More news from my colleagues at SAPOA. I am very proud of the research, monitoring and oversight currently being performed by our organisation.
It is important that we make every effort possible to identify potential problems at an early stage and engage with the relevant parties (like Municipalities) to overcome difficulties together rather than resort to litigation after the fact (e.g. SAPOA v City of Joburg). This has been clearly identified within the SAPOA structures and several meetings have been held with Mayors, City Managers and similar decision makers.
Commercial and Property Attorney
Sapoa raises concern over escalating property rates
The steep escalation in municipal costs in South Africa has led to the SA Property Owners Association (Sapoa) appointing specialist consultancy Rates Watch to research budgets for the coming year.
The mandate from Sapoa, the voice of the commercial and industrial property sector, is to focus on unearthing budget information from the 11 largest municipalities on key property-related costs, such as rates and taxes, electricity and water.
Rates Watch must also identify, analyse and collect data on relevant municipal policies and legislation and the medium-term revenue and expenditure frameworks at these large municipalities.
Sapoa warned last year that commercial property owners were poised to challenge the major urban municipalities over high increases in rates, which they said were unsustainable.
Estienne de Klerk, Sapoa's president, said last year that the association would question the legality of these increased rates and if it did not receive a satisfactory response, it would approach the local government minister, or even the finance minister.
'Challenging municipalities in court will be our last resort. We have always had a collaborative approach with government and try to resolve these things out of court.'
Sapoa chief executive Neil Gopal has adopted a softer approach, stating yesterday that its primary goal was to alert property owners and investor members to changes in property-related municipal costs that could affect them.
'As a sector, commercial and industrial property wants to contribute in a positive way towards the efficient functioning of municipalities.
'Sapoa members contribute significantly to the rates base and we believe it's in the interest of ourselves and municipalities across South Africa to partner on this matter,' Gopal said.
He did admit that rising municipal rates and taxes were 'a hot-button issue' and one that negatively affected not only operating costs and gross rentals but also made demands on property management resources.
- I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.Please visit our website at www.prop-law.co.za for more details.I am an elected Committee Member of the Property Committee of the Association of Pretoria Attorneys and through my involvement, I like to ensure that I am constantly at the "sharp-end" of Conveyancing Practice.
I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.
14 February 2014
I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.
Please visit our website at www.prop-law.co.za for more details.
I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.
Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.