Steve Garland, Body Corporate General Manager, discusses Long Term Maintenance Funds.
People and countries around the world are in a state of extreme fragility in relation to meeting the challenges in dealing with the pandemic this year. Some are pinning all their hopes on rolling out the vaccine, whilst others are still under various forms of lockdown. As we currently find ourselves here in Auckland under Level 2 with the rest of the country in Level 1.
In light of this, one of the things that we noticed towards the end of 2020 was Committees taking a closer look at the detail contained in their Long Term Maintenance Plans (LTMP’s) and the health of those Long Term Maintenance Funds (LTMF’s) attached to those Plans particularly in relation to how they line up when compared with the age of their building.
Funding LTMP’s is a continual wave of raising levies and spending on expenses relating to infrastructure and elements contained within the building(s). Some of our clients have temporarily suspended contributions to their LTMF’s as instead; they grapple with building remediation projects.
One key health check is to look at your LTMP and the work recommended over the next five years along with the current fund balance. Then take a hard look at the actual condition of the building elements and infrastructure themselves on-site. If these identified areas are still in good condition then you may need to adjust your LTMP accordingly. Alternatively you may need to bring your funding intentions forward. Manager to see when your next compulsory three year LTMP review is due.
This year one of the things that we will be rolling out will be an improved webpage offering to all our Body Corporate, Cross lease and Residents Society clients. This is where we store all the documents and information pertaining to your individual building to which you will have direct, secure and private access to things like AGM/EGM Minutes, Financial Reports, Rules, Insurance detail and claim form access, as well as consultants reports, Health and Safety and Long Term Maintenance Plans amongst other property reports/files.
We are anticipating a challenging year ahead in terms of our country’s ongoing health in the face of this pandemic. But we are well prepared to meet these uncertainties and have an experienced team ready and available to assist you with your home or investment property during what has started out so far this year as a red hot property market.
General Manager – Body Corporate
Auckland Property Management
If you have any questions about your Long Term Maintenance Fund then get in touch with one of our team by completing the online form below.