Securing your investment: A guide to 10-Year maintenance plans for sectional title schemes

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Category: Funding and Treasury

Securing your investment: A guide to 10-Year maintenance plans for sectional title schemes

Owning property in South Africa is not just about acquiring a piece of land or a building—it’s about safeguarding and nurturing that investment for the long haul. This holds especially true for sectional title schemes where communal living adds layers of complexity to property maintenance.

From battling the wear and tear of buildings, to ensuring the upkeep of common areas, the maintenance of a sectional title scheme is a collective responsibility. Neglecting this duty not only diminishes the value of individual units, but also impacts the entire community.

In response to this challenge, South African legislators, through the Prescribed Management Rule 22 of the Sectional Title Schemes Management Act Regulations have made it mandatory for trustees to develop a comprehensive Maintenance Repair and Replacement Plan (MRRP) for sectional title schemes. This plan, reviewed annually and adjusted as needed, serves as a roadmap for addressing major maintenance needs over a 10-year period.

This written 10-year plan maintenance plan includes:

  • the major capital items expected to require maintenance, repair and replacement within the next 10 years;
  • the current condition of all those items;
  • the time when those items will need to be maintained, repaired or replaced;
  • the estimated cost of each of those items;
  • the expected life for each of those items once they have been maintained, repaired or replaced; and
  • any other relevant information.

Why is having an MRRP so crucial?

For starters, it allows for better financial planning, preventing sudden spikes in levies or the need for emergency special levies. This stability benefits both the body corporate and individual unit owners, fostering transparency and accountability in the process.

However, sometimes there isn’t enough capital on hand for immediate maintenance needs. Enter project funding. Sectional Title Solutions (STS), in collaboration with BC Funding Solutions, offers tailored funding solutions to bridge the gap between urgent maintenance requirements and available funds.

Whether it’s waterproofing, painting projects, or common area repairs, STS ensures that community schemes can tackle maintenance projects without placing undue financial strain on unit owners. By offering flexible funding options, STS empowers communities to adhere to their 10-year maintenance plans while preserving their financial health.

Don’t let maintenance woes erode your investment. Partner with STS today to transform your community scheme from merely surviving to thriving. Download our brochure or reach out to learn more about our bespoke funding solutions tailored to your needs.