A standard Condition Report and 10-Year Maintenance Plan will cause problems for many Strata Companies in terms of “how are we going to pay for all this now?”
We appreciate strata complexes and communities come in all shapes and sizes. Some schemes may be a mix of Commercial Retailers, Owner Occupiers and Tenants. Even the purpose of why people buy a Strata Property in the first place maybe different either to live there or for Investment. Managing property diversity, mixed with different personalities can sometimes make living in a strata community either very rewarding or challenging.
In our experience, most Strata Schemes have limited or no understanding of the present condition of their Strata Complex and have insufficiently planned for future maintenance.
The good news is in May 2020, the new Strata Titles Regulations 2019 came into effect to transform Strata’s of all shapes and sizes. Regulation 77 of the new Regulations refers to “Designated Schemes” requiring a Condition Report and Maintenance Plan.
If you are a Designated Scheme, meaning a scheme with 10 lots or more or with a $5 million dollar or greater replacement cost for building/s or improvements on the common property, then a Condition Report and 10-Year Maintenance Plan is now mandatory and must be in place by your first annual general meeting after 1 May 2021.
Condition Reports and 10-Year Maintenance Plans
A Condition Report is a list of common and personal property (Covered Items) of the strata company, that the strata company anticipates will require maintenance, repair, renewal, or replacement in the period covered by the plan. And the Maintenance Plan is a plan or recommendation for the funding of the estimated costs for the maintenance, repairs, renewal, or replacement of the covered items.
Finding Opportunities
As previously mentioned, a standard Condition Report and 10-Year Maintenance Plan will cause problems for many Strata Companies in terms of: “How are we going to pay for all this now?”. However, Home Integrity Strata have found some opportunities in these new regulations to do things better and make life easier for strata owners.
To find these opportunities we engaged with stakeholders and the best minds in the industry to establish some creative initiatives. We met with dozens of Council of Owners and Strata Managers.
Collaborated with industry leaders like Asset Reports, our Quantity Survey partners, who are geniuses in adding value. We also delved deep into the regulations from the perspective of compliance with Perth’s leading Strata lawyer, Sean McFarlane.
Time spent with experts proved to be extremely fruitful.
More than just the mechanics of a compliant report we applied our minds and developed several beneficial initiatives which reduce Strata Manager administration adds value for lot holders and can save the Strata Company money.
If you would like to learn more about our initiatives and want more than just a compliant report for your scheme, please get in touch we would love to help.
Email us at [email protected] or call the office on 08 6184 5624.
