Just Letting
• Administrative expenses
• Audit fees
• Contingencies such as burst water pipes or
damaged entrance gates or booms
• Managing agent fees
• Salaries of ground staff, security
• Other services such as DStv, window cleaning,
gardening services, etc.
“Owners must be able to
understand where their
levies are going and
question the amounts,
if they feel these amounts
are too high.”
Costs will increase on an annual basis but not by a
specific percentage. It is better not to decide on a
percentage increase but to assess everything, item
by item.
From a transparency point of view, and for the
trustees’ benefit (to be able to keep track of the
finances properly), the trustees must go through the
figures on a monthly basis. For example, if for some
reason the annual budget is reached before the year
is up, the trustees will realise there is a problem that
needs to be remedied.
This transparent reporting will show the owners
exactly what the levies are really used for, that these
levies are not paying for a service, that they are
actually sharing the operating costs of the whole
scheme. Thus, every building’s costs will be different.
Many property managers mistakenly compare levies
with another scheme but do not realise that that
building has a swimming pool and gym, whereas
theirs’ might not. Some buildings are new. The older
buildings will need more funds for up-keep and
maintenance.
Just Property Magazine
Issue 7 2015
27