As a trustee, owner, or Managing agent of a scheme, it is extremely important to be aware of what is being charged on your sectional title rates and taxes account each and every month. We have seen thousands of accounts where the municipality estimates water and electricity usage for months on end, only for the Scheme to be hit with a huge bill once the municipality checks actual readings. For the financial stability of the scheme, it is so important for the trustees and managing agent to check statements regularly and keep accurate logs of normal spending so that you can be made aware of any unusual readings or amounts.
When it comes to managing your scheme’s municipal account, here are 5 things you should check on your monthly sectional title rates and taxes account:
General information
When you receive your municipal account on a monthly basis, you always want to ensure that the correct information is showing on the account. The general items listed below should be checked monthly:
- Scheme Name
- Account number
- Date
- Physical address
- ERF number and portion
- Type of consumer (private, sectional title complex, business/commercial)
- Zoning of property (to ensure the correct tariff is charged)
- Valuation
- Payments reflected correctly
- Rates and taxes are charged directly to the owner/scheme
Electricity usage
When it comes to electrical readings, it is imperative that these figures are checked on a regular basis to avoid estimates by the municipality on an ongoing basis. The municipality does allow schemes to send actual readings through on a monthly basis, so it is a good idea to keep a record of actual readings.
The electricity items you should keep track of each month are as follows:
- Actual reading vs estimates
- Correct tariffs being charged
- Remember: Each municipality has its own tariffs and may have Winter tariff vs Summer tariff vs General tariff
- Find out your correct tariff from your municipality website or from the municipality itself – tariffs are revised on an annual basis
Water usage
The municipality can also give estimates on water usage, so it is important to keep actual readings on record that can be sent to the municipality monthly.
The water items you should keep track of each month are as follows:
- Actual reading vs estimates
- Correct tariffs being charged
- Sliding scales can be used so it is important to know if these apply to your scheme
- Remember: Each municipality has its own tariffs and may have Winter tariff vs Summer tariff vs General tariff
- Find out your correct tariff from your municipality website or from the municipality itself – tariffs are revised on an annual basis
- Always check for water leaks – you may be able to notice these from a huge increase in water consumption
Sewerage
- These are charged very differently to electricity and water and can include various charges, such as:
- Charged for each connection
- Charged flat rate
- Charge connected to water usage
- Charges vary depending on the municipality
- Always check for double charging – sewerage is charged directly to the owners and to the scheme
Sectional title rates and taxes payments to the municipality
- Check that payments reflect on the statement
- Check the amounts month to month for consistency
- When moving Managing Agent, ensure your Managing Agent checks that all charges are on the statement correctly
Keeping your municipal account updated and correct can be a daunting subject for most owners and trustees, but if you keep a close eye on estimates vs actual readings and ensure that all payments are reflected correctly, you are already on a good path.
If you would like our team of experts to monitor this for you monthly, we charge a flat rate of R250 per month, ensuring your account stays correct, noting any issues from arising and navigating the various issues that may arise.
We supply monthly reports that show any changes and flag any inconsistencies on your account so they can be fixed before they become a major financial burden on your scheme.
