Average special levy amount in BC (2023)
Of special levies could have been predicted
Months average advance warning signs
According to the BC Strata Property Act, strata corporations must obtain a depreciation report every three years for buildings with five or more strata lots. Despite this requirement, many buildings still face unexpected major expenses.
Our analysis of over 1,000 BC strata documents reveals that 73% of special levies show warning signs 12-24 months before they're approved. The problem? Most buyers and even some realtors don't know what to look for.
💡 Key Insight:
Special levies aren't random disasters—they're often the predictable result of deferred maintenance, inadequate reserve funds, or aging building systems. The clues are in the documents.
What to look for: A Contingency Reserve Fund (CRF) balance that's decreasing year-over-year, especially if it's below 25% of the annual budget or represents less than $1,000 per unit.
🚨 Red Flag Example:
"CRF Balance 2022: $180,000 → 2023: $125,000 → 2024: $89,000"
This 50% decline in two years typically means major expenses are coming.
Why this matters: The BC government requires strata corporations to maintain adequate reserves. When these funds are depleted, special levies become inevitable.
What to look for: Depreciation reports showing multiple high-cost items (roof, elevator, parkade membrane, boiler) with remaining useful life of 2-3 years or less.
⚠️ Warning Example:
Pro tip: Look for the "clustering effect"—when expensive components were installed around the same time (like during initial construction), they often fail around the same time too.
What to look for: Meeting minutes mentioning frequent "emergency" or "urgent" repairs, especially water damage, heating failures, or structural issues.
⚠️ Pattern to Watch:
Why this predicts special levies: Emergency repairs are typically symptoms of failing systems. When you're constantly fixing the same type of problem, full replacement becomes inevitable.
What to look for: Annual reserve fund contributions that are significantly lower than the depreciation report recommendations, or contributions that haven't increased despite rising costs.
📊 Red Flag Numbers:
Depreciation report recommends: $180,000/year reserve contribution
Actual contribution: $90,000/year
Shortfall: $90,000/year × 5 years = $450,000 deficit
The math is simple: If you're not saving enough for future expenses, you'll either face higher strata fees or special levies. There's no third option.
What to look for: Meeting minutes where council discusses "getting quotes for," "investigating costs of," or "planning for" major building improvements or repairs.
🔍 Language That Signals Trouble:
Timeline insight: From "investigating costs" to "approving special levy" typically takes 6-18 months. This early-stage language gives you advance warning.
Let Aria's AI analyze your strata documents and identify potential special levy risks before you buy.