Condo Reserve Fund Study and BC Strata Depreciation Report
A reserve fund study - called a depreciation report in British Columbia - combines a condition assessment of a condominium or strata building with a financial plan for repairing and replacing its common property. It tells the board how much money the reserve fund needs and how contributions should be set so owners are not hit with special levies. CMG Engineering Services Corporation prepares reserve fund studies in Alberta and Ontario and depreciation reports in British Columbia.
Legal requirements by province
- British Columbia - section 94 of the Strata Property Act defines the depreciation report and how it relates to the strata's contingency reserve fund. Strata corporations must obtain one at least every five years, prepared by a qualified person, which includes a professional engineer registered with Engineers and Geoscientists BC (EGBC).
- Alberta - the Condominium Property Act and its regulation require condominium corporations to have a reserve fund study and reserve fund plan, updated at least every five years, prepared by a qualified person such as a member of APEGA.
- Ontario - the Condominium Act, 1998 requires condominium corporations to carry out reserve fund studies on a regular cycle, at least every three years, prepared by a qualified person such as a member of Professional Engineers Ontario (PEO).
How we prepare the study
We start with a full building condition assessment of the common property using the ASTM E2018-24 method. An engineer inspects the roofs, building envelope, windows, parkade, structure, mechanical and electrical systems, elevators, fire protection and site elements, and records the age, condition and remaining service life of each component.
We then estimate the replacement cost of each component and when it will be due, usually over a 30-year planning horizon. Using the corporation's current reserve fund balance, contributions and interest assumptions, we produce a cash-flow plan with monthly and yearly contribution scenarios that keep the fund adequate.
What the board receives
- A component inventory with condition, remaining life and replacement cost
- A 30-year expenditure forecast
- Funding scenarios and recommended contributions
- Photographs and plain-language explanations owners can follow
- A report that meets the provincial requirement for BC, Alberta or Ontario
Why choose CMG
CMG has carried out building condition assessments since 1988 and has the engineering and financial experience to tie the two together. We are independent: we have no interest in any contractor, the board or individual owners, so our recommendations are based only on the condition of the building and the numbers. Our staff hold the professional registrations each province requires.
Converting an existing building into condominiums in Alberta? See our Converted Property Summary service.
To get an estimate, contact CMG with the property address, the property type and your timeline. We normally reply within one business day.
Frequently asked questions
What is a depreciation report in BC?
It is the BC name for a reserve fund study under section 94 of the Strata Property Act: a condition assessment of the strata's common property plus a financial plan for the contingency reserve fund.
How often is a reserve fund study required?
At least every five years in BC and Alberta, and at least every three years in Ontario.
Who can prepare a reserve fund study?
A qualified person, which includes a professional engineer registered with EGBC in BC, APEGA in Alberta or PEO in Ontario.