Capital items may include roofs, waterproofing, external painting, lifts, security systems, paving, boundary walls and shared plumbing or electrical infrastructure.
HOW DOES IT RELATE TO THE RESERVE FUND?
The administrative fund covers the scheme’s day-to-day operating expenses. The reserve fund is intended to support planned maintenance, repair and replacement of major capital items.
The 10-year plan helps trustees estimate future expenditure and determine what funding should be available when the work becomes necessary.
Without a realistic plan, a body corporate may face:
- Unexpected repair costs
- Delayed maintenance
- Pressure on cash flow
- Sudden special levies
- Further deterioration of common property
WHO PREPARES THE PLAN?
The trustees are responsible for ensuring that the plan is prepared. A managing agent can assist with administration, budgeting, record-keeping and coordination.
Qualified professionals should assess technical items where specialist knowledge is required. Cost estimates should also be reviewed periodically to reflect the condition of the property and current pricing.
THE PLAN SHOULD REMAIN CURRENT
A 10-year plan should not simply be prepared and filed away.
It should be reviewed regularly and adjusted when:
- Maintenance is completed
- Building conditions change
- Costs increase
- New priorities arise
- The timing of planned work changes
Regular review helps keep the maintenance programme and reserve-fund planning aligned.
Risi-Pro supports trustees with maintenance coordination, budgeting, financial reporting and the administration of approved maintenance programmes.
Hands-on managing agent services for bodies corporate, homeowners associations and new developments.
Licensed assistance with South African home loan and mortgage applications.
Local support for South Africans abroad and international investors with property interests in South Africa.
Practical support for owners reviewing performance, finance, growth and longer-term property plans.
Property-led accounting, public officer services and specialist tax coordination through our professional partner.