Property Management Companies are quite invaluable for body corporate of a complex or an apartment block. This is simply because the trustees of such a BC are busy with their own daily lives and managing the BC is most probably last on their to-do list. It is for this very reason that if your BC don’t have a chairperson, willing to manage the BC full time at an extra charge that a property management company is a must.
A property management company will manage the daily activities of the property, make sure that the required maintenance is done, that the books are kept in order and that your BC can smile to the bank at the next AGM meeting.
As such your property management company can perform the following task for your Body Corporate:
Your property management company will have a good understanding of the landlord-tenant laws, meaning they will inform the trustees what they can and cannot do in managing the property. This is an invaluable asset, knowing the trustees are always clear with the law is a major stress reliever in South Africa.
Maintenance and Repairs
It is the property management company’s responsibility to perform preventative maintenance, in order to keep the property in a functioning and tip top condition. If a maintenance problem is found, it is the property management company’s responsibility to gather quotes, inform the trustees and to get it fixed.
These managing companies also often already have a suppliers list of reliable and well priced maintenance professionals.
As a body corporate it is fundamental that the trustees have someone they can trust and allow to run with a task, thus allowing the trustees to focus on more important aspects of their BC.
This is another added advantage of hiring a property management company, they will supervise those that needs supervising, such as the cleaning staff, the building manager and the gardening team.
Your property management company has the ability to hire and fire as needed, to set up salaries and deal with UIF legislation. Something that is truly invaluable to Body Corporates.
The Paper Work and Accounts
It is your property management company’s responsibility to keep accurate records of every task performed within the property and to work within the budget. The admin done by your property management company will save you and your BC a lot of time and effort, ensuring that all is well for the tax man and your insurance company.
Property management companies are a must in South Africa, especially if you have a new complex or apartment block. This is simply because after taking a property over from the developer the trustees need to ensure that all the relevant accounts have been opened for the property with council. Meaning to make sure that there is an electrical account, water and property tax account. I know it seems like these accounts have to be automatically created, but in South Africa the system is slow, papers get lost and simply we work with a some what broken system. It will be your property management company’s responsibility to ensure that the property has all its accounts open and paid. I can’t stress this enough, don’t wait, go check if your property has the right accounts open before a nasty surprise jumps at you and your trustees.
The property management company will be responsible to gather all the levies of the property and to know what legal action can be taken towards those who don’t pay. They will also have the financial knowledge to be able to look at your budget and estimate if the levy amount is adequate for the budget requirements.
The property management company will also be in charge of arranging meeting as the BC equires as well in the arrangements for the annual AGM meetings. These might seem like small benefits for paying their commission fees, but AGMs have their own rules that have to be followed, it is most certainly handy to have a person by your side that knows what needs to be done, and how it needs to be done.
Property management companies are invaluable to complexes, apartment blocks and homeowner associations. The small 5 – 10% commission they take is truly worth the money, considering all the time and effort they will save your trustees. This is not even to mention the fact that they do this for a living, knowing the loopholes, the pitfalls and ensuring that your property and trustees are always in the right.