When selecting a property management company to manage your body corporate or HOA, it is vital to ensure that your community scheme’s funds will be administered professionally. It is essential to deal with a reputable and established property management company with a proven track record. The property management company must be registered with the Estate Agency Affairs Board and hold a valid Fidelity Fund Certificate.
A Homeowners’ Association (HOA) is an association of home owners of a particular residential complex. The purpose of a homeowners’ association is to provide a common basis for preserving maintaining and enhancing their homes and property. A Homeowners’ Association is governed by the constitution of the complex.
All the owners in a particular complex make up the body corporate. Each member of a body corporate has a right to vote on particular issues pertaining to the complex. A body corporate is governed by the Sectional Titles Schemes Management Act of 2011.
It is essential to deal with a reputable management company with a proven track record. The management company should be registered with the Estate Agency Affairs Board and hold a valid Fidelity Fund Certificate.
A separate trust account is opened by Stonewood on behalf of the community scheme. This ensures clear accounting and reporting practices with monthly reporting and reconciliation of the bank account balance. Interest earned in this account is for the benefit of the community scheme. A monthly statement of the account and bank reconciliation is accessible to the community scheme’s trustees or directors.
The day to day management of a body corporate, HOA or residential estate entails collecting all levies, financial reporting, maintenance, supplying administrative services and common area management in conjunction with the trustees or directors.
A reputable property management company will offer the following services:
Since October 2016, new legislation allows for a contract to extend up to a period of three years. Upon expiry, the management contract may be renewed for another period of three years.
Any community scheme with more than one unit will benefit from the expertise of a property management company.
The trustees or directors are appointed by the body corporate or HOA to manage the affairs of the community scheme as well as the common property of the complex. It is not uncommon for a caretaker to be employed and to be directed by the trustees or directors with regards to the management of the common property. In the case of a residential estate or HOA, the trustees or directors are responsible for the management of the common property and any maintenance related to the upkeep of the common property. The managing agent may be required to assist the trustees or directors with any common property maintenance requirements.