Love them or hate them, depreciation reports are critical documents essential to strata corporations and properties. They outline the current condition and long-term maintenance needs of a building’s joint assets, such as the roof, plumbing and elevators. The report assesses the building’s condition, estimates the remaining lifespan of its components and projects future repair and replacement costs over 30 years.

B.C.’s mandated change

In April 2024, British Columbia’s provincial government enacted additional regulations regarding obtaining these reports, forcing strata councils and owners to stop burying their heads in the sand and ignoring the need for future planning.

Effective July 1 this year, depreciation reports have become mandatory for any building larger than five strata lots. These reports will also need to be updated on a five-year cycle. Strata corporations can no longer opt-out via a three-quarter vote at an annual or special general meeting. There will be a grace period for allowing the completion of these reports, depending on where the building is located within the province.

Impact of the changes — a surprise for some

What does this mean for owners, buyers and sellers? Some might see the changes as bad news, but the pros outweigh the cons.

“These reports are a great tool in a strata corporation’s toolbox for planning their budget and repairs for the next several years,” comments Pam Zak, vice president of management services at Tribe Management.

For many, these new regulations may have come as a surprise. But those working directly with strata corporations saw the changes coming.

“The recent changes weren’t a surprise for our clients,” Zak adds. “We announced it well in advance, so our portfolio of properties has been well prepared for the new requirements. We received very little negative feedback from clients regarding the changes.”

Two reports go hand in hand, creating some cost savings

With the growing demand for electric vehicles (EVs) and the move away from gas-fired appliances in B.C., the new legislation now requires strata corporations to conduct electrical planning reports to assess their building’s electric infrastructure capacity and the depreciation report.

The electrical planning report intends to provide the strata with an overview of its current electrical capacity and what changes might be needed to upgrade that capacity, including items such as heat pumps and EV charging.

Mack Grigg, project manager with Sense Engineering, notes that these two reports go hand in hand. He says there’s a crossover between the electrical and HVAC equipment that needs to be captured in both a depreciation report and an electrical planning report, so it makes sense for buildings to do both reports simultaneously, which results in some cost savings.

“A depreciation report can be overwhelming for the average homeowner. They’re long and complex,” adds Mack.” That said, an executive summary of a high-level snapshot of the report should be provided, which we find quite helpful for owners. It makes for an easy entry into reading these lengthy reports.”

Cost increases can occur for those who budget according to report recommendations

Although change can be difficult for owners, buyers and sellers, these stricter requirements can be beneficial in the long run. While these changes have perceived downsides, such as potential for increased fees, Zak meets with her team and has not heard of significant increases overall — but that could be different for those who choose to budget according to the report’s recommendations.

Key advantages

The three key advantages of these reports for owners and sellers are financial preparedness, property valuation and sustainability.

When it comes to strata corporations themselves, the reports bring many advantages by helping them plan long-term repairs and upgrades, which can help prevent unexpected expenses for capital projects. They also provide various funding models so owners and buyers know what to expect for expenses down the road. Unlike in other provinces, British Columbian strata corporation owners still have the option of how they want to fund these projects.

Well-maintained buildings with updated reports attract potential buyers by offering transparency on the state of the building and what repairs should be expected in the future, barring unforeseen events. As many buyers look for well-run complexes, future maintenance costs and the building’s financial health can help maintain or increase property value.

Sustainability is at the forefront of real estate. Electrical planning reports ensure building managers know the electrical systems and their capacity. Owners and buyers will know if the building is ready for EV charging infrastructure or what changes need to be made to support the increased demand for more sustainable environmental solutions.

The recent changes to depreciation reports in B.C. represent a significant step forward for property owners and buyers. These updated regulations promote proactive and long-term planning in the real estate market by ensuring that buildings are better maintained and financially prepared for future repairs. In the long run, the enhanced focus on proactive maintenance and informed decision-making will benefit everyone involved.

With over 75 per cent of tenants worldwide reporting that rising rents have negatively impacted their quality of life, property managers have the opportunity to differentiate themselves by offering competitive rates and using technology to enhance tenant satisfaction and loyalty.

Capterra explored this through its global survey across 12 countries, with 4,800 tenants, including 400 respondents from Canada, to understand their experiences and perceptions. The results reveal a complex mix of factors influencing the short-term rental market, including rising rental costs, neighbourhood disturbances and tenant satisfaction issues. They also highlight the need for property managers to adopt new technologies and property management tools to improve the tenant experience, especially in the face of external factors driving rent increases.

Rising rents due to short-term rentals: A worry for over half of tenants

Globally, 51 per cent of tenants are concerned about rising rental prices due to short-term rentals, with the same sentiment reflected in Canada.

Among Canadian tenants familiar with the issue, 44 per cent believe short-term rentals have significantly driven up local rent prices.

High rent dissatisfaction in Canada

Globally, 34 per cent of tenants are challenged by high rental costs, while 36 per cent express dissatisfaction with their current rent — a number that’s even higher in Canada, with 39 per cent of tenants unhappy with how much they pay for rent.

Additionally, 76 per cent of tenants globally agree that rising rents have negatively impacted their standard of living. These numbers underscore the need for property managers to foster strong, long-term relationships with tenants through transparent communication and fair pricing strategies.

Impact of short-term rentals on neighbourhood dynamics

30 per cent of tenants globally report noise issues due to short-term rentals, while 29 per cent mention parking problems and 24 per cent express safety concerns. Furthermore, 23 per cent have observed changes in neighbourhood character.

The report suggests that property managers should adopt community engagement strategies to address these issues, helping to build a sense of community and improve tenant satisfaction.

Other key findings

The report also cites that 40 per cent of tenants worldwide support rent control, while 30 per cent favour discounts for timely payments to combat rent inflation. As well, 31 per cent of tenants are willing to pay higher rent for properties equipped with home security systems.

How property managers can strengthen neighbourhood communities

The report goes on to suggest six things property managers can do to strengthen their communities:

1. Enhance security. Install security systems, surveillance cameras and access controls to improve safety and foster a community watch culture.

2. Address congestion. Implement traffic calming measures and develop designated parking spots to reduce congestion.

3. Minimize noise disturbances. Enforce quiet hours and invest in soundproofing to address tenant concerns about noise.

4. Improve waste management. Ensure regular trash collection and provide recycling and waste disposal facilities.

5. Preserve neighbourhood character. Engage tenants in beautification projects and community events to foster neighbourhood pride.

6. Build community ties. Partner with local businesses, organize community service projects and promote diversity and inclusivity to create a welcoming environment.

Review the full report here.

Understanding insurance needs can be daunting for any small and medium-sized enterprise (SME). Yet as SMEs contend with an evolving landscape marked by economic fluctuations, technological disruptions and heightened regulatory scrutiny, having a robust insurance strategy is crucial to maintaining stability and peace of mind. 

This is particularly true in the real estate industry. In fact, according to Innovation, Science and Economic Development Canada, over 99 per cent of businesses in real estate and rental and leasing are small businesses. To safeguard against uncertainties, it’s crucial to identify specific risks that could jeopardize their operations and seek appropriate, tailored insurance solutions to protect their bottom line.

Unique challenges faced by real estate SMEs

Real estate SMEs operate in a highly competitive and often unpredictable environment. From property management firms to small-scale developers, the risks are diverse — ranging from monetary or reputational harm, they can significantly impact a business’s bottom line. 

For instance, a property manager might be forced to face legal action if a tenant damages a property and the screening process had been inadequately performed. Imagine a scenario where the property manager overlooks the tenant’s previous eviction history during screening. The tenant subsequently causes extensive damage, leading to costly repairs and lost rental income. The property owner then sues the property manager for negligence, claiming that the manager should have identified the tenant’s past issues during the screening process. 

Such situations underscore the importance of having insurance that appropriately addresses highly specific risks. However, knowing which ones you face can be a challenge, and working with an insurance professional who has specialized knowledge and experience in risk assessment is always a good place to start. 

Essential insurance solutions for property managers

Considering the various risks that can jeopardize their operations, property managers operating on tight budgets may see insurance as an expense rather than a necessity, overlooking its importance for business continuity.

Essential coverages for property managers can offer security by mitigating risks that could disrupt operations and stunt future growth:

• Directors and Officers (D&O) Insurance. Protects the personal finances of directors and officers from legal challenges arising from their decisions, offering crucial protection for company leadership.
• Errors and Omissions (E&O) Insurance. Protects professionals whose business decisions may lead to errors, omissions, neglect or breach of duty while providing services resulting in third-party claims.
• General Liability Insurance. Protects against claims of bodily injury, property damage or personal injury that occur within their office premises.

Customized insurance solutions: A necessity, not a luxury

Every industry has its own unique risks, and the real estate industry is no exception — whether it’s residential property management, commercial real estate or development. That’s why working with an insurance professional who understands the specific challenges of the industry can help tailor a policy package that fits a business best. 

One common challenge SMEs face is limited resources. When it comes to insurance, most SME owners don’t have the bandwidth to explore every option available, and this can lead to difficulty in finding comprehensive coverage that properly protects them from a range of exposures.

To address this need, the insurance industry is developing new inclusive policy packages — offering combined policies that are customized for small businesses. This can make it easier for SMEs to manage various areas of coverage and enhance their ability to proactively control risk.

In response to the specific needs of SMEs for a single insurance policy, many are seeking “insurance packages” that combine various coverages into one, including E&O liability, general liability, contents, cyber and legal coverage together, simplifying the management of insurance needs for small businesses.

Balancing affordability with adequate protection and a reliable contact point

Cost is always a concern for SMEs. However, it’s essential to balance the need for affordability with the need for adequate protection. Cutting costs by reducing coverage can lead to vulnerabilities that may be far more costly in the long run. Instead, SMEs should look for insurance providers who offer competitive pricing without sacrificing the quality of coverage. 

Lastly — and perhaps most importantly — having a reliable point of contact during the claim process will help ease the pressures faced by SMEs throughout that time. This fosters trust and facilitates more seamless solutions when an incident arises so that SMEs can focus on what matters most: their business. 

Embracing technological advancements  

Brokers act as a lifeline for SMEs, providing them with products, services and experiences based on the risks they’re exposed to. As the insurance space adopts new technology, brokers can now utilize user-friendly digital portals to better assist real estate SMEs in a timely and efficient manner.

These portals offer real-time quotes and policy issuance, available around the clock, enhancing satisfaction and ensuring that clients can purchase insurance policies at their convenience.

Insurance plays a vital role in risk management for SMEs in the real estate industry. Understanding insurance products and utilizing technological advancements can greatly simplify the process of acquiring comprehensive coverage. Staying informed, leveraging technology and prioritizing comprehensive coverage will help real estate SMEs protect their bottom line and build a resilient business for the future.

Realtors and property managers. A duo that blends as well as oil and vinegar. Both parties bring specialized skills and knowledge to the table, and when these are effectively combined — just like vinegar and oil — the result is something special.

But can realtors and property managers really get along? By understanding common challenges and implementing simple strategies to overcome them, realtors and management companies can build happier, more productive relationships that benefit everyone involved: realtors, property managers and their clients.

Limitations of property managers

“We want to help realtors, but sometimes we’re limited by what we can actually do,” says Katharine Olson, associate broker at FirstService Residential in Vancouver. “I’ve had instances where a realtor has promised prospective buyers renovation approvals. As much as we’d like to help, strict regulations in British Columbia limit what can be done before a buyer becomes an owner.”

But who is responsible for that? Many times, it’s assumed that the property manager has more power than they do. This assumption leads to misunderstandings, inefficiencies and client dissatisfaction. Confusion often stems from a lack of clarity about the roles and responsibilities of management companies in a specific market. For example, in B.C., the management company is only obligated to the owner or their representative — strata managers can’t provide information or approvals to prospective buyers.

Understanding role nuances goes beyond legislation: Tips for realtors

David Locke, vice president of business development and managing broker at Duka Management, emphasizes that understanding the nuances of these roles goes beyond mere legislation.

“While realtors should familiarize themselves with the relevant laws in their market — like the Strata Property Act in B.C. and the Condominium Act in Ontario — issues often arise from not understanding the building and its intricacies,” he comments. “A quick overview of the building and its documents, if available before listing, goes a long way in avoiding conflict and ensuring happier clients.”

Locke advises realtors to know the bylaws and rules of the building they’re dealing with. “Respecting the bylaws and rules builds goodwill and a potential client pool,” he says. He also notes that Metro Vancouver developments are becoming increasingly complex.

“Buildings are much more complicated now than even 10 years ago,” Locke adds. “I’m always happy to help realtors navigate them, provided they’ve read the documents first.”

Mike Heddle, broker at Heddle Real Estate, adds that avoiding assumptions about a building based on others and having a systematic process for listings is crucial for success, along with solid communication. Heddle notes that he opens the lines of communication at the start of the sales process and aims to keep the property manager in the loop the entire time, from listing to closing.

Proptech: Meant to streamline but can cause delays in getting answers

Just like any good relationship, communication is the cornerstone for success. Thanks to the multitude of proptech in the real estate market, communication lines between realtors, owners, clients and property managers have been streamlined. But maybe too much.

Many companies have adopted online portals for ordering the documents needed during a sales transaction, offering convenient timelines and various document options. While this is meant to streamline the process, there comes a time when a realtor might need clarification on a point, and this is where problems arise. Realtors frequently face frustration when their calls and emails go unanswered for days or aren’t responded to.

“It’s no surprise that’s a complaint,” Olson notes. “In a year, I can get over 10,000 emails and phone calls from one building alone, and agents here tend to have six to eight properties each. That’s a lot of correspondence. My preference is always email, with clear and concise questions.”

How to help property managers help you

A quick scroll through LinkedIn results in dozens of posts about emails and the sheer amount of them: getting the best results from a property manager means knowing how to reach them. Olson adds she appreciates when realtors take the time to structure the email in a way she can quickly answer it — clear subject line with the property, point form questions and a timeline she can work with (at least a couple of days).

Knowing who the questions should go to is vital in many situations. She further adds that it might be quicker to call the building staff directly for simple questions about daily operations instead of the strata manager.

While it looks different for each party, realtors and property managers are working towards the same goal: client satisfaction. Understanding common challenges and implementing minor changes would easily make the relationship less contentious. Could realtors and property managers actually get along? Yes!

In recent years, the concept of “home” has taken on new meaning as a hub to live, recharge, work and play. That’s why residential communities have become even more appealing. They provide residents with convenient services and shared amenities that enhance community spirit and bring this modern concept of “home” to life.

However, managing such communities is an increasingly complex task, and this is where our industry has had to evolve to better serve our customers. 

More than just rule enforcers

Council/board members in residential communities play a crucial role in making essential long-term decisions to enhance property values and support resident well-being. Yet, as volunteers, they often lack the time and expertise required to handle the many aspects of community management.

That’s why today’s property management companies are more than just rule enforcers. The best of them build teams with diverse skills ranging from hospitality to technology, insurance, financial, operations, sustainability, training and development — not to mention expertise in complying with rapidly evolving regulations, at the federal, provincial and municipal levels. 

Professional insurance advice

For example, property insurance availability and premiums are important factors impacting condominium corporations and stratas. More than ever, council/board members need expert advice to secure the coverage they need.

Property management companies can play a crucial role by offering a team of insurance professionals to consult council/board members, even in evolving and volatile markets. These teams work with the goal of securing improved coverage to help corporations achieve savings in premiums, bringing peace of mind to councils/boards and residents in a shifting insurance environment. 

EV charging

Another example is EV (electric vehicle) charging, which is becoming an expectation and an essential utility. Communities are looking for guidance and support to update their electrical and parking infrastructure, so they provide that amenity in a sustainable, easy-to-manage and cost-effective manner.

Property management companies need to be equipped with the resources, relationships and expertise to deliver custom solutions for each community. 

Expert guidance to drive energy savings & comply with new regulations

When it comes to sustainability in general, properties need expert guidance to drive energy savings and to comply with new regulations. This requires market-level experience to leverage local incentives and secure funding for extensive capital projects.

For example, a 500-unit condominium community in Toronto recently implemented an extensive energy-saving capital project. Their property management team identified a Save on Energy incentive program called BizEnergySaver, which offers substantial incentives for installing LED and lighting control upgrades, parking garage exhaust fan controls and variable frequency drives. After applying for the program, the community secured $35,000 in incentives, so the capital cost was dramatically reduced from $51,000 per year to $17,000. 

Technology: An essential tool to the business

While our business is about relationships, technology is also an essential tool that can save time and improve the resident experience. Each community has unique needs and requires custom technology solutions to operate seamlessly — from security to package management and reserving amenities to managing billing.

In Vancouver, for example, communities are simplifying operations with technology designed to reduce emails and provide owners and residents with quick answers to general inquiries on accounts and payments, maintenance, document requests, strata lot renovation requests and more. This tool immediately reduces the time managers spend on recurring questions so they can focus their time engaging with strata councils/boards and residents, providing thoughtful service and support. 

Education investment: Key to setting up the new generation for success

As I think about the future, I’m excited to see a new wave of homeowners taking on leadership roles in their corporations. In markets such as Vancouver, more first-time homebuyers are moving into high-rises and joining their strata councils/boards.

To set this new generation of strata council/board members up for success, property management companies must invest in council/board education programs to develop their skills. That includes dedicated webinars, training and continuing education to help both new and seasoned council/board members learn and navigate change.

Good property managers, including those working with developers, need a varied team of experts

These examples support my view that a good property manager always has a team of experts in different fields to offer comprehensive solutions. That means providing council/board members with resources to make decisions that put residents and owners’ interests first.

This also applies to property management companies working with developers. Each developer has a unique vision for their community and the resident experience. The property management company can set the developer and residents up for success from the initial planning stages to the eventual transition to the condominium council/board.

As the industry evolves, property management needs to be about simplification. By providing expertise, anticipating needs and offering innovative solutions, our industry needs to make life easier for council/board members, developers, residents and property management teams alike. 

It’s clear that professional property management will continue to play a vital role in creating thriving, harmonious communities that residents are proud to call home, however they choose to define it.

Century 21 Assurance Realty Ltd. of Kelowna, British Columbia recently announced its launch of a new property management division.

The brokerage says this expansion aims to provide comprehensive real estate services to Okanagan Valley area investors and property owners, enhancing the overall client experience and ensuring the highest standards of property care and tenant satisfaction.

With over 85 properties under management so far, the division offers a full suite of services, including tenant screening, lease administration, rent collection, property maintenance and financial reporting.

“We’re pleased to introduce the launch of our property management division which represents a significant milestone in our company’s growth and evolution,” says Max Carbone, partner, Century 21 Assurance Realty Ltd. “This expansion allows us to offer a broader range of real estate services to our clients. We look forward to delivering exceptional value, service and expertise through residential, property management and commercial real estate sectors.”

Kim Davies joins as new managing broker of property management & commercial

Kim Davies recently joined Assurance Realty as managing broker of property management & commercial, bringing experience and expertise in property management, and residential and commercial real estate.

She says, “Century 21 Assurance Realty is a company built on a strong foundation of care. Care for each other, care for our clients and care for those that we work with every day. I am excited to lead the property management and commercial divisions and help our clients achieve their real estate goals with confidence and success.”