Residential Estate Industry Journal 4 - Page 49

RESOURCE MANAGEMENT The legislative environment Opportunities • • The emergence of a regulatory body (CSOS) and its • • Through organisations like ARC, there remains the inability to competently adjudicate on disputes could lead to poor decisions being handed down. • • The POPI Act, and the increased onus on directors to ensure proper control and compliance for the protection of personal information, will increase the liability risk facing directors and trustees. • • Disproportionate rates and taxes applied to owners within a residential community • • The Property Practitioners Act (PPA), once promulgated, could affect estate managers and directors. The existence of contradictory legislation, specifically regarding the Companies Act 2008 and other regulations. • • New architectural regulations relating to SANS 10400 Strengths ongoing opportunity to grow membership of most if not all residential estates in order to maintain a strong lobby group to challenge government and other institutions on issues that negatively impact on the industry. • • The professionalisation of the estate manager’s position and the awarding of professional designations to staff. • • The creation of a single voice for the residential community industry. • • The establishment of social responsibility programmes assisting underprivileged communities. Threats • • Government and other legislative bodies who claim to have a right to intervene regarding the rights of • • The wealth of the members of the HOA allows for the HOA to be able to afford security and other services that are necessary to ensure the safety and security of people living in organised residential communities. • • An increased level of unity amongst residential community management, where networking and sharing of ideas and solutions are practiced. • • The residential community product is sound in relation to creating a safe and harmonious lifestyle for residents. an HOA to self-govern remain a threat. • • Lack of public awareness on the roles and responsibilities of the HOA in respect of applying rules and regulations, resulting in poor PR and negative publicity. • • Lack of awareness amongst national and local government of the value all residential communities add to the economy as well as government objectives make the industry and individual estates a target for increased taxation. Weaknesses • • The way HOA companies and other schemes elect directors and trustees is a potential weakness in that these leaders are not elected because of their skills or knowledge in residential community matters, but rather as a simple nomination by a fellow member. • • Lack of proper succession planning and the current average age of estate management. • • Disparity in recruitment and employment practices of management staff, specifically on salary structures and other benefits. • • No common approach to budgeting and financial planning, specifically relating to financial reserves for future repair and replacement costs. ARABELLA COUNTRY ESTATE THE CLARENS GOLF AND TROUT ESTATE PAGE 47