This exciting addition to the strata regulations makes it so much easier to foresee expenses and have the funds ready to go when the time comes.
The 10-Year Maintenance Plan assists the Council of the strata company in planning for future maintenance expenses across a diverse group of strata management companies so that large, unexpected special levies may not have to be raised in the future. The report itself has to cover almost everything that most strata management companies will require to have repaired in the future and can be completed internally or by a qualified professional (which is our recommendation).
Jake Kneebone, one of the directors at ESM and original founder, was on the original committee for the Community Titles Advisory committee for 14 years. Jake believes the addition of the compulsory 10-Year Maintenance Plan is a long overdue initiative that will help strata companies stay on top of maintenance and repairs in an intelligent way.
Did you know?
- Carrying out a 10-Year Maintenance is a compulsory requirement for a designated strata company, but it is ideal for all strata companies to consider if this would be beneficial to you, even if it is not mandatory
- A designated strata company is a strata company with 10 or more lots, or a scheme with a building replacement cost of more than $5,000,000
- The 10-Year Plan is a guide for the setting of reserve funds to facilitate capital expenditure in the budget
- The 10-Year Plan can be completed by anyone, but ESM recommends it be carried out by a qualified builder or specialist
- Every 5 years, the 10-Year Maintenance Plan must be revised and extended to cover the next 10 years
- The first 10-Year Maintenance Plan must be submitted for approval at the very next AGM after it was drafted, which then accepted via an ordinary resolution
- It is compulsory for designated strata management companies to have this report, however, it is not a requirement to have all items on the report completed as per the recommendations of the report. Should the council of the strata company decide to delay or omit an item this can be decided on without restriction.
What is a 10-Year Maintenance Plan?
The 10-Year Maintenance Plan will assist your strata company in planning for the future expenses of the strata company. It also ensures that the owners funds are used in the most effective manner and could save owners from having to raise large special levies for unexpected costs.
Who should complete the report?
The strata company that chooses to engage a person to prepare the 10-Year Plan may decide what qualifications (if any) are appropriate to that role.
We recommend that the report be carried out by a qualified Builder, or a suitable qualified person to advise on such items.
What is included in the report?
- The common property and the personal property of the strata company that is anticipated to require maintenance, repair, renewal or replacement (other than of a routine nature) in the period covered by the plan.
- Report about the current conditions of those items.
- The estimated costs and method by which the maintenance, repairs, renewal or replacement will be performed including:
- remediation process for each item (e.g. what trade to contact).
- approximate cost for each item.
- Plan or recommendation for funding.
What’s not included in the report?
- The routine maintenance expectations such as gardening, cleaning and pest control.
- Unforeseeable events or issues that may not be visible/detectable (plumbing and electrical conditions)
Don’t worry, your Strata Company Manager will guide you along the way and work with your strata management companies specific requirements and needs to get the 10-Year Maintenance Plan undertaken at your strata property.
Exclusive Strata Management’s experienced Strata Managers can provide a variety of professional services as requested to ensure that the daily operations of your strata property run as smoothly as possible, Click here to contact us today.