Is It Worth Getting a Depreciation Report?

If you’re part of a strata council or own a strata property in British Columbia, you’ve likely heard about depreciation reports. These reports are required for most strata corporations under the BC Strata Property Act, but many strata owners still wonder: “Is it really worth getting a depreciation report?”

The short answer: Absolutely. A depreciation report is more than just a legal requirement—it’s a critical tool for maintaining your property’s value, avoiding unexpected costs, and planning for the future. Let’s explore why it’s worth the investment.

What Is a Depreciation Report?

A depreciation report provides a detailed analysis of your property’s common elements (e.g., roofs, elevators, windows) and their expected lifespans. It outlines when these components will need repairs or replacement and estimates the associated costs. This information is essential for:

1. Building a long-term maintenance plan

2. Ensuring proper reserve fund contributions

3. Avoiding surprise levies for sudden repairs

   
   

By delivering clarity on upcoming expenses, depreciation reports help strata corporations plan smarter and manage their properties more effectively.

Why Is a Depreciation Report Worth It?

1. Avoid Financial Surprises

   Without a depreciation report, strata corporations are often caught off guard by major repair costs. A roof replacement or elevator repair can cost hundreds of thousands of dollars—expenses that are difficult to manage without proper planning. Learn more about how ENGIPRO helps strata corporations plan to avoid surprises.

   
   

2. Maintain Property Value

   Well-maintained properties retain their value better than those with neglected upkeep. Buyers and real estate investors are increasingly scrutinizing depreciation reports to ensure the strata they’re investing in is financially stable. An up-to-date, comprehensive report demonstrates that your property is responsibly managed and prepared for the future.

   
   

3. Comply with BC Regulations

   Under the Strata Property Act, most strata corporations in BC must update their depreciation reports every five years unless waived by a 3/4 vote. However, waiving this requirement can signal poor financial planning to owners and buyers. Staying compliant not only avoids potential legal complications but also instills confidence among your strata members.

   
   

4. Support Long-Term Financial Planning

   A depreciation report provides a clear roadmap for when and how much your strata corporation will need to spend on major repairs. This transparency helps strata councils allocate funds effectively and avoids the stress of emergency levies.

   
   

5. Strengthen Buyer Confidence

   For prospective buyers, a depreciation report is a key factor in assessing a property’s financial health. Buyers want assurance that the strata is well-managed and won’t impose unexpected levies. Having a professional depreciation report in place makes your property more attractive and marketable.

The Risks of Skipping a Depreciation Report

While some strata corporations may choose to waive their depreciation report, this decision can lead to significant risks:

• Financial instability: Without accurate projections, it’s difficult to save adequately for future repairs.

• Decreased property value: Poor maintenance planning can deter buyers and reduce overall property value.

• Legal or compliance issues: Strata corporations that fail to meet their obligations under the Strata Property Act may face challenges in legal or financial disputes.

Why Choose ENGIPRO for Your Depreciation Report?

At ENGIPRO, we understand the importance of delivering reliable, actionable depreciation reports. Here’s why we’re the top choice for strata corporations in BC:

1. Certified Expertise: Our team includes Professional Engineers (P.Eng) and Certified Reserve Planners (CRP) who bring technical knowledge and financial foresight to every report.

   
   

2. Fast Turnaround: We deliver reports in under 30 days, ensuring you can plan without delays.

   
   

3. Custom Solutions: Our pricing and approach are tailored to your property’s size, age, and complexity.

   
   

4. Compliance Guaranteed: Every report meets the latest requirements of the BC Strata Property Act and industry standards.

Conclusion: Is It Worth It? Absolutely.

A depreciation report isn’t just a legal formality—it’s a valuable investment in your property’s future. From avoiding financial surprises to maintaining property value and ensuring compliance, the benefits far outweigh the cost. By working with a trusted partner like ENGIPRO, you can ensure your report is accurate, timely, and tailored to your needs.

Ready to Update Your Depreciation Report?

Don’t wait until unexpected costs catch you off guard. Contact ENGIPRO today to schedule your depreciation report and gain the insights you need to plan smarter and protect your property’s long-term value. With ENGIPRO, you get certified expertise, fast service, and competitive pricing.

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External Links:

1. BC Strata Property Act - https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/98043_01

2. BC Reserve Fund Planning - https://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/operating-a-strata/finances-and-insurance/the-contingency-reserve-fund-crf

3. BC Housing Depreciation Report Guidelines - https://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/operating-a-strata/repairs-and-maintenance/depreciation-reports

4. BCFSA Depreciation Report Guidelines - https://www.bcfsa.ca/industry-resources/real-estate-professional-resources/knowledge-base/advisory/strata-property-regulation-changes-strata-depreciation-reports