The Sectional Title Schemes Management (STSM) Act no. 8 of 2011 stipulates that all community schemes are obliged to set up a 10-year maintenance, repair and replacement plan. The 10-year plan must be updated at least annually for presentation at the annual general meeting (AGM), however it is strongly recommended that the plan is updated more frequently.
Purpose of the 10-year plan
The purpose behind the 10-year plan is to determine a reasonable contribution by the community scheme’s members towards the reserve fund which is used for preventative maintenance works on major capital items. The long-term objective of the 10-year plan is to avoid having to raise special levies for unexpected maintenance.
It is important to keep in mind that the 10-year plan is a theoretical financial model- it is, therefore, a continuous work-in-progress and will rarely be completely accurate. However, having an up-to-date 10-year plan in place does guarantee that the body corporate will have sufficient reserves available when planned preventative maintenance is required.
The benefit of a Mirfin 10-year plan
We believe that setting up a 10-year plan for a community scheme should not be a costly or time-consuming exercise. Rather than engaging specialist contractors to quote on long-term maintenance needs, Mirfin’s 10-year plan is compiled as a maintenance forecast that is based on a light inspection, building design and layout and the surveyor’s professional experience.
Once set up by Mirfin, trustees and portfolio managers are able to tweak the 10-year plan on our online dashboard to suit the community’s scheduling preferences, technical requirements and financial viability. By interacting with the 10-year plan regularly, community schemes equip themselves with an attainable plan that promotes their financial wellbeing in the long term.
Click here to get a free quote for a 10-year maintenance plan and insurance valuation.