Budgeting for the Unexpected: Why Schemes Need a Maintenance Buffer.

While a 10-Year Maintenance Plan covers predictable upkeep, real life often brings unexpected repairs – like a failed gate motor, a premature pool pump breakdown, or an insurance shortfall after storm damage.

While you can’t always predict emergencies, Schemes can plan smarter by building reserve buffers into their budgets.

• Sectional Title Schemes are required to contribute to a Reserve Fund under the STSMA (Act 8 of 2011).
• Homeowners’ Associations aren’t legally required to have a 10-Year Maintenance Plan- but it’s best practice to build a reserve for future repairs and upkeep.
• Administrative Budgets should include a line item for general maintenance, allowing for unforeseen but necessary expenses not covered by long-term planning.

At ANGOR, we assist Scheme Executives by:

1. Preparing accurate administrative budgets based on past expenditure and
   expected increases.
2. Recommending reserve line items for general maintenance or emergency
   repairs.
3. Providing financial insight to support informed, responsible decisions.

A well-structured budget today protects your Scheme from future financial strain.