New cannabis bill could see construction taking the high road
The proposed amendments to the Cannabis for Private Purposes bill that seeks to further decriminalise cannabis usage and legalise South…
The proposed amendments to the Cannabis for Private Purposes bill that seeks to further decriminalise cannabis usage and legalise South…
Christopher Gordon, University of Ghana Ghana has six designated Ramsar sites. These are wetlands designated under the criteria of the…
Adewumi Badiora, Olabisi Onabanjo University Nigeria has a very high crime rate. The Global Peace Index ranked it the worldās…
Inner city living is boosting the city residential property market and driving urban rejuvenation Inner cities. Love them or hate…
Raphael M. Kieti, University of Nairobi; Robert W. Rukwaro, University of Nairobi, and Washington H.A. Olima, University of Nairobi In…
Waterfall is closing the loop on waste Waterfall prioritises sustainability and responsible environmental stewardship as a strategic imperative, keeping the…
Introducing Helsinki EcoWood by EcoCeramic CerĆ mica. Right now, the hybrid Japandi trend is rising fast, with its calming combination of…
Flagstaff, located in the OR Tambo district in the Eastern Cape, began its existence as a trading post and essentially…
Written by Bjƶrn Laubscher
When you buy a unit in a sectional title scheme, it is important to understand who is responsible for maintaining the buildings and common property, and how the necessary funds are raised.
Community scheme maintenance requires careful planning; firstly, to ensure that there is enough money to undertake costly maintenance projects and secondly, to schedule proactive maintenance tasks that will extend the lifecycle of the more costly items.
Maintenance, Repair & Replacement Plan
The trustees are responsible to draw up a maintenance, repair and replacement plan (MRRP) for the scheme.
In the past, many schemes used to find themselves without the necessary funds to perform maintenance projects. This forced the scheme to delay larger maintenance projects, which either lead to raising a special levy to finance the project, or further deterioration if the necessary funds were not obtained.
The Sectional Title Schemes Management Act now compels schemes to have a 10-year maintenance plan in place, which estimates the total maintenance costs for each year over a period of 10 years.
An MRRP should include the following:
When maintenance projects are planned, it allows the trustees to manage the body corporateās finances more efficiently. By proactively maintaining costly items, expensive emergency repairs can be avoided and the maintenance costs are distributed more evenly over a longer period of time.
Reserve Fund Forecast (RFF)
The reserve fund forecast (RFF) is used to implement the maintenance plan. Both the MRRP and the RFF must be presented at the annual general meeting to the members of the body corporate for their approval. The maintenance plan should also be kept updated to reflect the most recent maintenance expenditure.
Note that there is an annual statutory minimum contribution to be made to the reserve fund that is based on the ratio between the reserve fund balance and the administrative fund contributions.
Operational expenses, such as fixing a leaking tap or a defective gate motor, are settled using the administrative fund.
How we can help bodies corporate
Mirfin drafts a legally compliant maintenance plan that is based on a light inspection and life-cycle cost analysis of the major capital assets. This practical and user-friendly report includes a life-cycle cost analysis, a 10-year forecast of maintenance, repair and replacement costs, as well as a corresponding reserve fund forecast and contribution schedule.
About Bjƶrn Laubscher
Bjƶrn Laubscher is Managing Director of Mirfin Valuation Services which offers professional and comprehensive insurance valuations for community schemes. A pioneering web-based quoting system takes the pain out of getting an insurance valuation quote, saving trustees and managing agents time and providing instant quotations. Visit www.mirfin.co.za
The post What you need to know about 10-Year Maintenance Plans for Sectional Title Schemes appeared first on Everything Property.
Syndicated content from Everything Property
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
On Topic ...
Joburg countryside estate booms
Tanzanian reserve offers luxury property investment
Africaās leaders in luxury market accommodation