FMS Property Managers News Letter

Dear Owners,

It is with great eagerness that we at FMS Property Managers present our very first newsletter to you.

We strive to keep our Owners and Trustees happy by ensuring that the management of your property scheme is well run. Our FMS Property Managers newsletters will provide you with insight and information, enabling you to make informed decisions regarding your scheme. We appreciate your comments on our services in our most recent survey, and we are happy to have you join us in this exciting new initiative.

Staff highlight

Samantha Thwaites - Portfolio Manager

Being in the property industry for so many years has taught me that there is always something to be learned; there is always something to be done. This is why I enjoy what I do. This job does not allow for any idleness, it is just so fast-paced 24/7.

I love that my team varies in age. “Age is nothing but a number” when we work together and interact. We also enjoy a good laugh and it makes the dreary day more bright, also it keeps me sane! Apart from work, I am a mom to two boys

and also a plant mom. I struggle going into a store and leaving without adding to my plant family! I cannot say that I have favourite plant. I love them all!! From the low-maintenance plant to my dramatic Weeping Fig, which has been on the brink of death and is now somewhat thriving! If I was ever pressured to choose one that I enjoy the most, it would be the Watermelon Peperomia. It’s just too pretty. I’m also learning how to make macrame, so before you know it, all of my plants will be hanging from the ceiling.

Superior Property Manager

Let’s talk Maintenance, Repairs and Replacements!

In accordance with the Sectional Title Schemes Management Act, each body corporate is required to establish a reserve fund, including a ten-year maintenance, repair, and replacement plan (MRR).

The purpose of an MRR plan is to ensure that the body corporate has enough funds to cover the costs of maintaining and repairing the common property over a ten-year period without having to raise any special levies. Ultimately, protecting the owner’s investment.

When implementing the reserve fund plan and calculating the annual reserve fund contribution, a few key factors must be considered.

ACCURACY OF THE PLAN

The accuracy of the plan is vital for the operational wellbeing of the scheme. We recommend all schemes have their MRR plan updated each year by specialist building consultants. Consultants have expertise in drafting MRR plans and provide onsite visits to assess the condition of the common property. They will also ensure the costs being budgeted for are based on accurate quotations and take inflation into account over the ten year period.

AFFORDABILITY OF COSTS

The act stipulates the minimum amount that should be contributed to the maintenance reserve fund each year. In addition, trustees must consider the plan’s ten-year cash flow to ensure that the act’s requirements are met and that the estimated contributions over the ten-year plan will raise sufficient cash to cover all future projects and costs.

It is vital not to fall into the trap of only

contributing the minimum amount required for the year in order to keep levies low. Following this strategy will ultimately lead to a cash deficit and maintenance being postponed to future years. A delay in maintenance on the building will have severe implications. A deteriorating building will result in an increase in maintenance costs. This could potentially result in a special levy being raised in order to cover the higher costs of maintenance and repair, particularly if they become more urgent.

STICKING TO THE PLAN

Once the MRR is established for the year, it is critical that the reserve fund be closely managed and that all required maintenance is carried out as planned. We utilise Weconnectu’s unique MRR reporting tools to monitor the spend for the year. This allows trustees to easily review the monthly spend against budget, ensuring that the scheme is well managed and maintained for the foreseeable future

Are you prepared for the electricity tariff increase?!

Effective 1 July 2023, the electricity tariff will increase by 18.65%. This will significantly impact many South Africans. We at FMS Property Managers can assist you in being prepared for this change.

ESKOM’S HOMEFLEX TARIFF

Alongside the tariff increase, Eskom has also introduced the ‘homeflex’ (time of use) tariff, allocating seasonal high and low demand periods and daily peak and off-peak times. Electricity will be billed under this tariff based on the period of time it is used, i.e., electricity consumed during peak times in the winter will be charged at a higher R/kW than the electricity consumed during off-peak times in the summer.

STRATEGIES TO OVERCOME THESE COSTS

Together with backup power experts InPower, we have provided strategies for Body Corporates and Homeowners Associations of Sectional Title Schemes to deal with Eskom’s continually rising cost of living.

Council and Tariff Reconciliation

Make sure that bulk meter readings are being correctly reconciled against the municipality’s charges on the building. Reconciling usage according to what is being charged ensures there is no ‘wastage’, either in power usage or finances, i.e., being overcharged for your water use by the municipality.

Load shifting

An electricity load management technique ‘shifting’ the load demand from peak hours to off-peak hours of the day. By installing timers on big energy users, such as geysers and battery backup packs, to run during off-peak hours, excessive costs can be avoided.

Owning your supply

There are long term benefits to body corporates owning their own electricity supply. Bulk buying electricity from InPower, as opposed to directly from the City means that body corporates can offer tenants discounted rates of electricity OR charge them rates in line with the City of Cape Town, retaining the excess funds.

Solar power

A sustainable solution to decrease electricity consumption, solar power is efficient for Body Corporates and Homeowners Associations, the initial capital investment will yield long term savings. As loadshedding stage changes continue, we have to take into account the reality of a greater drain on their finances. and can assist in the process.

Insurance claims

Claims Facilitation Services (CFS), our in-house insurance claim team, processes claims on behalf of managing agents, trustees, body corporates, and homeowners associations.

We are committed to providing a bespoke service to our clients. In line with this, the claim procedure is not the same for all our clients. Claim procedures are available to you via WeConnectU. to view your claim procedure. Alternatively, reach out to our team for assistance.

Until next time

By focusing on our clients and their needs, we remain committed to excellence. With a legacy of experience, a passion for compliance, financial well-being of a scheme and the fostering of an asset, we will always ensure that your investment is well maintained.

FMS Property Managers are your first choice in property management.