Thinking about a condo in Campbellton and worried about surprise special levies? You are not alone. One of the best tools you can use before you write an offer is the strata’s depreciation report. It helps you see what big repairs are coming and how the building plans to pay for them. In this guide, you will learn what a depreciation report is, how to read it, what to watch for in Campbellton and Strathcona, and a simple checklist to review with your agent. Let’s dive in.
What a depreciation report covers
A depreciation report is a long-term planning document for a strata. It lists major building components, estimates their remaining life, and projects repair or replacement costs over 20 to 30 years. It also models how much the contingency reserve fund, or CRF, should receive each year to meet those costs without large special levies.
In British Columbia, strata corporations follow the Strata Property Act framework. To understand how strata records work and what buyers can request, start with the BC government’s strata housing resources. You can find helpful guidance on procedures and disclosures in the BC government strata housing pages.
Key sections at a glance
- Executive summary and scope: time horizon, inspection level, and assumptions.
- Inventory of common assets: roof, cladding, windows, balconies, plumbing stacks, elevators, parking structure, paving, interior common areas, life-safety systems, and more.
- Condition and remaining useful life: estimated years left for each component.
- Cost estimates and timing: projected expenses in near-term, medium-term, and long-term buckets.
- Financial modeling: current CRF balance, recommended annual contributions, any special levy recommendations, and projected fund balances.
- Assumptions: inflation, interest, contingency margins, and escalation rates.
- Recommended work and priorities: items to tackle first and suggested timing.
What it is not
A depreciation report is not a warranty. It is a set of estimates based on assumptions. Many reports rely on visual inspections. Hidden issues, like moisture behind cladding, may require invasive testing to confirm. Costs can change with inflation, scope updates, or code changes. Treat it as a planning tool that guides questions and budgeting.
How to read the numbers
Focus on the next 1 to 5 years. That is where any immediate risk of fee increases or special levies usually shows up.
- Check the planning horizon, often 30 years, and how costs are grouped by time. Near-term items should get most of your attention.
- Compare the report’s recommended annual CRF contribution to the strata’s actual contributions in the financial statements or Form B. A gap suggests future fee increases or levies.
- Note the funding approach. A smoothing model spreads contributions more evenly. A pay-as-you-go model can lead to big spikes.
- Look for cost clusters. If roofing, windows, and balconies all show up within 2 to 3 years and the CRF is low, risk is higher.
Campbellton and Strathcona considerations
Campbellton is part of a coastal region with high rainfall and seasonal storms. That climate makes building envelope performance critical. Pay close attention to cladding, flashing, balcony membranes, window seals, and drainage. If the building is near salt air, corrosion on metal components can speed up.
Age and building type matter too. Older wood-frame buildings may face envelope renewals sooner than newer ones. Concrete buildings have different maintenance profiles and costs. BC is also seismically active. Some reports note seismic considerations, but they often do not budget for upgrades unless the strata asks for it.
Typical high-cost items in our area
- Building envelope remediation, including cladding and windows
- Roofing replacement
- Balcony repair and waterproofing
- Plumbing stacks and shared mechanical systems
- Exterior painting and waterproofing
- Elevator modernization for taller buildings
- Parking structure and waterproofing repairs
- Paving and drainage improvements
- Life-safety system replacements when required
Insurance and deductibles matter
Review the strata’s insurance summary in Form B. Pay attention to deductibles. A very large deductible can increase the chance of a special levy after an insured loss. Make sure you understand coverage limits and how the strata plans to fund deductibles if needed.
Steps before you write an offer
Give yourself time to gather and review documents. If you are in a competing offer situation, get these early.
- Request Form B, the full depreciation report, the last 12 to 24 months of minutes, and recent financial statements.
- Check the report date. If it is older than 3 to 5 years, ask about updates or minutes that show newer decisions.
- Compare recommended CRF contributions to actual contributions. Note the current CRF balance.
- Flag near-term projects in the report, then look in the minutes to see if any work has been approved or tendered.
Budgeting for owners and investors
Use the recommended annual contribution as your baseline. If the strata is contributing less, plan for future increases. If the report shows several large projects soon and the CRF is low, budget for the possibility of a special levy.
- Owners: consider how fee increases or levies affect your monthly affordability and emergency fund.
- Investors: build maintenance increases into your operating expenses and cash flow models. Stress test your numbers.
Offer tactics that protect you
Condition your offer on a full review of the strata’s documents. Ask about any approved special levies or planned major works. If the report shows significant near-term projects and the CRF is short, consider price negotiations, a financing contingency, or an allowance plan with your lender.
Work with your agent to set clear thresholds for acceptable levy risk. For example, you might decide that a projected levy above a certain percent of the purchase price requires renegotiation or a walk-away.
Red flags that should pause your offer
- No depreciation report, or a very old one with no update plan
- Multiple large levies in the last 12 months
- Major projects due in 1 to 3 years, but low CRF and low actual contributions
- A report prepared without clear professional credentials
- Visual-only inspection where envelope problems are suspected, with no plan for invasive testing
- Minutes that show disputes about repairs or incomplete remedial work
Buyer checklist to review with your agent
Use this when you sit down with your agent to make a plan.
Documents to request
- Current Form B: CRF balance, operating fund, any levies, insurance details, and whether a report exists
- Full depreciation report: date, preparer, credentials, inspection level, planning horizon, assumptions
- Minutes: last 12 to 24 months for projects, tenders, levies, and unresolved issues
- Financials and budgets: 2 to 3 years to verify actual CRF contributions and trends
- Any recent engineer or building envelope reports
- Insurance summary: deductible and coverage
Key items to pull from the report
- Report date and whether an update is recommended
- Preparer credentials, such as P.Eng, architect, or reserve planner
- Planning horizon and near-term project list with costs
- Recommended annual CRF contribution vs. actual contributions
- Current CRF balance and any percent funded metric the report provides
- Any recommended special levies and timing
- Items clustered in the same years that could strain cash flow
- Inflation and interest assumptions, and whether they are conservative
Red flags to escalate
- Report older than 3 to 5 years with no update plan
- Visual-only review when envelope concerns exist
- Multiple near-term projects with a low CRF
- Recent levies that drained the CRF without a clear plan to rebuild it
- Minutes showing disputes, unresolved warranty claims, or deferred repairs
Questions to ask the strata or listing agent
- Has the strata followed the funding plan in the report? If not, why?
- Which projects are approved, tendered, or underway now?
- Has the strata discussed seismic work or regulatory changes that could add cost?
- What was the inspection level? If visual, are more tests planned?
- Do insurance coverage and deductibles match the strata’s ability to pay?
Sample decision thresholds to set in advance
- If the next 2 years show a levy or fee increase above a chosen percent of your income or expected rent, consider renegotiation.
- If the CRF percent funded is very low and near-term liabilities far exceed the CRF, add financial contingencies or pause.
Who prepares reports and how to verify
Depreciation reports are usually prepared by qualified building professionals, such as engineers, architects, building envelope specialists, or reserve fund consultants. Check the preparer’s credentials and whether a physical inspection took place.
Local guidance when you need it
Reading a depreciation report gets easier when you know what to look for. You now have the key steps to spot near-term costs, gauge levy risk, and write a confident offer in Campbellton. If you want a calm, local walkthrough of the documents and how they fit your goals, we are here to help.
Have questions about a specific building or report? Connect with Sophie Gardner for local insight and a smart plan for your next move.
FAQs
What is a depreciation report for a BC strata?
- It is a long-term planning study that lists major common assets, estimates their remaining life, and projects costs and funding so owners can avoid sudden levies where possible.
How often should a strata update its depreciation report in Strathcona?
- Update practices vary and may change with regulations. Check the strata’s minutes, ask the council, and review the BC government strata resources or CHOA for current guidance.
What if the Campbellton building’s report is older than 5 years?
- Ask for an update or recent minutes that show funding decisions since the report. Treat assumptions with caution and adjust your offer strategy or budget if near-term costs are unclear.
How do insurance deductibles affect condo buyers?
- A large deductible can lead to a special levy after a covered loss. Review the Form B insurance summary and confirm the strata’s plan to fund deductibles.
Who can explain technical items in the report?
- A qualified engineer or building envelope specialist can help. Verify credentials through Engineers and Geoscientists BC, and consult your lawyer or notary for contract questions.
