Purposes of Maintenance Budget

There are various names the maintenance budget others call it thinking budget others call it sinking budget, others call it reserve fund others call it capital improvements budget they all mean the same thing and that really means savings for future maintenance.

Here are the five reasons or purposes for a maintenance budget.

1. Long-term maintenance/repair (i.e., painting program) - long-term maintenance repair means that it has a succeeding number of repairs carried out on an example of that is to carry out a painting program. Where there is a large development, it would be beneficial for your strata community if you carry out a painting program to make sure that the exterior look of the development is maintained therefore the value is preserved 2. Big projects (roof replacement) - another purpose of a maintenance fund is if there are big projects which means it costs a lot of money that way there's time for the strata community to save some money and example of a big project would be roof replacement,

3. Improvement works (common property technology) - an example of an expensive project is a lift replacement it is an expensive project and therefore needs time for your strata community to save, to carry out at replacement

4. Improvement works (common property technology) - an example of improvement works is to make sure that you come and properly technology is up-to-date, and this allows and requires your strata community to carry out improvement works, and a maintenance budget would absolutely be necessary to make sure that your common property technology is up-to-date 5. Upgrade works (upgrade landscape) - example of an upgrade work would include upgrading of the landscape, this would mean beautifying, this would include additional common property assets that were not there before but absolutely requires further funding from the strata community and therefore further time to save money. There you go Strata enthusiasts. These are the five purposes of a maintenance budget. Remember to continue upgrading yourself!

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