In South Africa, thousands of people live in sectional title complexes and many of these have ongoing problems with owners not paying their levies. Often the reason for this is that owners have a misunderstanding about what levies are, what they are used for, and why you can’t afford to not pay them if you have chosen to buy into a community housing scheme.
What is a levy?
Levies are the price of ownership in a sectional title or community housing scheme. If you are a freehold owner you have to pay rates over and above your monthly water, electricity, and refuse charges. Similarly, if you have bought a sectional title apartment or a home in a gated estate, you are required to pay a monthly levy that covers the cost of insuring, maintaining, and securing your property.
What levies are used for?
Levies are used to cover the operating costs of your housing estate or scheme, and these are discussed every year at an annual general meeting, which all owners should attend. The breakdown for what levies are used for should be supplied in an approved budget. In general, levies are used for:
- Repair, upkeep, management and administration of the scheme’s common property.
- Salaries of staff (cleaners, gardeners etc.) employed by the body corporate.
- Payment of contractors, etc.
- Complex security.
In addition, the Sectional Titles Management Act specifies that community housing schemes create and maintain reserve funds to cover the future cost of any emergency repairs or major maintenance projects. A portion of your levy should be placed into a savings account in order to accumulate funds to cover these costs.
If sectional title and estate homeowners don’t pay their levies regularly, they are placing the security and upkeep of the complex in jeopardy and ultimately, damaging the value of their own homes.
Protect your property with an experienced property manager
Having a professional property management company look after your community housing scheme ensures the best possible management of your property by:
- Professionally ensuring the monthly collection of levies and pursuing defaulters through the appropriate legal channels.
- Maintaining the upkeep of your housing scheme/estate with a licensed network of experienced contractors and cleaning staff.
- Identifying and ensuring regular annual maintenance is carried out to prevent emergencies resulting from delays or neglect.
An authorised Property Management Agent will ensure the collection of monthly levies and ensure the property is maintained in the best interests of ALL the owners. For expert assistance with the management of your sectional title estate or community housing scheme, contact the experienced EA Property Management Team today.