Authored by: Rimkus Built Environment Solutions Marketing Team
Reserve fund study requirements for condominium and strata corporations vary widely across Canada. Nine provinces and the Northwest Territories require a periodic reserve fund study; Prince Edward Island, Yukon, and Nunavut do not mandate one.
Even among the jurisdictions that require a study, terminology, renewal cycles, planning horizons, exemptions, and preparer qualifications all differ, sometimes substantially between provinces that otherwise look similar on paper.
Boards should confirm four things for their own jurisdiction: whether a study is required, when it must be completed or updated, how far the funding plan must project, and who is legally qualified to prepare it.
British Columbia strata corporations with a report older than December 31, 2020, or no report at all, face transition deadlines of July 1, 2026, or July 1, 2027, depending on location. The comparison below walks through each province’s requirements, what a study must cover, and who is qualified to prepare one.
Key takeaways: Reserve fund study requirements across Canada
Condominium and strata boards face province-specific rules for capital planning studies. Terminology, cycle, and horizon differ by jurisdiction; boards should not assume another province’s rules apply to their own building.
What matters most
- British Columbia requires a depreciation report every five years for stratas with five or more lots; other provinces use reserve fund study, with cycles and horizons that differ by jurisdiction.
- Where a study is required, it identifies major shared assets, estimates repair timing, and models how the reserve fund could pay for that work.
How boards approach compliance
- Boards review the applicable cycle, threshold, and horizon for their jurisdiction.
- They confirm preparer credentials against the province’s prescribed list.
- Boards use the study’s funding scenarios to inform the annual budget.
Rimkus supports boards with building condition assessments and capital planning; contact us to discuss a reserve fund study.
What a reserve fund study is
A reserve fund study is a long-range assessment that estimates when a building’s major shared components will need repair or replacement and how much a corporation should set aside to pay for that work. It pairs a physical inventory of common-property components with a funding plan that projects contributions and expenditures over a multi-year horizon.
How a reserve fund study differs from a depreciation report
A reserve fund study and a depreciation report describe the same underlying process under different provincial names. British Columbia uses the term depreciation report, while Ontario, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, and Newfoundland and Labrador use the term reserve fund study. Quebec calls it a contingency fund study and applies its framework to divided co-ownership syndicates, a structure distinct from the condominium corporation model used elsewhere in Canada.
How reserve planning requirements compare by jurisdiction
Nine provinces require a periodic reserve fund study or its provincial equivalent; the required document, cycle, and planning horizon differ by jurisdiction, as the table below shows.
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Prince Edward Island, Yukon, and Nunavut do not currently mandate a reserve planning study. The Northwest Territories also requires periodic capital reserve fund studies, generally at least every five years, with a 25-year planning horizon; exemptions apply in certain circumstances, including some smaller condominiums.
A board relocating a portfolio, acquiring a building in a new province, or simply refreshing its own compliance calendar should treat this table as a starting point rather than a final answer, since legislation continues to evolve in several of these jurisdictions.
What a reserve fund study or depreciation report contains
A reserve fund study or depreciation report is a long-range capital budget planning document, not a one-time report a board files away and forgets. It identifies major shared assets, estimates when they will need repair or replacement, and models how the fund could pay for that work. A structured reserve process gives a board a repeatable approach at each renewal, rather than starting from scratch.
Physical and financial analysis
A physical evaluation and a financial analysis together make up a reserve fund study or depreciation report; Ontario’s regulation splits the two explicitly, and most other provinces follow the same structure.
The physical inventory covers building structure, roofs, doors, windows, skylights, common amenities, and electrical, heating, ventilation, air conditioning, plumbing, fire protection, and security systems, recording each item’s age, remaining service life, and replacement cost.
British Columbia requires an on-site visual inspection with component service lives projected over 30 years; Ontario captures items expected to need major work within that same 30-year window above the regulation’s cost threshold. Boards may supplement this with separate building condition assessments, particularly for older buildings with incomplete construction records.
The financial analysis states the current reserve balance, the interest and inflation assumptions used, and a projected funding plan over the required horizon. British Columbia requires at least three cash-flow models over 30 years, each starting from the balance minus already-approved expenditures. Since November 1, 2023, British Columbia (BC) strata corporations and sections have been required to annually contribute at least 10% of the operating budget, a floor most well-run corporations already exceed.
What this means for property owners
Reserve fund study findings affect individual owners directly, not just the corporation’s books. Underfunded reserves typically translate into higher monthly contributions, greater special assessment risk, and disclosure obligations that surface when a unit goes up for sale.
Buyer disclosure
Reserve shortfalls can surface during a sale. Ontario status certificates include prescribed information about the corporation’s financial position, reserve fund, and certain assessments; buyers should review the certificate together with the current budget, financial statements, and reserve fund materials. British Columbia’s Form B, the standard information sheet a seller provides a buyer, must include the most recent depreciation report if one exists.
Funding consequences when a reserve is inadequate
If a reserve fund is insufficient when major work comes due, a corporation may need to raise contributions, levy a special assessment, borrow, defer the work, or combine those approaches.
None of these options is free: contributions strain household budgets, an assessment lands as a lump sum, borrowing carries interest, and deferral makes the eventual repair more expensive. Ontario’s Auditor General, in its 2020 audit findings, found that 69% of condominiums registered between 1980 and 2000 lacked adequate reserve funds, requiring average contribution increases of 50% to correct.
A more recent CAO survey report from the Condominium Authority of Ontario (CAO), published September 2024, gathered data from 724 respondent Ontario corporations and found that 16% had issued a special assessment between 2018 and 2023 (the report notes limitations in its sample size and representativeness).
Deferred building maintenance can compound these costs further, since the price of a repair rarely stays flat while a board debates whether to act. Reserve fund studies are one input boards commonly use in broader capital planning.
Who can prepare a study, and what British Columbia and Ontario require
Many jurisdictions prescribe qualifications or require a qualified professional to prepare a study, though the permitted credentials and exemptions vary from one province to the next. British Columbia and Ontario illustrate two different approaches, and a board operating in either province should confirm a preparer’s standing before engaging them, not after the study arrives.
British Columbia’s preparer requirements
Effective July 1, 2025, British Columbia limited depreciation report preparation to six professional groups: professional engineers, architects, applied science technologists, accredited appraisers, certified reserve planners, and professional quantity surveyors.
As of October 27, 2025, the province expanded eligibility within those same categories to include professional licensee engineers, architectural technologists, and certified technicians, without changing the six underlying groups.
The report must disclose the preparer’s qualifications, liability insurance, and any relationship to the strata corporation, so a board can confirm independence alongside the findings.
Ontario’s study classes and review timeline
Ontario recognizes three classes of reserve fund study under its condominium regulation. A corporation must obtain the initial comprehensive study within one year of registration, with a site inspection.
Later studies alternate between an updated study based on a site inspection and an updated study based on records verification and interviews, at least every three years, so a full physical re-inspection happens on a regular schedule even between comprehensive studies.
After receiving a study, the board must review it, propose a funding plan, and notify owners and the corporation’s auditor within the regulatory timetable, then bring the reserve into compliance with the funding requirements the Condominium Act sets out. Ontario also requires study preparers, including engineers, architects, accredited appraisers, and certified reserve planners, to carry liability insurance of at least $1,000,000 per occurrence.
How boards prepare for a reserve fund study
Boards prepare for a reserve fund study by assembling existing records, scheduling the site inspection, and confirming which professional credentials their jurisdiction requires before engaging a preparer. Gathering prior studies, warranty documents, and recent repair invoices in advance shortens the site visit and improves the accuracy of the component inventory. Reviewing the current reserve balance and any planned expenditures beforehand also helps the preparer build an accurate funding plan from the outset.
Confirming requirements for a specific building
Reserve fund study and depreciation report rules differ by province, but the underlying goal is the same: giving a board a documented basis for setting contributions and planning major work. Rimkus provides building condition assessments and capital replacement planning to support that process, and can help a board confirm which jurisdiction’s rules apply to a portfolio that spans more than one province.
Contact us to discuss reserve fund planning for a condominium or strata property.
Frequently asked questions about reserve fund studies in Canada
What is the difference between a reserve fund and an operating fund?
Reserve funds pay for future major repairs and replacements, while operating funds cover day-to-day recurring expenses such as utilities, insurance, and routine maintenance. Corporations generally keep the two in separate accounts to help reduce the risk of spending long-term capital on current operations.
What can owners look for when reviewing a reserve fund study or depreciation report?
Owners can generally compare the recommended versus actual reserve balance and monthly contributions, then identify major projects scheduled within the next three to five years. Checking whether current balances track the study’s recommended targets can help owners gauge special assessment risk.
Who is typically qualified to prepare a reserve fund study or depreciation report?
Many provinces prescribe a defined list of credentialed professionals, commonly including engineers, architects, accredited appraisers, and certified reserve planners, though the specific list and any independence requirements vary by jurisdiction. Smaller corporations in some provinces may qualify for exemptions or self-study pathways.
This article is intended to provide general information and insights into prevailing industry practices. It is not intended to constitute, and should not be relied upon as, legal, technical, or professional advice. The content does not replace consultation with a qualified expert or professional regarding the specific facts and circumstances of any particular matter.