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:
- Preparing accurate administrative budgets based on past expenditure and
expected increases. - Recommending reserve line items for general maintenance or emergency
repairs. - Providing financial insight to support informed, responsible decisions.
A well-structured budget today protects your Scheme from future financial strain.