Tips to run an effective body corporate in a sectional title scheme
Category Sectional-title Advice
With sectional title properties remaining popular, the role of trustees in a sectional title scheme is more important than ever. A board of trustees is tasked with managing the affairs of the body corporate; of course, this isn't always easy. A lack of trustee experience, expertise, time, and passion can often create issues within a scheme. Before you find members typing in "victimisation by the body corporate" or "body corporate bullies" into Google, read our helpful tips for trustee success.
Tip 1: Know the rules
A common source of contention is the rules that govern the sectional title scheme. For residents, trustees who don't enforce the rules, enforce them erratically, or don't follow a set standard can be frustrating. Trustee actions and duties should be governed by the Sectional Titles Schemes Management Act and the Prescribed Management Rules. Trustees should also keep up to date with changes in legislation, for example, the Protection of Personal Information Act (POPIA).
Tip 2: Budget correctly
Residents also raise complaints when there are special levies introduced for unforeseen projects or see wasteful spending of scheme money. This can be avoided with careful budgeting and financial practices. Preparing a solid budget, keeping all body corporate members aware of why and how money is being used, billing levies correctly, and ensuring all levies are paid can keep a scheme's finances in good shape.
Tip 3: Work with reputable service providers
As a trustee, you have the duty to ensure the scheme runs smoothly. When seeking the services of gardeners, painters, security, electrical services, plumbing, etc. you should always invest in the help of experts. This will help prevent disputes related to construction, maintenance, repairs, or improvements. Be sure to ask for industry accreditations, references from previous clients, and check online for reviews.
Tip 4: Take an active role
Trustees should take their responsibilities seriously; good governance of a scheme ensures property values remain high and residents are able to live in harmony. An active interest in the scheme is vital; always be aware of the service or maintenance work being done at all times. Communication is also important. You should ensure residents are always informed of any issues, maintenance work, meetings, or rule changes.
Tip 5: Act with integrity
As a trustee, you have been elected into your position with the expectation you will fulfil your duty in the best interest of the body corporate. Always keep this in mind as self-serving trustees can be the source of resentment in schemes. Act in good faith, exercise your powers abiding by the scheme rules, and avoid using your position to gain personal economic benefit from decisions made.
Tip 6: Settle disputes with care
With even the best-run schemes, disputes are inevitable. As a trustee, you should put steps in place for members of the body corporate to air their grievances and have them settled. This could be informally between both the trustees and the affected body corporate member/s or involve a third party like a managing agent.
The aggrieved body corporate member can file a complaint with the Community Schemes Ombud Service (CSOS) which provides a platform for dispute resolution. However, the aim should always be to resolve the issue quickly and quietly before it gets to this stage as this can impact the scheme's reputation.
Tip 7: Appoint a managing agent
For inexperienced or time-stressed trustees, hiring a managing agent can absorb many of the duties and responsibilities of the role. A managing agent can collect levies, coordinate maintenance and upgrades, perform administration and record-keeping, and keep the body corporate informed of any changes or updates within the scheme. They can also play a crucial role in managing disputes.
Contact De Lucia Group, your sectional title experts
De Lucia Group has extensive experience in the property management field. We take pride in successfully assisting sectional title schemes with proper administration and controls in terms of required legislation. To learn more about our managing agent services, send a message to De Lucia Group. You can also call Michael De Lucia directly on 082 493 1089, or email michaeldl@delucia.co.za for advice.
- visit our website
- like and view us on Facebook
- connect via LinkedIn
- visit our Instagram
- view our location
- sign up to our newsletter
Author: De Lucia Group
