Commercial strata in 2026: turn the depreciation report into a funding plan

1. Check which reporting timetable applies

B.C. requires depreciation reports for strata corporations with five or more lots; four or fewer remain exempt. For established corporations without a report, or with one received before December 31, 2020, the deadline was July 1, 2026 in Metro Vancouver and the Fraser Valley, with an exception for Metro Vancouver islands accessible only by boat or air. Newer corporations have separate first-report rules. Confirm which rule applies to the strata you are reviewing. Read the source.

Ask for the actual report and its date before committing to a purchase price or next year’s budget. If it is missing, ask the council or manager for the status and obtain advice on the implications. A promise that it is being prepared is not a substitute for the information it should contain.

2. Separate the forecast from the decisions already made

The provincial requirements include a long-term component assessment and funding scenarios. Those scenarios are planning models, not proof that owners have approved a project or adopted a particular funding route.

Build a short worksheet with one line for each material item: component, expected work, report estimate, later quotation, decision status and possible effect on the premises. For an industrial unit, loading-area repairs may matter as much as the roof. For retail or office space, ask how access and building services would be maintained during work.

3. Connect shared costs to your own budget

Read the current budget, financial statements and meeting minutes alongside the report. Ask what reserve money is already committed, which projects have moved forward and what remains uncertain. Have the strata manager and your adviser explain how expenses would be allocated to your lot; do not simply divide a building-wide estimate by the number of units.

Illustrative example: two similar units advertise comparable monthly strata fees. One building has completed a major repair; the other is still reviewing quotations. The monthly fee alone does not reveal that difference. Compare documented work and outstanding decisions before treating the units as financially equivalent.

4. Turn uncertainty into questions before committing

A buyer can use the worksheet to identify questions for the seller, strata manager, building specialist and lender. Ask whether later inspections change the report’s assumptions and whether a separate assessment of the unit is needed. The shared-property report does not settle every question about equipment or improvements inside your premises.

If a sale is underway, ask your lawyer how the contract should address existing or proposed levies and the timing of responsibility. Sellers should provide a consistent set of records and identify unresolved items rather than presenting a forecast as a fixed future bill.

5. Keep the plan useful after purchase

Put known maintenance decisions and review dates into the ownership file. When a project is completed, retain the relevant records and ask whether the cost forecast needs updating. Review the plan when your operation changes, a lease is renewed or an exit is being considered.

The decision is not simply whether the strata has a report. It is whether you understand the building’s needs well enough to budget, operate and explain the property to the next buyer. Start with the largest unresolved item and establish who will answer it.

Sources and further reading

• B.C. government: depreciation report requirements

General information for commercial property decisions in Metro Vancouver and the Fraser Valley. Confirm property-specific requirements with the appropriate legal, financial and technical advisers.