Sectional Title and HOA Property Management

One-stop property solutions

0861 664 444

www.trafalgar.co.za info@trafalgar.co.za

One-stop property solutions

CONTENTS Page

• About Trafalgar 1

• Services 1

i) Billing,collectionsanddebtcollection 2

ii) Financialmanagementandreporting 3

iii) Administration,secretarialandadvisoryservices 3

iv) InsuranceBrokingServices 3

v) Propertywebsites 4

vi) Annualmaintenanceinspectionsandmaintenanceplandevelopment 4

vii) Take-onhealthcheck 4

• Additional services 5

i) Caretakerservice 5

ii) Bodycorporate,homeownersassociationandshareblockloans 5

iii) Levysolutions 5

iv) Trusteetrainingandadvisoryservice 6

v) Estatemanagementservice 6

vi) Financialmanagement 6

• Sample management reports 6

• Registration certificates 7

• Reference buildings 7

• Why Trafalgar is a preferred managing agent 8

About Trafalgar

Trafalgar’s core business is property management services for sectional title schemes and home owners associationsacross South Africa.Trafalgar has a successful 50-year property management track record, dating back to the openingofthefirstsectionaltitleregistersinSouthAfrica.Trafalgarholdscurrentregistration certificateswithalltheregulatorybodiesrelevanttomanagingagentsinSouthAfrica:theEstateAgencyAffairsBoard(“EAAB”),theNationalAssociationofManagingAgents(“NAMA”)andtheCouncilforDebtCollectors.

Trafalgarcombinesspecialistskills,customisedcomputerinformationsystems,anationalinfrastructureandeconomiesofscaletoprovideacomprehensivepropertymanagementservicewithclientserviceexcellenceanoverridingobjective.Trafalgar’s current portfolio under management covers approximately 65 000 residential units in over 1 200 buildingsnationally,managedbysevenregionalbranchesandover350staff.

Sectional Title and Home Owners Association Management Services

Trafalgarprovidescomprehensivesectionaltitleandhomeownersassociationmanagementserviceswhicharedescribedin more detail below. A designated portfolio manager, supported by a portfolio administrator, serves as a single pointof entry for all trustee and owner service requests. Specialised support teams, comprising accountants, maintenanceadministrators,debtcollectors,municipalaccount,creditor’spaymentandclearancecertificateadministrators,aswellasbuildinginspectors,closelysupporttheportfoliomanagerteams.Considerableemphasishasbeenplacedononlineandelectronicreportingtoprovidefastandefficientmanagementinformation;managementreportsandapropertylibraryaredirectlyavailablethroughanonlinepropertyportal.World-class,samedayservicedeliveryistheservicedeliveryobjectiveforallTrafalgarportfoliomanagementteams.

Trafalgar’spropertymanagementapproachiscentredonaccuratebudgetinginadvanceoftheproperty’syearend(ideallythetenthmonthofthefinancialyear),includingadetailedmaintenanceplanandassociatedmaintenancecosts.Inthisway,thelevyincomerequiredtocoverallnecessaryandforecastexpensesisaccuratelyquantified.Anallowanceisalsomadeforbuildingreserveswhichareimportanttoachieve.

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Stableandconsistentcashflowtogetherwiththeabilitytomeetconsistentmaintenanceexpensesareachievedinthiswayandarecriticalsuccessfactorsforawell-managedproperty.Best-practicegovernancewithcreditorpaymentapprov-als, prompt annual audits, annual general meetings and statutory returns are also closely managed. Detailed financialmanagementreportsarepreparedandcirculatedonamonthlybasistocloselymanageexpensesandvariances.Significantattentionisplacedonservicedeliveryaroundday-to-dayservicerequirementssuchasobtainingquotes,correspondencetoownersandcirculatingmeetingminutestogetherwithactioningthemattersarisingfromtheminutes.Regularcommonpropertyinspections,togetherwithmaintaininghighfacilitymanagementstandards,areextremelyimportantandshouldbeoverseenbyresidenttrusteesoraTrafalgarcaretakerservice.

Trafalgar’ssectionaltitleandhomeownersmanagementservicecoversthefollowingservicescopewhichcanbetailoredtospecificbuildingcircumstancesandrequirements:

i) Billing, collections and debt collection:

• Monthlybillinganddistributionofownerlevystatementsbye-mail,postordeliverytotheproperty • Collectionofleviesandmonthlyserviceschargesthroughavarietyofpaymentchannels • Debtcollectionofarrearlevies,utilisingaspecialiseddebtcollectioncomputerinformationsystem • Liaisingwithattorneysappointedtomanagelegalcollections.

ii) Financial management and reporting:

• Preparationoftheannualbudgetofincomeandexpenditureincludingthelevyschedule • Paymentofandaccountingforapprovedexpenses,includingmunicipalaccounts,salariesandwages • Monthlymanagementreportingonlineandbye-mail.Managementreporting packsincludeincomestatementand performancetobudgetreports,balancesheet,levyroll,unitarrears,surplusreportandinvestmentaccountbank statement(s).

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ii) Financial management and reporting: (continued)

• Annualauditfilepreparation • Completionandsubmissionofstatutoryreturns • Surplusfundsinvestedincallaccountstomaximiseinterestearnings • Payrolladministration.

iii) Administration, Secretarial and Advisory Services:

• PreparationandcirculationofnoticesforAnnualGeneralMeetings • Arranging,attendingandtakingminutesfortrusteemeetings • Preparationandmailingofownerandserviceprovidercorrespondence • Preparationandissuingofclearancecertificates • SectionalTitle,propertyandfacilitymanagementadvice • Sourcingofbuildingmaintenancequotes • Liaisonwithmaintenanceandbuildingcontractors • Archivingofstatutoryandpermanentbodycorporaterecords,utilisinganelectronicdocumentmanagement systemforsecurityandconvenientdocumentaccess.

iv) Insurance Broking Services:

• Legislation,setoutinorcontemplatedbyRule29oftheprescribedManagementRulessetoutinAnnexure8totheRegulations promulgated under the Act, requires that bodies corporate have in force insurance cover; HOA’s andShareblockcompanies,whilenotlegallyobligedtohaveinsurancecover,wouldbeprudenttohaveattheveryleastpublicliability,directors’liabilityandarguablycommonpropertycover.TrafalgarFinancialServices(TFS),inconjunc-tionwithleadingunderwriters,hasdevelopedaspecialistsectionaltitleproduct,tailor-madeforbodiescorporateandinlinewithlegislativerequirements

• TFSoffershighlycompetitivepremiumswithoptionalextrassuchasexcesswaiversandshortfallcover.Ourprofes-sionalstaffandspecialistinfrastructureensurefast,effectiveandconvenientclaimsmanagement.

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v) Property Websites

Each Trafalgar-managed property will have access to a building website linked to Trafalgar’s Property Portal,providingaccesstousefulinformationsuchascontactdetails,plans,rules,financialreports,frequentlyaskedquestions,applicablelegislationandaphotogallery.

Avotingfunctiontotestowneropinion,abulletinboardforsharingcommentsandmessagingoptionstosendownerse-mailortextmessagesarealsoavailable.

vi) Annual Maintenance Inspections and Maintenance Plan Development

Routineandreactionarymaintenancefacilitationishandledbyadedicatedmaintenancedepartmentviainplaceandforceservicelevelagreementcontractorrelationships.

SectionalTitleBodiesCorporatemaintenancerequirementsasdirectedbythenewlegislation(PMR22oftheSTSMA),

canbefacilitatedwithprofessional,external,maintenanceexpertswithwhomTrafalgarhaslongstandingrelation-shipsor,detailedfinancialinformationcanbeprovidedtothetrusteestoenablethemtocompiletheirownplansandprograms.Incertaincases,buildinginspectionscanalsobearrangedtoassistthetrustees.

Trafalgarcanassistwithfacilitatingthedocumentationof10yearmaintenanceplansrequiredforsectionaltitlebuild-

ings(specifiedintheSTSMAct)eitherbyrecommendingapanelofmaintenancespecialistswhoofferthisasaservice,oralternativelybyprovidingabuildinginspectionreportandscheduleofhistoricmaintenancecoststotheTrusteestocompilethenecessaryplan.

vii) Take-on Health Check

AllnewpropertiestakenonbyTrafalgararecarefullyscreened,utilisinga legalcompliance ‘health-checkchecklist’.This isa freeservicetopromotegovernanceexcellenceand longtermpropertymanagementsuccess.A reportandactionlogarecompiledforthetrusteestoaddressanyidentifiedlegalcompliancegaps.

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Additional Services

Optionaladditionalservicestocomplementthestandardmanagementservicescoveredaboveandforspecificbuildingcircumstancesandrequirementsare:

i) Caretaker Service

Trafalgar’scaretakerservicewillmanagecontractors,gardeners,cleaners,securityguardsandmaintenanceworkersatthepropertyonapart-timebasisasrequired,tosupportandachievefacilitymanagementexcellenceattheproperty.Caretakerswouldalsobeavailabletopurchaseanddeliverconsumablessuchaspetrolandcleaningmaterialsaswellastochangecommonarealightbulbswhenrequired.Thisserviceelementwouldsuitbuildingswherelimitedtrusteecapacitycreatesgapsandchallengeswithonsitefacilitymanagement.

ii) Body Corporate, Home Owners Association and Share Block Loans

Routine maintenance and improvement projects such as painting, waterproofing and security installations arevitalforpreservingandenhancingthevalueofapropertyandthelifestylesofresidents.TrafalgarFinancialServicesprovidesloanswithflexibletermsandcompetitiveratesspecificallyforrefurbishmentprojectsortosettlemunicipalarrears.Aloanofthisnatureoftenallowsonerousspecialleviestobeavoidedaswellasinflationaryescalationsthatarisewhenmaintenancerequirementsarepostponed.

iii) Levy Solutions

Eliminatethepressuresoflatelevypaymentsandarrearswithaproductthatsettlesthefulllevyincome,lessacosteffec-tivefinancecharge,onthe1stworkingdayofeachmonth.Levysolutionsachievesaconsistentandpredictablecashflowforapropertyandsupportsaccuratebudgeting,maintenanceplanningandefficientcreditorpayments.At inception,TrafalgarFinancialServicespaysacrossthefulldebtor’sbooktounlockthevalueembeddedinarrearleviesandsoallowtheimmediatesettlementofarrearcreditors(municipalarrears)andtoaddressmaintenancebacklogs.Legalcosts,alltoooftenasignificantcashflowimpedimentforthebuilding,forcollectingthelevyarrearsarefinancedbyTrafalgarFinancialServicesensuringuninterruptedlegalrecoveryandprocessdirectlyoverseenandmanagedbyanin-houseattorney.Levysolutionsmaybeofinterestforsmalltomedium-sizedbuildingsthatareexperiencingcashflowchallengesarisingfromafewownersfallingintolevyarrears.Thisproductisflexibleandcanbecancelledwith30-days’noticewhenthearrearlevieshavebeencollected.

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iv) Trustee Training and Advisory Service

Interestedtrusteescanobtainfurther informationbye-mailingtraining@trafalgar.co.za.Trafalgaralsooffersafreeadvisoryserviceforallclientsaswellasexternalbuildings;telephonicoronlinesupport.

v) Estate Management Service

Trafalgaroffersanestatemanagementservice,includingfullfacilitymanagement,withanonsitemanagement capability,including: •Contractormanagement(includingregistrations,adherenceandcompliancetocontractoragreements) •Pavementdepositmanagement •Penaltymanagementandcollections •Buildingsiteinspections • Disputeresolution •Enforcementofrules • Architecturalguideliness •Managementofestatestaff.

vi) Financial Management

Trafalgarisalsoabletoprovideafinancialmanagementserviceexcludingmaintenanceadministrationandtrusteemeetingattendance.Theservicescopeforfinancialmanagementincludesbilling,collections,debtcollection,approvedcreditorspayments,monthlyreportingandannualauditfilepreparation.Apropertywebsitewithonlinereportingisalsoincluded.Thisservice,atreducedcosttoafullmanagementservice,suitsbuildingswithveryhands-ontrusteeswhoarecomfortabletocoverbuildingmaintenanceandmeetings.

vii) Executive Managing Agent Trafalgarisequippedtoprovideanexecutivemanagingagentserviceasenvisagedinthelegislativeclausecopiedbe-

low,promulgatedonthe7thOctober2016.ThisservicecoverstheroleofTrusteeswheretime,capacityandlocationfortraditionalTrusteeinvolvementatthebodycorporate,arechallenges.Asstipulated,TrafalgarwillcoverboththeroleofmanagingagentandtheboardofTrustees,circulatingtoallownersonaquarterlybasis,afullmanagementreportandnewsletter,explainingthefinancialandfacilitymanagementperformanceofthebuildingtogetherwithrelevantplanningahead.Theoverridingobjectivesfortheexecutivemanagingagentservicewillbegoodgovernance,legisla-tivecompliance,facilitymanagementeffectivenessandsoundmaintenanceplanningtoaddvaluetothebuildingandindividualsectionsoverthe longterm.Forafulldescriptionofthe legislativeprovisionsforanexecutivemanagingagent,pleaseseehttps://www.trafalgar.co.za/executive-managing-agent.

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Sample Management Reports

EffectivefinancialmanagementandreportingarecriticalpropertymanagementsuccessfactorsandarecompetitiveadvantagesofTrafalgar’spropertymanagementservice.Detailedmanagementreportsarecirculatedtotrusteesonamonthlybasisbye-mail;theycanalsobeaccessedonlineinrealtimefromTrafalgar’sProperty Portalandthebuilding’swebsite.Thereportformatanddetailcanbecustomisedtomeettrustees’preferencesandcoverallthe importantfinancialmanagementtransactionsforthebuilding’spriormonthoperations.

Themonthlymanagementreportsarepreparedandreviewedbyanaccountantonamonthlybasistogetherwithamunicipalpaymentreconciliation,notingthatmunicipalexpensesgenerallyrepresentcloseto50%ofaresidentialproperty’sexpensesandarethereforeveryimportanttomanageclosely.Utilityrecoveriesaremeasuredandreportedtofocusoneffectiverecoveries,animportantfinancialmanagementobjective.

Theaccountantsaddnotestoexplainmaterialvariancestobecloselyinvestigatedandmanagedahead.Asample managementreportingpackcanbeviewedonline.

Themonthlyaccountingandreportingapproachfacilitatesatime-efficientauditfilebeingproducedfortheappointedauditors,therebyreducingauditcostsandanydelaystoachievetheauditedfinancialstatementsandAnnualGeneralMeeting.Trafalgarutilisesaworld-classdocumentmanagementandworkflowsolutionforsecuredocumentarchivingandcreditorinvoiceprocessing.Theannualauditfilecanbeelectronicallygeneratedwithinafewminutesandmadeavailabletotheappointedauditorsonlinetofurtheracceleratetimelinesandreduceauditcosts.

Registration Certificates

All Trafalgar’s current registration certificates are available online. It is important that a managing agent is fullyregisteredwithalltherelevantindustrybodiesandcompliantwiththeapplicablelegislationandcodesofconduct.

Reference Buildings

WrittenreferencesareavailableonrequestfromneighbouringorcomparablepropertiesmanagedbyTrafalgar.

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Why Trafalgar is a preferred managing agent

• Trafalgarisawell-establishednationalbrandwitha50yeartrackrecord,existingnationalfootprintandspecialisedstaffandcomputersystems.

• Allnecessaryregulatorybodyregistrationsareinplaceandingoodstanding:EAAB,NAMAandCouncilforDebtCollectors.

• Free online property portal with real-time and convenient access to your property’s documents, financial reports,buildinginformation,contactdetailsandownermessagingfunctionality.

• Dedicatedportfoliomanagerteamcreatingasinglepointofcontact,communication,servicedeliveryandaccountability.

•All portfolio managers have completed a UCT Sectional Title Management course and have many years of propertymanagementexperience.

• Comprehensivefinancialmanagementreportscirculatedmonthlybye-mailandavailableonlinetoeffectivelymanageexpensesandvariances.

• Electronic document management system to secure and archive all property documentation, reports and records.Alsosupportselectronicauditfilecollationtoachieveatime-andcost-effectiveaudit.

• Real-timetextmessagesconfirmingallbuildingpaymentsforaddedsecurity.

• In-housefinancialservicesproducts:refurbishmentloans,levyfinancing&insurancebroking.

• Efficientfacilitationofyear-endaudit,budgetpreparationandmonthlymunicipalaccountreconciliationsbyadedicatedTrafalgaraccountingteam.Publicofficerrole,CIPCsubmissionsandtaxreturnscoveredwhererequired.

• Annualmaintenanceinspectionsconductedtocompileamaintenanceplanandbudget.

• Take-onhealthcheckattheinceptionofmanagingaproperty,applyingadetailedlegalcompliancechecklist.Ahealth-checkreportandactionlogarerecordedforthetrusteestoaddressidentifiedcompliancegaps.

• In-houseattorneywhooverseeslegallevycollectionfilemanagement.

• TrusteeanddirectortrainingprogramsavailabledirectlyandonlineviaPaddocksatdiscountedrates.

Please contact queries@trafalgar.co.za for any questions, advice, or support you may require or sales@trafalgar.co.za for a proposal.

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One-stop property solutions

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0861 664 444

www.trafalgar.co.za info@trafalgar.co.za