Depreciation Reports & Reserve Funds
A depreciation report is a professional plan for a strata's large repairs over the next 30 years. In BC, a strata with 5 or more homes must get one every 5 years. A strata of 4 or fewer homes does not have to, and that covers most duplexes, triplexes and fourplexes. Every strata, whatever its size, must save at least 10% of its yearly operating budget for repairs.
Questions about this guide: Gary Paul, REALTOR®, Personal Real Estate Corporation, Grand Central Realty, 778-828-7476
Key Topics
Who needs one
Since July 1, 2024, every BC strata with 5 or more homes must get a depreciation report every 5 years. A strata of 4 or fewer homes is exempt.
No more voting to put it off
Before July 2024, owners could put off a report each year with a 3/4 vote. That option is gone, so a strata of 5 or more homes must have a current report.
New buildings
A strata of 5 or more homes created from July 1, 2024 gets its first report within two years of its first annual general meeting. From July 1, 2027 the limit drops to 18 months.
Who may write it
Since July 1, 2025, only six professional groups named by the province may prepare a depreciation report, including engineers, architects and certified reserve planners.
What is inside
An on-site inspection of the shared parts of the building, an estimate of how long each one will last over 30 years, and at least 3 ways the strata could fund the repairs.
Savings for every strata
Since November 1, 2023, every BC strata must put at least 10% of its yearly operating budget into its contingency reserve fund, whether or not it needs a report.
Which Buildings Need a Report
| Strata | Depreciation report | Savings for repairs |
|---|---|---|
| 2 to 4 homes (duplex, triplex, fourplex) | Not required | At least 10% of the operating budget each year |
| 5 or more homes | Required every 5 years | At least 10% of the operating budget each year |
| 5 or more homes, created July 1, 2024 to June 30, 2027 | First report within 2 years of the first annual general meeting | At least 10% of the operating budget each year |
| 5 or more homes, created from July 1, 2027 | First report within 18 months; the company that created the strata pays part | At least 10% of the operating budget each year |
Who May Prepare a Report
- Professional engineers, through Engineers and Geoscientists BC
- Architects and architectural technologists, through the Architectural Institute of BC
- Applied science technologists and certified technicians, through ASTTBC
- Accredited appraisers, through the Appraisal Institute of Canada
- Certified reserve planners, through the Real Estate Institute of Canada
- Professional quantity surveyors, through the Canadian Institute of Quantity Surveyors
Our view
Buyers of a duplex, triplex or fourplex often expect a depreciation report and are surprised when there is none. The law does not require one for these buildings, so the savings fund balance and the minutes become your main evidence of how repairs will be paid.
In a building of 5 or more homes, a current report is now the normal case. If one is missing, ask why before you go further. Talk to our team if you would like help reading the documents for a home you are considering.
Where these rules come from
- Strata depreciation report requirements, Government of British Columbia. Published November 12, 2025, accessed October 8, 2026.
- The contingency reserve fund (CRF) in strata corporations, Government of British Columbia. Published April 22, 2024, accessed October 8, 2026.
- Budgeting and strata fees, Government of British Columbia. Published April 22, 2024, accessed October 8, 2026.
- Strata Property Act, Part 6: Finances (sections 91 to 118), BC Laws. Current consolidation, accessed October 8, 2026.
General information only. The depreciation report and savings rules on this page are as published by the BC government on the dates noted, and they change from time to time. None of this is legal advice. Before you buy, read the documents for the home you want and ask a BC real estate lawyer about anything that concerns you.
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Key Takeaways
- A strata of 5 or more homes must get a depreciation report every 5 years. A strata of 4 or fewer is exempt.
- Owners can no longer vote to put off a report.
- Only six professional groups named by the province may prepare one, since July 1, 2025.
- Each report plans 30 years ahead and gives at least 3 ways to fund the repairs.
- Every strata must save at least 10% of its yearly operating budget for repairs.
- In a duplex, triplex or fourplex, ask how repairs are planned, since there may be no report.
Frequently Asked Questions
What is a depreciation report?
A depreciation report is a professional plan for a strata's large repairs. Under BC's rules it starts from an on-site visual inspection of the shared parts of the building, estimates how long each part will last over the next 30 years, and sets out at least 3 ways the strata could fund the work from its contingency reserve fund. It also states the current balance of that fund and has an executive summary.
Which BC stratas need a depreciation report?
Since July 1, 2024, every BC strata with 5 or more homes must get a depreciation report every 5 years. A strata with 4 or fewer homes is exempt. That means most duplexes, triplexes and fourplexes do not need one, while a sixplex or an eightplex does. In Metro Vancouver, a strata of 5 or more homes with no report, or one from before December 31, 2020, had until July 1, 2026 to get a new one.
Does a fourplex need a depreciation report?
No. A fourplex strata has 4 homes, and BC exempts a strata of 4 or fewer homes from the depreciation report rule. It still has to save at least 10% of its yearly operating budget in its contingency reserve fund. Because there may be no written repair plan, ask the seller how the owners plan and pay for large repairs, and read the minutes of recent meetings before you buy.
Can strata owners vote to skip the depreciation report?
No, not any more. Before July 1, 2024, the owners of a BC strata could put off getting a depreciation report each year with a 3/4 vote. The BC government removed that option, so a strata of 5 or more homes must now get a report every 5 years. If you are looking at an older building of 5 or more homes, ask for the latest report and the date it was prepared.
When does a new multiplex building get its first depreciation report?
If the strata has 5 or more homes and was created on or after July 1, 2024 but before July 1, 2027, it must get its first report within two years of its first annual general meeting. A strata created on or after July 1, 2027 must get one within 18 months, and the company that created it must pay part of the cost: $5,000 plus $200 per home, up to $30,000.
Who is allowed to prepare a depreciation report in BC?
Since July 1, 2025, only six professional groups may prepare one: professional engineers, architects and architectural technologists, applied science technologists and certified technicians, accredited appraisers, certified reserve planners, and professional quantity surveyors. Each works through its own professional body, such as Engineers and Geoscientists BC or the Architectural Institute of BC. A report from anyone else does not meet the BC requirement.
What is the contingency reserve fund?
The contingency reserve fund is the strata's savings account for large repairs that do not come every year, such as a new roof. Since November 1, 2023, every BC strata must put at least 10% of its yearly operating budget into it, and the BC government says the amount should take the depreciation report into account where there is one. A small balance can mean a special levy when a large repair comes.
How should a buyer read a depreciation report?
Start with the executive summary, then find the repairs the report expects in the next few years and their estimated cost. Compare the funding models in the report with what the current budget saves each year, and with the balance on the Form B information certificate. If the budget saves less than the report suggests, ask the owners how they plan to pay for those repairs before you remove your conditions.
What should I check in a small strata with no depreciation report?
Ask how the owners plan for large repairs and how much is in the contingency reserve fund. The Form B information certificate shows the balance, and the minutes of recent meetings show what repairs the owners have discussed and how they paid for past ones. In a new building, ask what the warranty covers and for how long. Make your offer subject to reading these documents.
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