Elevating the Role of 10-Year Maintenance Plans for WA Strata Companies: Moving Beyond a Mere Tick-Box Exercise
The requirement for a 10-year maintenance plan in the Strata Titles Act WA is often seen as a compliance ‘checkbox’ to be marked off. However, with strategic thinking, there is a great opportunity for strata companies to elevate this routine requirement into a sophisticated tool.
What I mean by this is your 10-year maintenance plan is not just to forecast maintenance but could also be used to strategically utilise lifecycle management plans for budget forecasting and ensuring a robust financial future (like we do for commercial properties).
I believe that by exploring a more sophisticated approach, we can generate substantial benefits – but this sometimes means redefining ‘the way we do things’. The 10-year maintenance plan is just one element of Strata Management where our expertise can add even more value if approached a little differently.
To explore and unpack this idea, I have listed some of the potential considerations successful strata managers may have in mind when generating a 10-year maintenance plan. But before we get to the specifics, It is important to:
Rethink the ‘Checklist Mentality’
Too often, strata companies view the 10-year maintenance plan as a mere compliance exercise—a checklist item to satisfy regulatory requirements. By shifting this mindset and embracing a more nuanced strategy, strata companies can transform this obligation into a powerful financial tool.
Borrow Commercial Property Practices & Mindset
The commercial property sector understands the significance of proactive lifecycle management plans. These plans extend beyond regulatory compliance, serving as strategic roadmaps for maintaining property value, forecasting budgets, and ensuring financial sustainability. I believe that strata companies could borrow a page from this playbook, bringing a level of sophistication to their 10-year maintenance plans that goes beyond meeting minimum requirements.
How successful strata companies and managers could maximise benefits through strategic planning:
Proactive Cost Management
Strata companies can move beyond reactive maintenance and adopt a proactive approach. By identifying potential issues early and implementing preventative measures, costs associated with major repairs can be minimised, aligning with the legislation’s spirit while optimising financial efficiency.
For example, one consideration might be regular inspections of the property – whether this is something strata managers include in their scope, or as part of the Strata Company’s annual budgeting for an inclusion of Facility Management or building condition / engineer reports.
Enhanced Property Value and Attractiveness
Like commercial properties, strata schemes can leverage meticulous maintenance planning to enhance overall property value. This not only satisfies regulatory expectations but also makes the property more appealing to potential investors and residents, thereby safeguarding long-term financial interests.
There are many ways to think about “lifecycle planning” for a building. An example for applying this mindset could be evaluating painting requirements for a large strata building over a set number of years (e.g. 7 years).
Strata managers might view this as ‘reactive’ maintenance to be completed when the current paint deteriorates, whereas an expert facilities manager might think of this from both the perspective of preventative maintenance and the opportunity to add value throughout the lifecycle – potentially by implementing a 7-year maintenance program to see its continual renewal and improvement.
These different perspectives can often lead to different maintenance plan and budgeting outcomes.
Regulatory Compliance with a Strategic Edge
While meeting the Act requirements may be non-negotiable, strata companies can integrate a strategic edge. By anticipating regulatory changes and aligning their 10-year maintenance plans with upcoming legal requirements, strata entities can ensure continuous compliance while demonstrating foresight.
Think of having a risk management plan, and potentially facility management service available to the scheme that is on top of upcoming changes to building standards and compliance requirements.
As an example of this in action, we may often see changes in Fire Service compliance and safety requirements, which is why engaging a Fire Services contract for ongoing and preventative maintenance and legislative updates is crucial.
Sustainable Practices and Cost Savings
Incorporating sustainable practices into maintenance plans not only aligns with Western Australia’s environmental focus but also brings long-term cost savings. Efficiency improvements and eco-friendly initiatives can contribute to a financially sustainable future for strata schemes.
You may consider something small scale like upgrades to LED lighting and timers to minimise energy usage and/or costs, or larger capital improvements relating to sustainability like installation of solar panels, water recycling systems and other big ticket green items.
Creating greener buildings through sustainability and the cost savings considerations leaves scope for a whole new article!
Strategic Budgeting for Financial Resilience
Adopting a sophisticated approach to 10-year maintenance plans allows strata companies to forecast budgets strategically. By understanding and allocating resources based on anticipated maintenance needs, financial strain can be mitigated, fostering a resilient financial future.
Look at optimising your 10YMP, consider adding the cost of having the engineer/facility manager include a budget forecast to align with the plan, and then utilise this framework for your strata company’s annual budget.
To maximise future potential and refine the scheme’s financial plan, you might even consider arranging a further 5-10 year forecast, additional to the adopted annual budget. This may be an effective tool for the strata company to better understand what cost savings in the current year may do to the future budget/levies.
Basically, plan ahead, plan for the long haul and give a clearer picture into investment… it isn’t always worth “saving” in the current fiscal year where this may cause a deficit in the future.
In summary…
The 10-year maintenance plan might be mandated by the Strata Titles Act, but it is not just a mere tick-box exercise.
Strata companies in Western Australia have an opportunity to elevate this requirement into a sophisticated financial tool, mirroring the strategic lifecycle management plans employed by commercial properties.
By embracing this approach, strata entities can not only meet regulatory expectations but also proactively enhance property value, ensure compliance, and build a strong financial foundation for the future.
In my opinion, it’s time to view the 10-year maintenance plan as more than just a checklist—it’s a key to unlocking financial sophistication and resilience in the dynamic landscape of strata management.
If you are ready to redefine the way your strata management company approaches the mandatory 10-year maintenance plan, reach out to me today! With specialised experience in strata management, commercial property and agency management I have the tools to help you build the perfect process.
What are your thoughts?
Feel free to connect with me and join the conversation as we collectively reshape the narrative around strata management practices for a more sustainable and financially robust future.
Reach out to Nikki D’Agostino on [email protected] or drop a comment below.
