Special levies are rarely “out of nowhere.” Most of the time, they happen because a building’s major components are aging faster than expected, the long-term plan has not been updated, or the contingency reserve fund (CRF) has not kept pace with real-world costs. A depreciation report is the best tool strata corporations have to see these risks early and make funding decisions before owners are forced into a high-stress vote.
In British Columbia, a depreciation report is a professional assessment of a building’s common property and assets. It estimates the remaining life of key components, forecasts future repair and replacement costs, and models different funding scenarios so councils can plan ahead. Even if your strata is allowed to defer or waive a report under certain conditions, understanding the purpose of the report helps owners evaluate whether the building is being managed proactively.
1) What a depreciation report typically includes
A solid depreciation report usually covers:
• An inventory of major common property components (roofing, exterior envelope elements, windows as applicable, balconies, mechanical systems, paving, drainage, and more)
• Current condition observations and risk notes
• Estimated remaining service life for each component
• Replacement or major repair cost projections
• Funding models showing how the CRF may perform over time under different contribution levels
• A timeline view of when large expenses are likely to occur
The most useful reports connect the technical condition to a realistic financial plan—so councils can understand not only what needs to be done, but when and how to pay for it.
2) Why depreciation reports reduce special levy risk
Special levies happen when a major expense arrives and the CRF is not ready. Depreciation reports help reduce that risk in three ways:
• Earlier visibility: councils can see upcoming capital needs years in advance
• Smoother contributions: owners can adjust CRF contributions gradually instead of facing a sudden lump sum
• Better project timing: councils can bundle related work, plan tendering properly, and avoid emergency pricing
Importantly, a depreciation report does not guarantee there will never be a special levy. It makes the “why” and the “when” clearer, so funding decisions are intentional instead of reactive.
3) How councils should use the report (not just file it away)
A depreciation report creates value only when it is actively used. Best practice is to:
• Review the report annually during budget planning
• Update the funding plan when major assumptions change (insurance deductibles, contractor pricing, new deficiencies)
• Align routine inspections and maintenance schedules to the long-term capital forecast
• Communicate clearly with owners about upcoming projects and CRF strategy
When councils use the report as a living planning tool, owners gain confidence and decision-making becomes more predictable.
4) Why Sea-to-Sky conditions make long-term planning even more important
Squamish and Whistler buildings often face higher weather exposure and seasonal maintenance swings. Moisture management, freeze/thaw cycles, snow load considerations, drainage, and exterior wear can influence both timing and cost of repairs. Local vendor capacity and seasonal scheduling can also affect project pricing. These realities make proactive capital planning and disciplined maintenance coordination especially valuable.
5) Where professional strata management fits
Professional strata management helps turn the depreciation report into action. That includes coordinating inspections, organizing records, budgeting and financial reporting support, vendor sourcing, and maintaining continuity when council membership changes. It also helps ensure the strata is tracking the decisions and follow-through that reduce surprises over time.
If you want an overview of local strata management support in the Sea-to-Sky corridor, these pages are a helpful starting point:
At the end of the day, a depreciation report is not just a technical document. It is the clearest way to link building reality to financial planning—so owners can protect property value, reduce conflict, and avoid the stress of sudden, avoidable special levies.
