Products

10-Year
Maintenance Plan

The Mirfin method

Our service is based on a light inspection of the common property and an approximation of maintenance costs in accordance with the apparent condition and estimated useful life of the major capital assets. The objective is not to achieve an accurate 10-year plan from the onset, but to have a reasonable estimate of the reserves required for the preservation of the combined capital assets. Accuracy can only be gained over time through ongoing adjustments in accordance with actual expenditure and contributions.
The 10-year maintenance plan is, therefore, a “living” document that must be continuously adapted to the scheme’s specific needs and financial capability. The Mirfin Dashboard offers a free cash flow planning tool for both the reserve and administrative funds. This requires the client’s input and forms the basis for reserve fund forecasting and levy calculations

Click the video links below to learn how.

Important:

The community scheme’s appointed representatives are best suited to schedule maintenance activities in accordance with the scheme’s financial capability. A capital asset’s remaining useful life cannot be accurately predicted as there are many factors that can delay or accelerate its deterioration.

For a full-scale building audit that will reveal structural defects, rising damp, exposed asbestos, roofing and guttering problems, plumbing and electrical issues and the existence and damage of termites and borers, it is essential to engage the services of a specialist contractor.

Preventative maintenance

Long-term planning

If you are invested in a community scheme, you will want your investment to be protected at all times. This is achieved through proper maintenance and insurance as part of the trustees’ fiduciary duty to the body corporate. However, many community schemes fall short of their long-term planning requirements.
Prescribed Management Rule no. 22 of the Sectional Title Schemes Management Act calls for better financial management of body corporate finances to avert the need for special levies. A well-maintained scheme with sound financials attracts prospective buyers more easily and positively influences the market value of all units in the scheme.
Planning ahead for regular maintenance allows for time and finances to be managed more effectively. Regular maintenance is less onerous and the costs can be spread more evenly over time. Preventative maintenance is more cost-effective in the long term than emergency repairs.

Get 25% off the standard valuation fee when ordered together with the 10-year maintenance plan.

Reserve fund

A maintenance, repair and replacement plan for the major capital assets is essential to planning the reserve fund contributions and cash flow. The 10-year plan must be adjusted regularly in accordance with actual contributions and expenditure. Examples of reserve fund expenditure include exterior painting, waterproofing, roof replacement, security system upgrades and driveway renovations.
Operational expenses such as replacing light bulbs or repairing a faulty gate motor are allocated to the administrative fund. Therefore, these are excluded from reserve fund planning. The minimum annual reserve fund contribution is determined by the ratio between the reserve fund balance and the administrative fund contributions.

What does the law prescribe?

The Sectional Title Schemes Management Act No. 8 of 2011 (STSMA) aims to improve the management of bodies corporate and consequently, the shareholder value for individual members. It is prescribed that –
A body corporate or trustees must prepare a written maintenance, repair and replacement plan for the common property, setting out

(STMS Act. No. 8 of 2011, rule no. 22.1)

The reserve fund maintained in terms of section 3(1)(b) of the Act must be used for the implementation of the maintenance, repair and replacement plan of the body corporate referred to in rule 22.

(STMS Act. No. 8 of 2011, rule no. 24.2)