Body corporates oversee the management of sectional title developments. Properties in a sectional title development typically refer to those which are part of a complex or apartment building sharing common property.
Whereas HOAs (home owners associations) seek to manage the common property and set rules & guidelines for those holding full title/free standing homes in estates.
Common property refers to all areas in a sectional title available for use by owners, these include parks, pools, roads, entrances e.t.c.
Monthly levies paid by property owners are typically calculated by the trustees these calculations are based on the total annual budget required for the running and maintenance of the scheme.
This is why it is of paramount importance that schemes know their financial positions and their current positions in terms of reserve fund requirements in-order to align budgets to levy collections.
The importance of a good management company
The role of a management company is to act as middle man and mediator between property owners of the scheme and trustees assisting with any conflicts should they arise.
Management companies are tasked with overseeing the financial record keeping of a scheme, ensuring the scheme remains compliant with various stakeholders and seeing to levy collection.
Peace of mind
Often sectional title property owners (commonly referred to as members) question whether levy payments are appropriately spent.
Melodic aims to mitigate these questions by providing property owners with detailed schedules indicating where levy receipts have been allocated.
This proactive approach ensures that levy receipts aren't misappropriated, and any misappropriation is discovered on a timeous basis.
Good management companies add value
One may choose to purchase property in a sectional title scheme to personally reside there or as an investment. It is therefore of utmost importance that common property in a scheme is looked after as well as possible. When a scheme is properly managed it ensures the value of one’s investment is maintained.
At Melodic we are of the opinion that Sectional Title Schemes operate much like a business would, in that we view scheme property owners as shareholders and trustees as directors. Through transparency, integrity and honesty we aim to ensure that the interests of property owners are looked after to the highest degree possible.
CC Designs Evolution 2019