This week’s discussion is around the requirement for village operators to prepare an Asset Management Plan.
Retirement Villages Residents Association NSW (RVRA) members have confirmed that this is creating issues for operators and residents.
Under the Retirement Villages Amendment Act 2018, village operators are required to prepare an Asset Management Plan (AMP) for the village’s major items of capital and to make the plan available to current and prospective residents to increase transparency.
In the RVRA’s latest newsletter, President Craig Bennett (pictured) has stated it is clear that there is confusion resulting from the introduction of the mandated Asset Management Plans. There are many i
nstances of residents being faced with 50+ pages of minuscule spreadsheet data and, unfortunately, also many instances where an independent auditor or Quantity Surveyor report is not available.
The result is that a significant number of queries to, and requests for assistance from the RVRA relate to the figures arising from these plans and corresponding budgets.
These concerns were reiterated in a recent RVRA survey seeking members’ responses on the budget process this year, including the effect of the Asset Management Plans’ rollout.
One member commented – there needs to be a realisation that one size does not fit all. There may be instances where residents are quite content to have an independent report annually justifying broad categories of asset maintenance, repair, or replacement, rather than a 50-page spreadsheet.
The RVRA and the Property Council are working to try and identify an acceptable compromise that will soften the impact – both in costs and effort – of the plan. This work is aimed at providing feedback to the Minister and Fair Trading on issues which have surfaced under the recent amendments to the legislation.
Learn more about the RVRA HERE.
