Running a Sectional Title Scheme may initially seem easy, especially if the complex in question is small. While many Bodies Corporate function without incident, issues can occur when the Trustees lack the knowledge necessary to properly manage the Sectional Title Scheme or, perhaps even worse, the financial knowledge required to keep the scheme financially sound.
A Sectional Title Scheme requires extensive administration and management, which can be quite complicated, and done voluntarily by the Trustees, who might not have the time or the necessary training to fulfil their roles effectively.
According to Pearl Scheltema, CEO of Fitzanne Estates, there are many benefits to appointing a Managing Agent instead of the Trustees of Sectional Title Scheme doing all the work themselves.
“Management companies provide Trustees access to all the tools they need, including staff who can help with inquiries and property management, as well as the necessary policies and paperwork, such as participation quotas, insurance schedules, debtor’s schedules, minute books, conduct rules, and management rules,” Scheltema says. “Additionally, management firms have access to a large pool of suppliers and subcontractors.”
“The role of a Managing Agent includes keeping up-to-date with legislation, such as the Sectional Title Management Schemes Act and other relevant laws, guiding Trustees in the management of the Sectional Title Scheme and maintaining the required documents such as minute books, PQs, applications for extensions, and more.”
Scheltema says a Managing Agent will take on the burdensome tasks of sending levy statements, collecting levies or any other money owed by the owners, maintaining financial records, handling the annual audit and budgets for the coming year, as well as the day-to-day running and management of the property, such as arranging for quotes for repairs and maintenance and then managing the contractors who are chosen to carry out the work.
“Since the majority of Managing Agents have a solid supplier contact list and are knowledgeable about their industry, they can select the best contractors to complete any necessary work,” Scheltema said. “As is the case with most bulk deals, they would frequently be able to negotiate better prices because they frequently send a lot of work to their preferred contractors. These contractors can include security companies, auditors and property maintenance companies or garden services.”
“In general, the performance of the Body Corporate should improve, and the financial situation of the scheme should be healthy if the administration and management work is done by a professional in this field,” said Scheltema. “Fitzanne Estates, when enlisted to assist with any sectional title financial solutions, would work hand in hand with Trustees to achieve this.”
Choosing a seasoned full-service property management company can make all the difference in the day-to-day running and profitability of a Sectional Title Scheme, and obligation-free quotes are available.
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