Squamish's Strata Boom: How the New Towers Are Run

In recent years, Squamish has added strata supply at a pace not seen in earlier decades. The downtown core has seen multiple new towers complete, and the developer-appointed councils that ran them through occupancy are now rotating out. What's left behind is a wave of Squamish strata corporations all hitting the same first-cycle decisions at roughly the same time. Handover. First depreciation report. First envelope inspection. First insurance claim. We've been managing Squamish stratas since 2011, including new towers, and the pattern is consistent: the decisions made in years 2 through 5 set the trajectory for the next 30 years. This post is for the councils stepping into that window now.

What "first-cycle" really means

A first-cycle strata is one that hasn't yet been through its first major round of post-developer ownership decisions. Roughly speaking, the first cycle runs from occupancy through year 7, by which point the strata has usually completed:

• The transition from developer-appointed to owner-elected council (year 1)
• The first owner-controlled budget (year 2)
• The first independent depreciation report (year 2–3)
• The first comprehensive envelope inspection (year 4–5)
• The first major warranty claim cycle (years 1–5)
• The first significant insurance claim and deductible recovery (typically year 3 or later)
• The first major special-levy decision, if applicable (year 5–7)

Each of these milestones is something the council does for the first time. There's no institutional memory. The mistakes are often invisible until years later. Good strata management at this stage is mostly about anticipating the next decision and getting in front of it.

The developer handover, what actually transfers

Under Strata Property Act s. 16, the developer must hold the first AGM within 6 weeks after 50% of strata lots have been sold. At that meeting, the owners elect a council to replace the interim developer-appointed council. The handover transfers:

• All common property and assets (including bank accounts)
• The contingency reserve fund (CRF)
• All corporate records and minutes
• All contracts in force (service, maintenance, management)
• All warranty documentation
• The operating budget and history-to-date

In practice, the handover is rarely clean. We've seen the following patterns in nearly every Squamish new tower we've taken on:

• Incomplete records. Minutes for the developer-period council are missing or thin. Contracts are referenced but not produced.
• Understated operating budgets. The developer kept fees low during marketing; real operating costs typically run meaningfully higher.
• Deferred maintenance items. Small punch-list items that were "almost done" but never finished.
• Warranty claim backlog. Issues identified during occupancy but never formally claimed against the 2-year warranty.

A new owner-elected council should treat the handover as a forensic exercise, not a ceremony. The first 60 days after the first AGM is when problems are cheapest to surface.

The first depreciation report, the most-leveraged decision

Strata Property Act s. 94 requires a depreciation report within 6 months of the first AGM (and every 5 years thereafter). The depreciation report is a 30-year forecast of capital expenses and the funding required to meet them. It drives the CRF contribution rate, the special-levy probability, and the building's long-term financial health.

The mistake we see most often in new Squamish towers: hiring the cheapest depreciation report provider and getting a thin report that under-forecasts capital expenses. The CRF contribution rate is then set too low. Five years later, the next report raises the forecast, and the strata is faced with a special levy that could have been avoided.

A real depreciation report should:

• Include a physical inspection of all major systems (envelope, roof, mechanical, elevator, parkade, amenities)
• Build a component-by-component schedule with realistic replacement timelines and 2026-dollar costs
• Provide funding scenarios at multiple CRF contribution levels
• Be reviewed and adopted by council (not just filed)

A quality first depreciation report on a mid-to-large tower is a meaningful cost, but it's small relative to the 30-year capital-funding decisions it drives. We cover the report process in detail in our depreciation report post.

The first envelope inspection

Squamish climate is wet, coastal Pacific rainfall on the marine side, with snow and freeze-thaw cycles in winter. Building envelopes wear faster here than in drier Interior BC markets. We recommend every new Squamish tower commission a comprehensive envelope inspection at the 4-year mark, before the 5-year warranty window closes.

The inspection should cover:

• Wall assemblies and rain-screen performance
• Window-to-wall transitions and sealants
• Deck membranes and balcony waterproofing
• Roof systems and parapet flashings
• Penetration details (vents, conduits, anchors)
• Drainage and downspout systems

Findings inform three workstreams: (1) immediate warranty claims against the developer, (2) updates to the depreciation report and CRF forecast, (3) insurance documentation showing the strata is actively managing envelope risk (carriers ask).

A first-cycle envelope inspection that surfaces a defect at year 4 is recoverable under the 5-year warranty. The same defect found at year 6 is the strata's problem. The math is brutal and one-directional.

Insurance, what changes in years 1–5

New buildings get a honeymoon period on insurance, low or no claim history, new mechanical systems, code-current construction. That advantage lasts roughly until the first significant claim. Two things to plan for:

1. Master policy renewal scrutiny. After year 2 or 3, carriers begin asking about depreciation reports, envelope inspections, contractor maintenance schedules, and STR activity. Have the documentation ready.
2. The first deductible recovery. When the first water-damage claim originates in a strata lot, SPA s. 158 and s. 165 govern the deductible-recovery process. New councils often handle the first one badly, see our strata insurance post for the workflow.

Bylaws, what to adopt early

New Squamish towers typically operate on the Schedule of Standard Bylaws from the Strata Property Act for the first year or two, plus any developer-filed bylaws registered with the strata plan. Most owner-elected councils want to amend these within 12–18 months. The high-priority bylaw areas for new towers:

• Short-term rental position. Permit, prohibit, or cap. See our Squamish STR bylaws post.
• Pet rules. Number, size, breed restrictions, registration.
• Parking and storage. Assignment, EV charging policy, visitor parking enforcement.
• Noise and quiet hours. Especially in mixed-use buildings.
• Move-in and move-out fees. And damage deposit handling.
• Renovation policies. Permits, working hours, contractor insurance, sign-off requirements.

Bylaw amendments require a 3/4 vote at a general meeting under SPA s. 121, and the changes must be filed at the LTSA within 60 days. Get the high-priority bylaws done early, owner engagement drops sharply after year 3.

Council composition and turnover

The first owner-elected council in a new Squamish tower is often staffed by the most engaged early buyers, owner-occupiers, retirees, professionals with relevant backgrounds. By year 3, attendance drops. By year 5, recruiting candidates becomes a recurring challenge. Healthy long-term councils need:

• A clear governance handbook so new members can ramp quickly
• Staggered terms so the council doesn't fully turn over in one election
• A council president and treasurer with at least 18 months of overlap
• An engaged strata manager who can keep institutional memory

The contractor network, relationships matter

Squamish has limited trade capacity relative to the recent strata construction boom. Securing reliable plumbers, electricians, snow contractors, landscapers, elevator service, and HVAC techs is a year-1 priority. The patterns we see:

• Local Squamish trades book out well in advance even for routine work
• Vancouver-based trades can serve Squamish but pricing reflects the commute
• Specialty trades (envelope, glazing, elevator) have long booking lead times for major work
• Long-term contracts with local trades are worth a small premium for guaranteed response

New councils that try to bid every job competitively spend more time chasing contractors than running the building. A small portfolio of trusted trades, refreshed every few years, works better.

The 5-year financial pivot

By year 5, most Squamish new towers face a financial pivot. The depreciation report has matured, warranty windows are closing, the first big-ticket repair items are coming into view, and the original developer-set operating budget no longer reflects reality. Councils that have done the groundwork, proper depreciation report, envelope inspection, fair CRF funding rate, pivot smoothly. Councils that didn't are looking at a special levy.

Councils relying on the developer's original operating assumptions can face exposure when first-cycle costs materially exceed the projection. Independent budgeting in years 2–3 is the safer path.

Where to go from here

If your Squamish strata council is in its first cycle and you want a second opinion on your handover, your depreciation report, your insurance, or your bylaw priorities, we do free reviews for Sea-to-Sky stratas. Our office is at 6-40437 Tantalus Rd in Garibaldi Highlands, 5 minutes from downtown Squamish. We've sat at many council tables since 2011 and we manage Squamish buildings including recent towers.

For more depth on the management side, see our Squamish strata management guide, our developer handover post, and our depreciation report walkthrough. Or reach out, we'll walk through your specific building before any major decision.