There are very few bodies corporate that function effectively without a managing agent. The responsibilities placed on trustees can be onerous, requiring dedication as well as knowledge of sectional title legislation. To make matters worse, trustees are not paid for their time and often not appreciated. The impact of low fees on service delivery The appointment of a managing agent is contractual of...
The income from levies is what enables a body corporate to pay for services provided and maintenance of the common property. As members in the scheme are proportionately responsible for their share of levies, it is essential that they pay their levies timeously. When members do not pay their levies, it can quickly result in financial distress for the body...
While many schemes have their financial year-end in February or June, it will vary from scheme to scheme. Regardless of the month in which the financial year falls, a body corporate must prepare an administrative budget for submission at the annual general meeting (AGM). To do this, the trustees must plan to allow themselves the time to put together an...
While most bodies corporate rely solely on levy income, some try to find additional ways to bolster their income. One additional source is to rent common property to members of the scheme or to third parties. Who decides if common property can be rented? Trustees are responsible to manage, administer and maintain common property which collectively belongs to all scheme members in...
One of the most important responsibilities trustees have is to ensure that their scheme is adequately insured against unforeseen events such as storm damage or destruction by fire. Sectional title legislation obligates bodies corporate to have independent property valuations performed for insurance replacement purposes every three years. The benefits of regular valuations Prior to the changes in legislation, bodies corporate rarely had independent...