Understanding, determining, educating and collecting
Understanding the components
Before we do anything, we research our subject thoroughly, looking at historical expenses, which then enable us to predict those in the year ahead and plan accordingly. These include:
- General expenses – consists of day to day operating and administrative expenses used to maintain a community, whether residents live in an apartment or villa
- Capital expenses – established to collect and maintain appropriate funding for the community’s future asset replacement needs
- Special levies – a one-off charge for items not in the design or covered under the General Fund or for special unbudgeted for requirements
- Master Community levies – go towards maintenance of areas that are not part of any particular community but are common to the Master Community shared by all
Determining the service fee
The community service fee is the owner’s annual contribution to his/her share of the common expenditure of the community.
The service fee rate is determined based on the estimated annual expenditure of the community, for the operation and maintenance of the common property. A typical budgeting process includes, but is not limited to, the following:
- Historical expenses
- Utility consumption and rates
- Resource allocation on site
- Service provider contracts
- Capital assets evaluation (maintenance, repair and replacements)
- Surplus/deficit adjustment from previous years (if any)
Our invoices give a detailed breakdown of how we arrive at the year’s fee, and we send out an information pack with further details about their community relating to the previous year, with news of key events and developments.
We also regularly run various campaigns to promote awareness on the importance of residents paying their fees and the impact it might have on the wider community if they delay their payment. Posters and a flyer are prominent too so that no-one is left with any doubt as to the fact that they need to pay their fee and the value of it to their community!
We make it as easy as possible for our residents to pay their service fees – by presenting a straightforward, transparent approach with a number of payment options:
Each of our communities boasts a healthy service fee collection rate. We believe this high figure is a testament to the quality of service we deliver our residents throughout the year. When the invoice comes along, the majority sees the value of our work and they are happy to pay.
Not only do we work hard to educate our residents about the importance of paying their fee, but we also adopt a robust strategy to claim overdue payments. This has proved successful in boosting the collection of outstanding dues.