One of the major issues affecting the sectional title management industry is that of transparency, says PayProp CEO Louw Liebenberg. “The industry has historically been plagued by mismanagement with little to no transparency for unit owners. In some cases the necessary diligence required is not undertaken exposing the body corporate and owners to unnecessary risk.”
Much has been said and written about the updated Sectional Titles Schemes Management Act. With all the complexities involved in the day-to-day management of a sectional title scheme, it is not surprising. One can spend days trying to understand scheme rules, insurance, common use areas, fines and all the rest of a very long list of issues that come into play when people share a space.
As the largest processor of residential letting transactions in South Africa, PayProp recently launched PayProp Unit Management – a transparent and safe trust accounting platform built specifically for managing agents. This tool is based on the same platform that processes more than R8 billion in rentals each year.
“The need for a management system that provides a secure trust account platform with full visibility for agents and trustees; straight-through transaction automation and reconciliation within the banking environment, and regulatory compliance, has been a long time coming, and is something that PayProp is addressing head on,” says Liebenberg.
Liebenberg says the owners and body corporate members should insist on the following from the agents handling their sectional title:
- Safe and transparent handling of funds: There should never be a discrepancy between what is reported and what is transacted
- Regulatory compliance: All activities undertaken by the body should be in accordance with EAAB regulation
- Timely reporting: Reports that outline actual vs budgeted expenditure, trust account movements and balances, and levy movements
PayProp controls the lion’s share of residential letting-related transactions in South Africa. Currently it processes monthly rental receipts and beneficiary settlements for 95 000+ properties. PayProp recently launched a custom platform for sectional title unit management answering a dire need in the sectional title market.