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Hi, if anyone kindly please has an insight on the extent to which a consulant firm is necessary to report on a sinking fund in a 21 unit block, will be glad of your reply. Thank you
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Hi Robyn, to the best of my knowledge “a consultant firm” is not necessary at all. Strata laws do require assessments which cover a 10-year period with a review to be done every 5 years.
We do our own assessments via a excel spreadsheet every five years. It is not compulsory to implement the things listed in the assessments but they do form a very handy budgeting and planning tool for examining whether future needs for large maintenance items will be able to be met out of levys.
In NSW the relevant legislation is:
STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 75A
Owners corporation to prepare 10-year sinking fund plans
75A Owners corporation to prepare 10-year sinking fund plans
@ROBYN SHORT said:
Hi, if anyone kindly please has an insight on the extent to which a consulant firm is necessary to report on a sinking fund in a 21 unit block, will be glad of your reply. Thank youAs Cosmo says above, not necessary and, for a 21-unit firm, maybe not even desirable.
This has been discussed many times and at considerable length most recently HERE. Click on the link and scroll down to item 6 (where a fresh discussion starts) and you will find a lot of ideas and tips on how to do this efficiently and inexpensively.
Just making a list of all the areas of common property, when they were last repaired or maintained (if at all) and how much it cost would be a start.
That said, if there is no one on your committee or in your building that has even that level of expertise, maybe you do need a consultant after all.
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