 3–5 months from engagement to draft report (typical), plus 4–8 weeks for council review and AGM presentation. Some firms are now booked through Q3 2026, raising the risk of missing the July deadline.
The owner-developer obligation
For new stratas, the owner-developer must fund the corporation's first depreciation report: $5,000 base + $200 per strata lot, capped at $30,000.
What happens if you miss the deadline
Insurance underwriters request depreciation reports as part of renewal, buyers' lawyers raise concerns when reviewing Form B disclosure, and the corporation has a harder time evidencing major-repair decision-making without a report.
For the broader financial implications, see our reserve fund planning guide.