Sinking funds are an essential tool used by Property Owners and Managers to ensure that sufficient funds are always available to meet routine demands for capital maintenance works.
The underlying value of a property depends on it being well maintained; whether it’s the external appearance of the building, the condition of internal finishes or whether the air conditioning, lifts and other services are in good working order.
Regular capital maintenance, supported by a professionally prepared sinking fund report is the most cost efficient way to maintain a building over time.
A sinking fund report can be used to support the collection of annual sinking fund levies or regular capital maintenance fund contributions.
A professionally prepared sinking fund report ensures a planned approach to the funding of capital maintenance works; designed to avoid unwelcome surprises or the need for unpopular “one-off” special levies or funding allocations.
We recommend updating sinking fund reports a minimum of once every three years or sooner where significant changes to future maintenance works are expected.
In some states, body corporate and aged care legislation mandates that sinking fund reports must be prepared by a Quantity Surveyor.