Reserve Fund Planning: Why Every Scheme Needs a 10-Year Maintenance Plan

What the Plan Should Cover

• An inventory of major common property components (roof, lifts, paintwork, waterproofing, plumbing, electrical infrastructure)
• The expected remaining useful life of each component
• Estimated replacement or major repair cost, adjusted for inflation
• A 10-year schedule showing when each expense is expected to fall due
• The resulting annual reserve fund contribution required to fund the plan without a shock special levy

Why 10 Years, Not One

Annual budgeting alone can't anticipate a roof replacement due in year seven or a lift overhaul due in year four. A 10-year view smooths contributions over time, so owners pay predictable amounts annually rather than facing a large special levy the year an expense actually falls due.

Common Planning Mistakes

Reviewing and Updating the Plan

A maintenance plan isn't a once-off document. It should be reviewed annually alongside the budget, and reassessed properly (ideally with a physical condition survey) every few years, since costs, condition, and priorities all shift over time.