Maintenance plans are a legal requirement in most states/territories and are funded and budgeted for by periodic payments made by strata property owners and allocated to a ‘Sinking Fund’. This can also be referred to as a ‘Maintenance Fund’ or ‘Capital Works Fund’, for what is essentially a legally required and extremely beneficial community savings account for property and building maintenance.
All buildings and properties require maintenance in various forms:
In Strata, community contributions to the funding of this maintenance is a fair way of ensuring that the cost of these expenses is shared over the time period the benefits of the property are being enjoyed by the owner or their tenants. A properly maintained property retains its value and ensures it remains a pleasant and safe place for its residents to enjoy.
However, in order to determine the amount that each owner needs to contribute to the fund, a well-planned and defined maintenance plan must be developed and adhered to. This is where property owners need to be informed and understand a bit more about maintenance plans and the requirements specific to their Owners Corporation and State/Territory.
Maintenance plans cover the maintenance of areas of the common property. They do not cover maintenance particular to a private lot. The definition of what is common property and private property in Strata does differ from State/Territory to State/Territory, so if you need clarification, it is best to check online for the law relevant to you or turn to your Body Corporate Manager or Committee to provide you with the information.
The requirement and management of maintenance plans is legislated in each State and Territory differently. Victoria is changing their rules effective from the 1st of December 2021. Instead of a one-size-fits-all approach, Owners Corporations will be divided into 5 tiers determined by their size. For example, tiers 1 and 2 will be required to have a 10-year maintenance plan, which is good news for all Strata property owners. Read more on this at https://www.consumer.vic.gov.au/housing/owners-corporations/property-maintenance/maintenance-plan
Unless you have been proactive, or are a committee member for your Owners Corporation, it is possible that you do not know the answer to this question. Although you are not expected to be an expert in the area, finding out more about the maintenance plan for your property is time worth spending. So how do you do this?
Do you need help with checking or creating your Maintenance Plan? Do you have questions about what your plan covers in your State or Territory? Get in contact with one of our experienced Ace Body Corporate Managers who have all the information and detail ready at their fingertips to help you.