Financial Services

THIS SERVICE IS OFFERED TO BODIES CORPORATE

Creative thinking and a practical approach to break the inadequate funding for the expenses of Bodies Corporate became necessary in the past year or two. Bodies Corporate are frequently held to ransom by a minority of owners defaulting on their levy payments.

The current financial climate in South Africa means that a large percentage of owners cannot pay the monthly levies payable to Bodies Corporate. In turn, this means that Bodies Corporate Trustees find it difficult to pay the budgeted expenses relating to maintenance, salaries, insurance etc.

According to a survey, the average levy income of Bodies Corporate was in arrears by 10% in 2008, but this increased to 25% in 2010.

The problem is in no way assisted by the legal system, which is slow and not always effective. The result is deficits problems for the Bodies Corporate. General maintenance, accounts and even insurance is falling into arrears. Trustees are also confronted by resistance from owners to pay levies when their properties are not being properly maintained.

Mamre Property Management now offers to guarantee the monthly levy income of Bodies Corporate. This will provide for the deficit. Mamre will pay the budgeted levy amount to the Body Corporate/Home Owners Association and in turn, Mamre will collect the relevant amounts from the owners. The Body Corporate/Home Owners Association will pay administration fees to secure this service and the administration fees are determined according to the total monthly levy income.

This relieves the capital flow constraints and allowing the Body Corporate/Home Owners Association to catch up on arrear accounts, maintenance and other priorities.

Home owners with arrears levy accounts, must pay interest on the outstanding amount in terms of the Body Corporate/Home Owners Association policy. In addition, owners must pay collection fees on arrears amounts, as required in terms of debt collection legislation.

The only amount payable by owners that regularly pay their levies, is the monthly appropriate administration fee.

Given a predictable cash flow, the Body Corporate/Home Owners Association can budget and manage more effectively, ultimately enhancing the asset value of all the owners in the Complex/Estate.

As part of the service, the necessary legal action will be implemented in cases where arrears accounts are not settled. This will be done according to current practice in terms of the Body Corporate/Home Owners Association policy.

Any Body Corporate/Home Owners Association qualifies to access the financial assistance, subject to Mamre’s approval, with the fixed cost of 2.5 per cent administration fee of the levy being paid over to the Body Corporate/Home Owners Association.