11/14/2012 15:10 EST | Updated 01/14/2013 05:12 EST

B.C. stratas required to file depreciation reports by 2013

Most strata corporations in B.C. will be required to complete depreciation reports by December 2013 which detail the condition of the building and maintenance it will need over the next three decades.

David Albrice of RDH Building Engineering, which compiles these reports, says they not only show problems the building will have, but also how strata councils will deal with the problems.

"If we are on top of our maintenance and we're doing good due diligence, the report will reflect that. In fact, a depreciation report is not just about making projections into the future, but it's also about reflecting what the owners have done historically."

Albrice isn't concerned about the reports affecting property values because he says every building requires maintenance in the long term.

He says the reports will help ensure adequate funds are set aside each fiscal year in order for renewal work to be carried out at the appropriate time before asset failure occurs and with minimal financial hardship for the owners.

Albrice said the reports cost between several hundred to several thousands dollars, depending on the scope and the size of the building. Updates will be required every three years, including an onsite inspection.

Some strata councils that are smaller than five units or that vote annually with a ¾ majority support may be able to exempt themselves from filing the reports.