Ten Year Reserve Fund Report
What is a Strata Ten Year Reserve Fund Report?
Strata Inspections and a Ten Year Reserve Fund Report have become mandatory for all schemes with ten or more lots. The requirement states that anyone can do the Reserve Fund however like all reports, inspectors with a minimum qualification of a registered builder will view your property through experienced eyes and offer repair and maintenance advice that is prioritised and practical.
The legislation came into effect on May 1, 2020 and Council of Owners have until their first AGM following May 1, 2021 to have one completed.
Our team have spent extensive time and energy in developing a detailed Ten Year Reserve Fund Report including Maintenance and Repair items with specific reference to the current building condition, recommendations and advice on replacement and rectification work.
Last year we were so delighted to be awarded Finalist for the Strata Supplier of the Year 2019. We were recognised for our research into the strata industry and passion for providing a relevant and practical report in collaboration with stakeholders and follow up support post inspection.
Our service offering has been tiered to offer the right report and inspection for your property and budget. Please call us for a quote for your property and to discuss your concerns so we can email you our packages and tailor a report to suit you. If you have any queries regarding your strata property maintenance, please don’t hesitate to call Joanna Colman on 0420 699 848.
BCI WA do not carry out any repair or contract work so the report and advice provided is independent and unbiased.
BCI WA inspectors are registered builders or engineers and come with over 30 years-experience each. Our point of difference is that we offer you practical and cost-effective repair and maintenance advice and are available at any time for ongoing support. All credentials and contact information of the inspector will be provided in the report.
Why are Ten Year Reserve Funds a positive for Perth and the Strata Community?
For years Strata Managers and Owners have been maintaining strata properties in Perth. Unfortunately it hasn’t always been easy and finding funds when big ticket items require repair or replacement can be stressful and unfair. Often, a selection of owners will care for a property more than others or prioritise maintenance because they are in a position to do so. If some people can’t afford to contribute and the defect required urgent repair, the awful reality is that they may have been forced to put their property on the market. Previously, in a worst case scenario, if a new owner moved into their property and two years later the roof required replacement then they would be responsible for the special levy raised to replace it. This figure could be in the tens of thousands and the previous owner might have lived there for 20 years and never paid a cent towards the roof replacement.
The face of Perth will be renewed with this legislation and the onerous task of raising levies will be a thing of the past in five years time. Strata Manager roles have been blurred and the expectations on them have far exceeded their scope of work previously. The legislation allows them to define their role and following the daunting task of delivering and implementing the new Reserve Fund budget over the coming two years, their day-to-day management will be a lot easier.
What does the legislation say exactly?
This has been extracted from the Strata Titles (General) Regulations 2019 – R77.
(In a really small nutshell, all common property and personal property of the strata company requires inspecting and reporting on for repair, replacement or renewal in the next ten year period. From this a budget should be formed and a plan recommended for the COO’s and SM to implement).
77. Requirement to have 10 year plan
(1) For the purposes of section 100(2A)(a)(iii), the 10 year plan for a designated strata company must include the following information —
(a) the name of the strata company and the address of the strata titles scheme;
(b) the name and address of the person or persons who prepared the plan;
(c) if the strata company employs or engages a person to prepare the plan — the qualifications (if any) of each individual who prepares the plan or is involved in preparing the plan on behalf of that person;
(d) the period covered by the plan;
(e) a list of the items of common property, and personal property of the strata company, that the strata company anticipates will require maintenance, repair, renewal or replacement in the period covered by the plan (the covered items);
(f) a report about the condition of the covered items and the anticipated maintenance, repair, renewal or replacement requirements of the covered items in the period covered by the plan (a condition report);
(g) the method by which the estimated costs for the maintenance, repair, renewal or replacement of the covered items, as set out in the 10 year plan, were determined, including any assumptions underlying that determination;
(h) a plan or recommendation for the funding of the estimated costs for the maintenance, repairs, renewal or replacement of the covered items.
(2) The list of covered items dealt with by the plan must include any items of value that form part of the common property or the personal property of the strata company which, in the opinion of the strata company, should be included in the plan having regard to the maintenance, repair, renewal or replacement that it is anticipated will be required in the period covered by the plan.
(3) Without limiting subregulation
(2), the following items are items of value that may be included in the plan —
(a) roofs and gutters;
(b) walls (including retaining walls);
(e) windows, eaves, flashings, soffits and window sills;
(g) foundations of buildings;
(k) stairs and stair railings;
(l) doors and doorways (including fire doors);
(n) storage or plant rooms;
(o) fencing and gates;
(p) balconies, railings and balustrades;
(s) fire services, fire alarms and fire hoses;
(t) air conditioning systems;
(u) building and ancillary structures;
(v) utility conduits and services;
(w) garbage disposal;
(x) hot water systems;
(y) electrical systems;
(z) post boxes;
(za) security components;
(zb) swimming pools, spas and pumps or filters;
(zc) water bores and water tanks;
(zd) back flow devices and pumping devices;
(ze) car stackers;
(zf) roof access safety equipment;
(zg) solar and other sustainability infrastructure;
(zh) disability access facilities.
(4) The covered items may be itemised separately or grouped together in any way that the strata company considers appropriate.
(5) A condition report may relate to a single covered item or a group of covered items.
(6) A condition report must include such of the following information about a covered item or items as the strata company considers appropriate, having regard to the design, age and overall condition of the strata titles scheme —
(a) the date of installation, construction or acquisition (if known);
(b) the present condition or operating state (including whether working or not);
(c) the date on which an inspection was last undertaken;
(d) details of any maintenance, repair, renewal or replacement that is anticipated to be required in the period of the plan;
(e) the date or dates on which it is estimated that maintenance, repair, renewal or replacement is likely to be required in the period of the plan;
(f) details of the estimated cost of maintenance, repair, renewal or replacement;
(g) the estimated lifespan of the covered item or items once maintained, repaired, renewed or replaced.
(7) The first 10 year plan for a designated strata company must be submitted for approval at the first annual general meeting of the
Notes for this regulation:
1. Section 100(2A) requires the 10 year plan to set out the estimated costs for the maintenance, repairs, renewal or replacement of the
common property and personal property to which the plan relates.
2. Personal property of the strata company may include items like vehicles, computers, gardening or maintenance equipment and
3. A strata company that chooses to employ or engage a person to prepare the 10 year plan may decide what qualifications (if any) are
appropriate to that role.
For a copy of the entire Strata Titles Act 2019, please click on the link below:
What do we include in our Ten Year Reserve Fund Report?
Every Ten Year Reserve Fund Report is designed to meet the requirements of the Strata Titles Act and Regulations Amendment effective as of May 1, 2020. In particular, Section 76 (100 (2A) and Reg 77.
The following items will be inspected in your Ten Year Reserve Fund Report:
- Driveways, car parks (street level), garages,
- Roof structure and fire walls where requested,
- Communal entertaining areas,
- Foundations of building,
- Paintwork and aesthetic features of building,
- Paving, tiling, and rendered surfaces,
- External brickwork,
- Rooftops, gutters, down pipes, valleys, flashings, flues and ridges,
- Verandas and patios of common areas and external boundary,
- Retaining walls, fences, both perimeter and internal,
- Pools, spas, saunas, gyms, community halls,
- Floors, internal and external,
- Windows, eaves, window sills,
- Storage and plant rooms, post boxes and garbage disposal,
- Balconies, railings and balustrades,
- Lifts, ventilation, air conditioning, utility services, solar, security systems and water pumps will be checked where possible for working order and the make, model and date of installation with service / maintenance advice,
- Detached structures, such as bin rooms and reception areas,
- Non-structural items,
- Landscaping, reticulation and external paving.
In the event you accept our proposal we contact a nominated person to discuss the property history and current concerns prior to commencing the inspection.
What you can expect to know from your Ten Year Reserve Fund Report?
- A comprehensive list of building defects, structural and non-structural
- Any areas of immediate risk
- Recommendations and or timeline for when repair and maintenance can be expected to take place over five to ten year period
- Estimate costs for repair and maintenance work
- A budget for COO to adapt and approve
- An asset registry
- A photographic report relating to every element inspected
- Recommended trades list of strata suppliers
Why Pay for an Independent Ten Year Reserve Fund Inspection?
To make informed decisions based on factual information on the condition of the property. An independent and unbiased report draws a clear line in the sand for the property managers and council of owners to discuss with each other and tenants or trades people. Often, when comparing quotes the difference in prices and items quoted on can differ greatly. Our report allows you to compare apples with apples.
If you would like to forecast and budget for the next five to ten year period, ask us to graph the items that require repair and maintenance and an approximate time frame for this to be done.
Our team of experienced inspectors and administration team will provide you with pre and post inspection care. We take pride in our service and in explaining any defects in person if required.
For advice on your strata property or on who can assist you with maintaining or managing it, call Jo Colman on 0420 699 848.
Four our top five reform wins, click here https://bciwa.com.au/strata-inspections-perth-bcis-top-5-strata-reform-wins/
Why pay for an inspection? Because we speak for the building. You enjoy peace of mind and a good night’s sleep!