Reports help mitigate costly strata repairs

Depreciation reports give strata councils tools to plan for future repairs.

When the roof is leaking or broken pipes are gushing water into condominiums, it might be too late to go through the lengthy tendering process to get a competitive price on repairs.

“When condo owners wait until there is an emergency they become victims of emergency repair construction costs,” said Tony Gioventu, executive director of the Condominium Home Owners Association of B.C.

A depreciation report is a tool to help strata councils mitigate unexpected repair costs and high special levies.

In December 2011, the province introduced legislation requiring strata corporations to obtain depreciation reports by Dec. 14, 2013, or hold a vote to waive that requirement.

Deryk Norton, a board member of the Vancouver Island Strata Owners Association, said having a depreciation report allows strata corporations to create better plans for long-term maintenance and repair work and set aside money for costs.

It might also help owners maintain property values, he added, because potential buyers might look for a depreciation report.

Norton said depreciation reports will show how much money a strata council has to set aside for major repair work, which may reduce the need for special levies.

“Big special levies are devastating to any community,” said Gioventu.

Gioventu said a number of the provincial association’s members completed depreciation reports and it’s been a useful exercise, adding that it was a “bit of a revelation” for some because they discovered that there isn’t enough money in the bank for future repairs.

Some strata corporations aren’t putting enough money into contingency funds to cover future repair costs, he said. Some councils put in between $15-25 from each strata unit, when about $40-75 per unit needs to be added. Money invested in contingency funds will benefit strata corporations because it gains compound interest over time and it’s not taxable,  which could mean a big difference when repairs come due, he added.

The costs of depreciation reports for strata corporations can vary.

Costs depend on a number of factors such as how much detail and documentation strata councils can provide or if the tender company must gather those itself, if it has an inventory of all common property and building components that must be included, the number of bylaws and user agreements and more.

To help strata councils decide how to create their written request for proposals CHOA has examples of depreciation report proposals and a guide on its website,

The Vancouver Island Strata Owners Association has resources for strata councils available on its website, or people can contact the association’s helpline at 1-877-338-4762.

Strata councils that want advice on depreciation reports can attend the Vancouver Island Strata Owners Association’s seminar Sunday (Sept. 9) at the Beban Park social centre.

The seminar features a panel of speakers from various fields including engineering, legal, property appraisal and real estate.

Doors open at 12:15 p.m. and the seminar runs 1-4 p.m. People interested in attending must register before the end of the business day today (Sept. 6) by calling 1-877-338-4762 or e-mailing Admission is free for Island strata association members and $20 for non-members.

Just Posted

Nanaimo Fire Rescue firefighters at the scene of a single-vehicle crash on Tenth Street near Southside Drive on Sunday, June 13. (Greg Sakaki/News Bulletin)
Driver OK after crashing vehicle off the side of Nanaimo’s Tenth Street

Crews say wet roads a factor a crash Sunday, June 13

Emergency crews on scene of a two-car crash at the intersection of Cranberry Avenue and the Trans-Canada Highway on Sunday, June 13. (Greg Sakaki/News Bulletin)
Crash blocks Cranberry intersection in Nanaimo, no one injured

Incident blocks both southbound lanes of Trans-Canada Highway

(PQB News file photo)
Fireworks report highlights enforcement challenges for Regional District of Nanaimo

Director: ‘I just think it’s wasting everybody’s time’

Nanaimo is the first city in Canada to subscribe to the Chonolog environment photo-monitoring system, which allow residents to contribute photos of habitat restoration projects that are converted to time lapse sequences showing environmental changes. (Chris Bush/ News Bulletin)
Nanaimo residents invited to be citizen scientists by sharing habitat restoration photos

Nanaimo first city in Canada to sign up for Chronolog environment photo monitoring service

An event on the lawn of the B.C. legislature in Victoria on Tuesday to remember the 215 children whose remains were confirmed buried in unmarked graves outside a Kamloops residential school. (Greg Sakaki/News Bulletin)
LETTER TO THE EDITOR: Canada’s racist systems cannot ever be forgiven

Teen letter writer from Nunavut calls for truth and reconciliation

Emergency crews on scene of a two-car crash at the intersection of Cranberry Avenue and the Trans-Canada Highway on Sunday, June 13. (Greg Sakaki/News Bulletin)
Crash blocks Cranberry intersection in Nanaimo, no one injured

Incident blocks both southbound lanes of Trans-Canada Highway

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Members of the Department of Fisheries and Oceans’ Marine Mammal Response Program rescued an adult humpback what that was entangled in commercial fishing gear in the waters off of Entrance Island on Thursday, June 10. (Photo courtesy Marine Mammal Response Program)
Rescuers free humpback ‘anchored’ down by prawn traps near Nanaimo

Department of Fisheries and Oceans responders spend hours untangling whale

A section of proposed Harbourfront Walkway between White Eagle Terrace and Battersea Road. (City of Nanaimo image)
Nanaimo’s proposed walkway extension project estimated at $25-30 million

City asking for feedback on concepts to connect Departure Bay Beach and ferry terminal

City of Nanaimo council has approved amendments for an animal control bylaw requested by the Ministry of Forests, Lands and Natural Resource Operations. The bylaw includes language related to quail. (Wikipedia Commons photo)
Province asks for tweaks to Nanaimo’s animal responsibility bylaw

Ministry concerned bylaw wording could create municipal and provincial jurisdictional overlaps

Nanaimo Regional General Hospital. (News Bulletin file)
Nanaimo hospital district seeks help from other districts for $1-billion project

Funding for Nanaimo Regional General Hospital patient tower discussed by committee

Stuffed toys, many with donations pinned to them, are piled in the Lions Pavilion at Maffeo Sutton Park at a vigil May 31 honouring the 215 Indigenous children whose remains were discovered outside a residential school in Kamloops. (News Bulletin file photo)
Thousands donated to child and family service agency following Nanaimo vigil

Toys and money donated to Kw’umut Lelum child and family services

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Most Read