Free quote
Free quote

Why should a body corporate’s 10-year maintenance plan be kept updated?

Having a 10-year maintenance plan for your body corporate is a requirement by law. A sectional title maintenance plan assists trustees with keeping all buildings and common property in a good state of repair, as this secures and safeguards the owners’ property investments.

What are the requirements of the STSM Act?

The Sectional Titles Schemes Management (STSM) Act specifies that major capital items, such as exterior painting, waterproofing, roof replacement, security system upgrades, driveway renovations, modernising elevator cabs and upgrading to energy-efficient lighting, must be included in the scheme’s maintenance plan.

The Act also specifies that trustees must report on the 10-year maintenance plan at each annual general meeting (AGM). This report keeps all owners abreast of planned maintenance work and its associated expenses.

What should a 10-year maintenance plan look like?

Unfortunately, the STSM Act does not provide much guidance on the ideal architecture and content of the maintenance, repair and replacement plan (MRRP). The onus is on the trustees to decide for themselves how much detail they want in their body corporate's plan. Naturally, this will result in one body corporate’s maintenance plan differing from the next body corporate’s plan.

How to calculate capital expenditure contributions

The goal of the MRRP is to make provision for the future replacement costs of capital expenses. This is how you calculate capital expenditure contributions for a 10-year maintenance plan:

Estimated Cost – (minus) Past Contribution / (divided by) Expected Life.

[Estimated cost = The estimated cost to maintain, repair or replace a major capital item.]

[Expected life = The estimated number of years before a major capital item will need maintenance, repair or replacement.]

In order to calculate future replacement cost, one must first review all past contributions per capital item and then consider the anticipated cost escalation in the future.

Why must the 10-year plan be updated regularly?

An updated plan helps trustees to plan ahead, allowing them enough time to obtain various competitive quotes for maintenance work, and to scrutinise each supplier properly.

With an updated 10-year plan, maintenance works are less likely to fall through the cracks and the scheme’s cashflow projection will always be accurate.

What happens when a 10-year plan is not updated?

If trustees fail to keep their 10-year plan updated, the scheme will suffer from poor financial management, which may lead to incorrect levy calculations and a lack of available funds for planned and emergency maintenance work.

A well-constructed 10-year maintenance plan that is updated regularly will make a noticeable difference to any sectional title scheme, and help trustees to comply with their fiduciary duty.

Why should a body corporate’s 10-year maintenance plan be kept updated?


What the sectional title law says about valuations


Escalation of Buildings Insurance


When an insurance policy is due for renewal, many financial advisors will recommend a fixed annual escalation rate of 10%, sometimes even 15%. Does this reflect reality? What if the original sum insured was incorrect to begin with?

Trustee liability in the event of underinsurance


How the lack of an insurance valuation leads to averaging


Without an updated insurance valuation, you could find yourself being underinsured and facing averaging by your insurer. As a trustee, you have a fiduciary duty to obtain an updated insurance valuation to ensure adequate insurance cover.

Trustees made to pay out of their own pocket


How to create a secure financial roadmap for your body corporate


Why it is critical to keep your sectional plans up to date


What managing agents expect from service providers: Insights from Mirfin’s customer survey 2020


How to achieve financial prosperity in a body corporate


Trustees need to know this!


How to calculate your community scheme levy


Setting levies without bias


How accurate is your 10-year maintenance plan?


The real reason for 10-year plans


What happens when a valuer gets it wrong?


Why the Reserve Fund budget plays a critical role in the 10-year plan


It’s AGM Season: Is your building’s replacement value updated?


How to save insurance costs without losing cover


How to determine a building's insurance value


How to Allocate your Maintenance Costs: Part 2


Market value and replacement cost: Comparing apples to oranges


Lockdown Desktop Valuations - 50% off


How to spot a fraud


Selecting the right valuer for your scheme from a sea of chancers can be challenging. In this blog, we offer guidance on how to spot the doers from the duds.

How to Allocate your Maintenance Costs: Part 1


Why you don't need three comparative quotes for your next valuation


10-Year Maintenance Plans for Sectional Title Schemes: What you need to know.


Why it is wrong to insure the market value of your house


How we assess a building's replacement cost


Much like insurance, having your building professionally valued may feel like a grudge purchase. However, when your claims are processed in record time and the entire amount claimed is paid out, you will be very happy you did!

The true price of a cheap insurance valuation


Why the schedule of replacement values is important


Retaining walls - the risk explained (Part 1)


Retaining walls - the risk explained (Part 2)


Checklist for Insurance Valuations


Attention: Short-Term Insurance Brokers


Experience has taught us that approximately two thirds of all residential homes and contents are underinsured by between 20 - 50%. The reality is that very few property owners are correctly covered.

Contents valuation: Moveable Assets Registry (Part 2)


Contents Valuations: Moveable Asset Registry (Part 1)


How to object to your municipal property valuation


How to insure owner-installed upgrades in sectional title units


How to budget for a valuation and compare quotations


With the Sectional Title Schemes Management (STSM) Act activated in October 2016, sectional title owners need to have insurance valuations done every 3 years. We look at how to go budget for this expense and the factors one must keep in mind when selecting a valuer. The key words are: professional indemnity insurance.



Capetonians beware: Rates increase approaching!


Municipal rates in Johannesburg – have you checked your property values?


Common customer complaints


This blog comprises a number of typical customer complaints that we deal with on a regular basis. Along with these complaints, we include our responses for easy reference and insight into common insurance valuation matters.