Maintenance plan

The 10-year maintenance plan for Belle Aire Place

A body corporate has the responsibility to plan for the maintenance, repair and replacement of their scheme’s major capital assets.

Prescribed Management Rule 22 of the Sectional Title Schemes Management Act requires bodies corporate to draw up 10-year plans in which they estimate the total costs needed for the maintenance, repair and replacement of all the major capital assets, and to save towards the required amount.

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.

• Therefore, trustees are obliged to prepare a MRRP for the common property in writing, listing the following:
  • The major capital items expected to require maintenance, repair and replacement within the next 10 years;
  • The present condition or state of repair of those items;
  • The time when those items or components of those items will need to be maintained, repaired or replaced;
  • The estimated cost of the maintenance, repair and replacement of those items or components;
  • The expected life of those items or components once maintained, repaired or replaced; and
  • Any other information the body corporate considers relevant.

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Reserve fund

Along with the maintenance, repair and replacement plan, bodies corporate need to create and maintain a reserve fund that is used to implement the MRRP. Both the MRRP and the reserve fund forecast have to be presented at the annual general meeting (AGM) for approval by the members. It should also be amended as and when needed, keeping a record of all contributions and expenditure.

Operational expenses such as fixing a leaking tap or a defective gate motor are settled using the administrative fund. For this reason, it is excluded from reserve fund planning.

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 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).

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