Starting 2026 Strong: Your Sectional Title Scheme Health Check

1. Dust Off That 10 Year Maintenance Plan

The STSMA requires every scheme to maintain a 10 year maintenance plan, and it's more than just a compliance box to tick. It's your roadmap for keeping the building in good shape without nasty financial surprises.

Now's a great time to review:

• What got done in 2025 and what didn't

• Whether any projects are showing their age faster than expected

• If your cost estimates still reflect reality (spoiler: they probably don't)

• Which contractors you'll need to get quotes from this year

A well maintained plan shows owners their levies are working hard, not just disappearing into a black hole.

2. Take a Hard Look at Your Budgets

Your Administrative and Reserve Funds need to be kept separate by law. With a fresh year underway, trustees should ask:

• How did 2025's actual spending compare to what we budgeted?

• Where did costs blow out, and why?

• Are our 2026 levy contributions realistic?

• Does the Reserve Fund meet the minimum legal requirement, or are we skating on thin ice?

Getting this right means fewer panicked emails about special levies and more financial breathing room when the unexpected happens.

3. Check Your Insurance Coverage

Here's the big one: the Body Corporate must insure buildings and common property for their full replacement value. With building costs climbing, January is the ideal moment to confirm:

• Your valuations reflect what it would actually cost to rebuild today

• Recent improvements or alterations are included in the policy

• Owners know they're responsible for their own contents insurance (because many still don't)

• Your premiums aren't based on figures from three years ago

Insurance isn't exciting, but it's probably the most important legal obligation a Body Corporate has. Don't skip this one.

4. Refresh Your Conduct and Management Rules

Conduct Rules keep the peace in shared living spaces. After the holiday period, it's worth checking:

• Whether any rules need tweaking based on last year's challenges

• That all rules are properly registered with CSOS

• If residents need a friendly reminder about parking, noise or guest protocols

Clear, reasonable rules prevent small irritations from becoming big disputes. And nobody wants to spend their year mediating parking wars.

5. Get Your AGM Ducks in a Row

Many schemes hold their Annual General Meeting in the first quarter. If that's you, start preparing now.

Trustees should make sure:

• Financial statements are ready for the auditor (no last minute scrambles)

• The maintenance plan is current and presentable

• Any proposed rule changes have been properly reviewed

• Owner contact details are up to date (you'd be surprised how many aren't)

A well organised AGM builds trust. A chaotic one builds frustration and conspiracy theories about where the money's going.

6. Keep Owners in the Loop

A quick update to owners can work wonders for community morale. Consider sharing:

• A brief overview of maintenance planned for 2026

• Any upcoming disruptions they should know about

• Emergency contact details (holiday mode may have scrambled these)

• A reminder about key conduct rules, especially if you had issues over December

Transparency reduces anxiety and keeps owners feeling like they're part of the process, not just paying into it.

The Bottom Line

Taking a few hours now to review your scheme's operations can save countless headaches down the line. Good governance isn't about perfection; it's about being organised, communicative and proactive.

Cenprop Residential works with trustees and owners year round. If your scheme needs support with planning or just wants a second pair of eyes on something, our team is ready to help you make 2026 a smooth one.