By Sean Phillips, REALTOR®, Strand resident ·
Short answer: A depreciation report is a professional study of a strata's common property (roofs, windows, elevators, pools, docks and more) that estimates when each item will need repair or replacement and what it will cost over the next 30 years. Under BC's updated rules, most stratas with five or more lots must get one every five years, and they can no longer vote to skip it.
What's in a depreciation report?
- An inventory of the common property and its condition
- The expected remaining life of major components
- Estimated repair and replacement costs over 30 years
- At least three funding models showing how the contingency reserve fund could pay for them
Reports must be prepared by qualified professionals such as engineers, architects, certified reserve planners, accredited appraisers or quantity surveyors.
What changed in BC
The province tightened the rules to protect owners. Stratas with five or more lots must now obtain a depreciation report every five years, and the old option to waive it by a 3/4 vote each year is gone. Stratas outside Metro Vancouver, the Fraser Valley and the Capital Regional District have until July 1, 2027 to comply if they don't already have a current report.
Why buyers should read it
The depreciation report shows you what's coming. If the report says the roof, balconies or dock will need major work in the next few years and the contingency reserve fund is thin, you could face a special levy or higher strata fees. Compare the report with the current reserve fund balance, the budget and the minutes.
Red flags to look for
- Big-ticket items due soon with little money set aside
- A report that's old or missing
- Minutes showing owners repeatedly voting down recommended work
- Large differences between the report's recommended contributions and the actual budget
How waterfront complexes differ
Waterfront buildings have extra components to plan for, such as marinas, docks, pools, hot tubs and beach areas. Make sure these appear in the report and are funded.
Frequently asked questions
How often does a BC strata need a depreciation report?
Stratas with five or more lots must obtain one every five years under the updated rules, and can no longer waive it by vote.
Can I see the depreciation report before I buy?
Yes. Ask for it as part of the strata documents, and make your offer subject to reviewing it.
What is a contingency reserve fund?
It's the strata's savings account for major repairs and replacements. The depreciation report helps the strata decide how much to contribute each year.
More guides to Okanagan Landing and The Strand
- What Is a Form B Information Certificate in BC?
- What Does a Strata Council Do? A Guide for BC Condo Owners
- How to Buy a Waterfront Condo in Vernon, BC: A Step-by-Step Guide
- The Strand Lakeside FAQ: 50 questions answered
Have a question about waterfront living in Vernon?
I'm Sean Phillips, a REALTOR® with Coldwell Banker Executives Realty. I live at The Strand in Okanagan Landing and specialise in Vernon-area waterfront condos. For current listings and recent sales, visit 7343okanaganlanding.ca.
Text Sean: 778-363-0542
Call or text Sarah, my 24/7 info line: 604-227-4810
This article is general information as of fall 2026, not legal, tax or financial advice. Rules, fees and conditions change, so always confirm details with the appropriate professional or authority before making a decision.
General information only, not legal, tax or financial advice. Confirm details for your situation with the appropriate professional.
