As a member of a small sectional title apartment block (totalling 6 residential units), I am becoming increasingly concerned regarding the burgeoning costs of monthly levies and associated management fees.
The managing agent is responsible for building insurance, banking, bi-weekly garden service, weekly refuse removal, weekly communal property cleaning (sweeping the corridor) annual audit and annual AGM responsibilities. Ad hoc items like keys and general maintenance, geyser issues, dispute settlement, complaints etc are reported and (meant to be) handled by them also.
The muncipal rates and electricity (pre-paid) are 3rd party, and for the individual owners seperate account. Water is handled by the Managing Agents as well.
The management fees are exorbitantly high, (especially for such a small complex) and I would like to propose an alternative measure, as a cost saving exercise to the Home Owners Association.
- In terms of the Sectional Title Act, (the Law) - is there anything legislated that a HOA must be affiliated with a Management Company of sorts?
- Is it possible for a small HOA like ours, with basic, minimal needs and services to be administered by a independant book keeper, accountant, or broker rather?
My personal feeling is that our complex is too small, (and simple) requiring only the most basic services, that our current Property Management firm is overkill (in this instance), and we'd be better off elsewhere, at a smaller more independant firm that charges for our basic services, where we'd be getting better value for money.
Should anyone with property/sectional title knowledge have any advice or questions - I'd be extremely happy to receive.
The managing agent is responsible for building insurance, banking, bi-weekly garden service, weekly refuse removal, weekly communal property cleaning (sweeping the corridor) annual audit and annual AGM responsibilities. Ad hoc items like keys and general maintenance, geyser issues, dispute settlement, complaints etc are reported and (meant to be) handled by them also.
The muncipal rates and electricity (pre-paid) are 3rd party, and for the individual owners seperate account. Water is handled by the Managing Agents as well.
The management fees are exorbitantly high, (especially for such a small complex) and I would like to propose an alternative measure, as a cost saving exercise to the Home Owners Association.
- In terms of the Sectional Title Act, (the Law) - is there anything legislated that a HOA must be affiliated with a Management Company of sorts?
- Is it possible for a small HOA like ours, with basic, minimal needs and services to be administered by a independant book keeper, accountant, or broker rather?
My personal feeling is that our complex is too small, (and simple) requiring only the most basic services, that our current Property Management firm is overkill (in this instance), and we'd be better off elsewhere, at a smaller more independant firm that charges for our basic services, where we'd be getting better value for money.
Should anyone with property/sectional title knowledge have any advice or questions - I'd be extremely happy to receive.
