RESOURCE MANAGEMENT
THE RESIDENTIAL COMMUNITY INDUSTRY -
CHALLENGES , OPPORTUNITIES AND THREATS
Through the efforts of The Association of Residential Communities ( ARC ), members of the industry come
together on a regular basis to explore best practices and share experiences . During these sessions , which were held across the country with over 100 member estates in May 2017 , we explored the impact of the different environments on the industry and conducted a PESTEL ( Political , Economic , Social , Technological , Environmental , Legislative ) and SWOT ( Strengths , Weaknesses , Opportunities and Threats ) analysis . The following results emerged :
The political environment
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The increase in protest marches and the violence that goes with this is reaching the gates of residential communities , where the blockage of an exit of a residential estate is a soft target for these demonstrators .
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The publicity around the political environment in South Africa is affecting international investment purchases of property in residential estates and the development of new estates , thus impacting on property values and sales . Rentals , however , have increased because of this .
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Poor service delivery by local government , as well as fraud and corruption , leads to increased taxation .
The economic environment
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The domestic economic situation will put strain on the industry ’ s ability to conduct meaningful financial planning specifically related to reserves and investments for future repairs and maintenance of assets .
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Junk status ratings will cause concern amongst property investors where rentals will increase but properties could be sold at below market value .
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Inflated costs of security and other services , including water , will impact on future levies on homeowners .
•• The ability of members to pay levies and other costs stipulated by the HOA will be affected by the economic climate .
The social environment
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Trade unions could target residential communities to gain recognition agreements with the HOA .
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The introduction of higher minimum wages may make it more difficult to employ staff .
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Dealing with cultural differences of members and residents is difficult , specifically when it comes to holding cultural events and religious celebrations .
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The increased use of drugs amongst the youth is becoming more prevalent .
The technological environment
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Security technology and the availability of innovative solutions require staying abreast with technology . Choosing the most appropriate technologies to suit the environment and the region is costly and time-consuming .
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Estate management technology solutions are becoming more widely used to ensure sound communications and administration .
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Social media and the ease with which members can cause damage to the reputation of the community are on the increase , especially where social media are used to spread unfounded rumours .
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Ensuring the protection of personal information and confidentiality is a high-risk issue because of the advances in technology and the increase in hacking activities .
The environmental environment
•• Water quality and rights to water .
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Alien species and the legislated requirements for the planned removal of these .
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Energy and the pressures placed on communities to install alternative power solutions .
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Waste management as a potential key imperative for residential communities .
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