Sectional title managing agents are today an increasingly important part of SA’s property infrastructure, especially where body corporate trustees are too busy or too inexperienced to manage a scheme efficiently, says Michael Bauer, general manager of IHFM.
“In a very few cases we have been critical of managing agents,” he says. “However I myself am a member of NAMA, the National Association of Managing Agents, and I myself am a managing agent on several schemes and I know how vital the MA’s role can be.”
Generally, adds Bauer, good managing agents tend to improve the performance of bodies corporate and homeowners’ associations quite radically and, he adds, “it has to be said that their fees are not expensive considering the benefits they deliver and the hours they put in”.
What trustees often overlook, says Bauer, is the huge time and effort saving that an efficient managing agent will bring about. Trustees (who are not paid) should, says Bauer, not be burdened with minor administrative tasks such as the collection of arrear levies and the payment of municipal accounts and other creditors.
“A good managing agent will review all expenses in the current budget and will realise savings because of his knowledge of market prices and his ability to draw on a good supplier base.”
Some trustees, says Bauer, are far too much involved with their bodies corporate and destroy their own lifestyles and enjoyment in the process.
“I have known trustees who are so conscientious that they are putting in R10,000 to R20,000 worth of work per month without getting any reward back and in some cases without even being thanked by their members.”
Discussing the fees of managing agents, Bauer says that firms like his which have large volumes are able to give discounts that greatly reduce the cost per unit, i.e. the cost to each individual member – and this is particularly beneficial to larger bodies corporate and homeowners’ associations. Many schemes taken on by IHFM were virtually bankrupt at the time they moved in but are now cash flush, he says.
“This is not difficult to achieve if the managing company understands how to go about their business,” says Bauer.
In some cases, adds Bauer, it is necessary for IHFM to call in a funding company such as Propell and in other cases, to get matters right they have to negotiate with the creditors to work out payments over a specified time period so as to maintain their cash flow.
Michael Bauer is general manager of sectional title specialist firm IHFM (Pty) Ltd and a regular contributor to www.sectionaltitlesa.co.za. For further information on IHFM’s services go to www.ihfm.co.za or telephone Michael Bauer on 083 255 4442. He can also be emailed on michael@ihfm.co.za.
Hello, what is a reasonable cost for a body corporate fee and levy in the Polokwane area? or will this depend on the sixze of the unit? Also is it possible that Body Corporate fees increas by almost 80% and levies by a 70%?
Dear Rahima,
Thanks for your email. This is difficult to answer as it depends on the actual size (floor space) of each unit. Moreover, it also depends on the type of building, size, age, extras, lifts, air conditioning, etc.
Hence, you won’t be able to compare.
Hope this helps.
Michael