Property assets need to be rigorously maintained to retain their value. However, many owners do not know or understand what is required to do this.
Below we have created a building management checklist so you can ensure your building is well maintained and the value of your property is protected.
Sinking Fund Forecast
Purpose: A sinking Fund is effectively a deposit which exists to allow a Body Corporate to pay for repairs and maintenance of a building.
The money in a sinking fund can be spent on several different things. Firstly, it can be spent on anticipated capital expenditure, or non-recurrent items. In a large strata scheme, this often includes large or one-off items, such as painting the building or major structural repairs to common property. The sinking fund can also be used to replace major capital items in a scheme. This might include items such as common property fences, or carpets in a lobby. Sinking funds can then also be spent on any other expenses which should be reasonably met from capital, such as pool furniture.
How Often: Every financial year, Body Corporate committees must prepare a sinking fund budget. This is to ensure the sinking fund has sufficient finances to provide necessary and reasonable spending for the upcoming financial year, on the items listed above. This is also necessary to ensure an amount is reserved to cover likely spending for at least 10 years after the current financial year. Building up financial funds reduces the likelihood of having to ask lot owners to make a large, one-off payment to sinking fund levies – although it does not totally remove the possibility of this occurring.
Common Property Condition Report
Purpose: A Common Property Condition Report involves a detailed inspection of your common property to ensure all common areas are maintained to an acceptable standard. This includes an inspection of all common areas, photographs of common areas with notes attached and pool water samples.
How Often: There are no set times when a Common property condition report should be conducted. You should engage experts to carry out this report if the Body Corporate have concerns over the condition of common areas.
Building insurance Valuations
Purpose: Failing to have an accurate and up to date insurance valuation can result in inflated premiums or insufficient cover in the event of a claim. Our experienced quantity surveyors will provide you with an accurate insurance valuation, giving you peace of mind that should you need to claim, your valuation won’t cause any issues.
How Often: Building insurance valuations should be conducted every 5 years. However, in these uncertain economic times, buildings may want to do this more frequently to ensure accurate valuation should your Body Corporate need to claim.
Safety and Compliance Report
Purpose: We carry out Work Health & Safety inspections and report on risks at your building and advise how they might be controlled. We offer maintenance schedules and logbook packages that ensure your property is maintained in the best practice, and all aspects of the property are compliant with the WH&S Act (2011) and Building Fire Safety Regulations.
How Often: The Body Corporate should engage a professional to conduct a safety and compliance report annually. To ensure the building is compliant and safe, the Body Corporate should then implement the recommendations in the report. It is important that all members of the Body Corporate ensure daily that there are no obvious risks.
Purpose: In Queensland we are governed by the Building Safety Regulations 2008, Building Act 1975, and Building Code of Australia.
This legislation exists to prevent loss of life, injury to persons and loss of property in situations of fire emergencies. Its two main goals are ensuring:
- Safe evacuation is possible during a fire emergency
- Fire safety installations are maintained
How Often: Fire safety is of the utmost importance as if something is not compliant it can be very serious in the event of a fire. Every day, the Body Corporate should ensure the building is fire safety compliant by checking the fire exits are clear and there are no evident risks to the building. The Body Corporate should engage a professional annually to conduct a fire safety report. The Body Corporate should then implement the recommendations to ensure the safety of the building and all residents.
If you require assistance with ensuring your building is compliant and your investment is protected, StarBMS can help. We can guide you through every step on the way to ensure you understand why your building is required to comply and how it benefits your investment now and long term.
If you would like to know more, Click here for an obligation free consultation today.