WESTERN AUSTRALIA (WA) STRATA REFORM
10-year Maintenance Plan & WA Strata Reform, what do you need to know?
Western Australia (WA) strata laws and regulations are changing for the first time in over 30 years, these changes have been made to improve the system; making it clearer and fairer for owners, tenants and buyers of properties within strata schemes in WA.
The amended WA Strata Titles Act 1985 became effective on the 1st of May 2020.
IMPROVING STRATA MANAGEMENT AND BY-LAWS
- The introduction of 10-year maintenance plans and reserve funds
- By-laws made clearer & fairer
- Modernising how schemes are being run
- Changes to the role of strata managers
10-YEAR MAINTENANCE PLAN & RESERVE FUND
Who has to comply?
With the amended WA Strata Titles Act 1985, a 10-year maintenance plan and reserve fund will be required for:
WITH 10 LOTS or MORE
Strata schemes with 10 lots or more
5 MILLION THRESHOLD
Strata schemes with a $5 million replacement cost for building/s or improvements on the common property.
For almost two decades, HFM Asset Management has been helping clients across all industries, with their maintenance planning.
During this period of time, we’ve been working closely with the Strata Residential sector, preparing life-cycle costing asset analysis, and 10- year maintenance plans; to help strata managers & owners identify and forecast common- property maintenance expenditures.
HFM has been actively following the WA Strata Reform from the beginning and it’s one of six members of the “WA Strata Reform Education Group” established by LookUpStrata in early 2019.
Our approach is a ground-up approach, it requires our consultants to undertake full site inspections, prepare full asset register of major plant, review maintenance contracts and service records. Only once all this work has been undertaken can a full appreciation of the building and expected future operating costs be prepared.
HFM’s Maintenance Plan and Reserve Fund Plans are compliant with the new strata regulations and provide strata schemes with appropriate data and key information to make informed decisions regarding future capital investment into the property.
What are the benefits?
10-Year Maintenance plans & reserve funds are mandatory for certain strata schemes.
Improve productivity of facilities and equipment
Owners and Strata Managers will have a clear understanding of the strata scheme’s maintenance requirements and priorities.
Well-planned preventative maintenance can significantly reduce costs related to the overall maintenance.
HOW DOES IT WORK?
When HFM is engaged by a Strata Scheme to undertake a 10-year maintenance plan:
HFM will review existing documentation
HFM will conduct a site inspection
HFM will provide a comprehensive 10-Year Maintenance Plan
The strata scheme will implement the 10-Year Maintenance Plan
What to expect?
Our experienced team members will prepare a comprehensive report, that includes both a 10-Year Maintenance Plan & a Reserve Funds Forecast, as follows:
10 Year Maintenance Report:
A detailed condition assessment of the property’s plant & equipment, common and exterior areas, including:
- List of all the strata scheme’s assets;
- Detail their current condition and residual life span;
- Extensive photographic evidence;
- Maintenance requirements per item, including its recommended frequency; and budget estimates; and
- In some cases (when opportunities for improvement are identified for the strata scheme), our experienced team will also recommend additional upgrade or redevelopment options.
Reserve Funds Forecast:
A detailed Reserve Fund Forecast (also known as a Sinking Fund) for the 10 year plan. This includes:
- Financial estimate per asset over the term of the plan; and
- Estimate the annual contributions required.
HFM’s STRATA EXPERIENCE
HFM have significant experience preparing 10 Year Maintenance Plans & Reserve Funds Forecasts.
Some of our recent clients for these services in Western Australia are:
- ARIA Apartments – 2 Milyarm Rise, Swanbourne, WA
- The Precinct – 19 Ogilvie Rd, Mount Pleasant, WA
- 378 Beaufort St, Highgate, WA
- Richmond Quarter – 147 Canning Hwy, East Fremantle, WA
- 22 Railway Road, Subiaco, WA
- Unison on Tenth – 2 Tenth Ave, Maylands WA
- The Westralian – 78 Terrace Road, East Perth, WA
- Marq by Psaros – 144 Cambridge Street, West Leederville WA
- Ice Works Apartments – 60 Marine Terrace, Fremantle WA
- 95 Monash Avenue, Nedlands, WA