Sinking Funds For Property Management
Fahy Fitzpatrick offer preparation of Sinking Funds for both:
Commercial Property Managers and Multi-Unit Property Management Companies
Fahy Fitzpatrick assist management companies/property managers by calculating a sinking fund for major repairs and replacements of building elements and services.
Fahy Fitzpatrick also provide an independent service by Chartered Building Professionals. These Professionals accurately determine the remaining lifespan of a building’s elements and prepare a sinking fund to serve the actual needs for the building over the next 20 years (or 50 years).
Upcoming legislation states that all apartment management companies must provide a sinking fund for major repairs and replacements of building elements and services. This legislation is is known as the M.U.D Bill, or Multi-Unit Developments Act.
At Fahy Fitzpatrick, our typical services for Property Management Agencies and Apartment Management Companies range from the following:
An Inspection
A survey and report will determine the condition of the building. These will both provide an expert opinion on the condition of the structural, architectural, fire safety, mechanical and electrical elements and identify areas requiring upgrading over the next 20 years. This will ensure that health and safety, running costs / energy efficiency, aesthetics and property value are all maximised.
Where defects are found, Fahy Fitzpatrick provide budget costs to repair the damage. A list in order of priority is drawn up.
With regards to replacement of items, the new replacement has been priced to meet present building regulations. Particular items, which are major contraventions of good building practice, or a risk to Health and Safety, are noted in the report with the intention of the client upgrading the items. Where possible, this should be done at the earliest convenient time.
Where areas of construction do not meet present day building practice, but do not pose a risk to health and safety, Fahy Fitzpatrick would propose to only replace these at the end of their intended lifespan.
Calculation of a Sinking Fund
The aim of this is to estimate the cost to replace building elements over a 20 year period.
The assessment of the remaining lifespan of each element of the building informs as to when existing elements need to be repaired or replaced.
Fahy Fitzpatrick's report outlines when the various items such as; escalators & lifts, roofing, electrical distribution boards / wiring, cladding, etc. need to be replaced, and calculates the funding needed to cover these costs over the 20 year period. The total fund is then presented as an annual payment that will be needed to fund major repairs / replacements in a planned and transparent manner.
Fahy Fitzpatrick's service offers the following benefits:
Maintaining Value of Property
A structured, detailed report and budget for the coming years will demonstrate how this can be effectively achieved in the best interests of property owners.
Transparency
Full budget costs for replacement items provides property managers with greater clarity. This facilitates presentation of future costs to clients.
Avoid Large Emergency Payments
A planned, concise schedule of required funding of major building elements prevents owners being asked for lump-sum payments to fix emergency issues such as; roof leaks, lift replacements, etc.
Independence
Independent fully insured professional consultants providing unbiased advice and best value for money.
Potential for Reducing Costs
By incorporating an energy study as part of the report process, key operating cost savings can be identified, resulting in lower running costs for the building.
Contact: bmcgann@fahyfitz.com or Ph: 01-4030175
Click Here for further information of our Sinking Fund Project Experience.