RESOURCE MANAGEMENT
The legislative environment Opportunities
• • The emergence of a regulatory body (CSOS) and its • • Through organisations like ARC, there remains the
inability to competently adjudicate on disputes could
lead to poor decisions being handed down.
• • The POPI Act, and the increased onus on directors
to ensure proper control and compliance for the
protection of personal information, will increase the
liability risk facing directors and trustees.
• • Disproportionate rates and taxes applied to owners
within a residential community
• • The Property Practitioners Act (PPA), once promulgated,
could affect estate managers and directors. The
existence of contradictory legislation, specifically
regarding the Companies Act 2008 and other
regulations.
• • New architectural regulations relating to SANS 10400
Strengths
ongoing opportunity to grow membership of most
if not all residential estates in order to maintain a
strong lobby group to challenge government and
other institutions on issues that negatively impact
on the industry.
• • The professionalisation of the estate manager’s
position and the awarding of professional designations
to staff.
• • The creation of a single voice for the residential
community industry.
• • The establishment of social responsibility programmes
assisting underprivileged communities.
Threats
• • Government and other legislative bodies who claim
to have a right to intervene regarding the rights of
• • The wealth of the members of the HOA allows for the
HOA to be able to afford security and other services
that are necessary to ensure the safety and security
of people living in organised residential communities.
• • An increased level of unity amongst residential
community management, where networking and
sharing of ideas and solutions are practiced.
• • The residential community product is sound in
relation to creating a safe and harmonious lifestyle
for residents.
an HOA to self-govern remain a threat.
• • Lack of public awareness on the roles and responsibilities
of the HOA in respect of applying rules and regulations,
resulting in poor PR and negative publicity.
• • Lack of awareness amongst national and local government
of the value all residential communities add to the
economy as well as government objectives make the
industry and individual estates a target for increased
taxation.
Weaknesses
• • The way HOA companies and other schemes elect
directors and trustees is a potential weakness in that
these leaders are not elected because of their skills
or knowledge in residential community matters, but
rather as a simple nomination by a fellow member.
• • Lack of proper succession planning and the current
average age of estate management.
• • Disparity in recruitment and employment practices of
management staff, specifically on salary structures
and other benefits.
• • No common approach to budgeting and financial
planning, specifically relating to financial reserves
for future repair and replacement costs.
ARABELLA COUNTRY ESTATE
THE CLARENS GOLF AND TROUT ESTATE
PAGE 47