1 May 2020 marked the day that Western Australia’s strata laws changed for the first time in over 30 years. The modernised strata reform has led to more clear and fair rules for Western Australians who own, occupy or are interested in purchasing strata-titled properties.
A 10-year maintenance plan and reserve fund has become a requirement for certain strata schemes. This applies to schemes with more than 10 lots or a replacement value of over $5 million for buildings or common property improvements. If your strata doesn’t fall into these requirements, you may like to still prepare a 10-year plan or have a reserve fund, although not required.
So why do I need a 10-year plan?
Future-proof your strata
Stay atop of any maintenance and repairs that may arise
Ensure funds are available when needed
The 10-year plan details any anticipated maintenance, repair, renewal or replacement requirements for any property within the strata, likely to arise in the next 10 years. Costs and timeframes are estimated and accounted for.
Not only does the condition of your existing energy infrastructure need to be considered in your plan, this infrastructure could actually help fund it.
Antiquated submetering, solar panels to heat your pool or reduce your electricity costs, electric vehicle (EV) chargers to support the rapid intake and battery energy storage systems all needs to be considered. Whether you want to upgrade your existing infrastructure or install something new, we are here to help.
How can we fund our 10-year plan through our strata’s energy?
There are a few ways…
Get the best buy price on your electricity. An embedded network usually means more contestable rates than if your lot is individually metered. Learn more about Energy-Tec’s procurement process here. Maybe individual occupants won’t necessarily notice a difference to their bills, but the extra savings will be offsetting their levies meaning less out-of-pocket expenses.
The revenue generated from your solar can be put straight back into your reserve fund.
Offset energy costs by using your solar and battery storage during peak times, leaving more money in owners pockets to go into the reserve fund, rather than an additional expense.
Makes sense, right?
REMEMBER Your 10-year plans must be submitted for approval at the first annual general meeting (AGM) held after 1 May 2021. The plan must be approved by the owners by ordinary resolution (so more than half of the people present).
Energy-Tec can help, get in touch today.
This article was brought to you by Energy-Tec