Five-Year Depreciation Report Updates
Under current BC requirements, strata corporations with five or more lots must obtain depreciation reports on a five-year cycle. An update is valuable because the building, site infrastructure, project history, construction market and contingency reserve fund may all have changed since the previous report.
What changes between reports?
- capital projects may have been completed, deferred or reprioritized;
- components may be performing better or worse than originally expected;
- replacement-cost estimates may change with labour, material and market conditions;
- the contingency reserve fund balance and contribution history will be different; and
- the strata may have added or removed assets, amenities or systems.
Updating the physical inventory
The update should include another on-site visual review of the relevant common property and assets. Previous information can be useful, but the current report should reflect the property as it exists now rather than simply roll old dates forward.
Updating the financial model
The 30-year forecast should be recalculated using current reserve information, contribution assumptions, project timing and estimated costs. This allows council to compare funding approaches using a current baseline.
Using the same provider
Continuity can make an update more efficient because the provider already understands the property and prior assumptions. Coast to Crest offers returning clients a 10% discount on consecutive depreciation report updates.
Primary source: Province of British Columbia — Strata depreciation report requirements.
Additional provincial guidance: Province of British Columbia — Practical tips for strata depreciation reports.