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The Significance of Community Scheme Levies: Ensuring Stability and Sustainability

Managing Agents What Are Levies

As the leading managing agents and sectional title experts in Gauteng, we recognise the crucial role that community scheme levies play in maintaining the stability and sustainability of your scheme. In this article, we delve into the necessity of levies, their impact on the scheme's financial health, and the consequences of late or non-payment. Stay informed and safeguard the future of your community scheme.

Understanding Levies:

In the realm of community schemes, levies are more than just a financial obligation – they are the life essence that keeps your scheme thriving. Levies are determined through a comprehensive budgeting process, estimating the scheme's anticipated expenses for the upcoming financial year.

During the Annual General Meeting (AGM), the approved budget becomes the basis for calculating levies. In sectional title developments, these levies are distributed among owners based on their Participation Quota (PQ). In registered Homeowners Associations, the allocation follows the guidelines outlined in the Memorandum of Incorporation (MOI), often resulting in equal levies per property.

Generally, levies are charged in advance each month in accordance with the split mentioned above. These levies cover the expenses within the scheme’s budget, which may include, but are not limited to:

  • Repairs, maintenance & general upkeep to common property
  • Administration of the scheme (bank, auditors, managing agents etc.)
  • Insurance premiums
  • Gardening/cleaning services, wages of general workers etc.
  • Security
  • Association Levies
  • Municipal Charges (Eg. water, sanitation & electricity)
  • Legal costs, access control etc.
The Importance of Timely Payment:

It is imperative that owners grasp the significance of levies, as they are vital for the survival of the scheme. Late or non-payment of levies can have severe repercussions, impacting the scheme's financial obligations and the value of properties within it.

Comprehensive Coverage:

Levies cover a range of expenses within the scheme's budget, including, but not limited to:

  • Repairs, maintenance, and general upkeep of common property
  • Administration costs
  • Insurance premiums
  • Gardening and cleaning services
  • Security measures
  • Association levies
  • Municipal charges (such as water, sanitation, and electricity)
  • Legal costs
  • Auditors fees
  • Access control and more.
Failing to meet these financial obligations hinders the scheme's ability to fulfil its responsibilities and compromises the well-being of all owners.

Consequences of Late or Non-Payment:

Owners who default on their levy payments place an undue burden on their fellow scheme members who diligently fulfill their financial obligations. Continual defaulting can lead to serious repercussions, such as being referred to complex attorneys and facing legal action to recover the arrears. The consequences may include blacklisting, negative credit records, the potential auctioning of belongings, or even the property itself.

Financial Security and Sustainability:

By ensuring timely levy payments, owners contribute to the financial security and sustainability of their community scheme. Adhering to payment deadlines protects the scheme from potential financial distress and safeguards the value of each owner's investment.


At Solver, we understand the importance of community scheme levies in fostering stability and sustainability. As the leading managing agents and sectional title experts in Gauteng, we provide comprehensive services to keep owners informed and up to date with crucial industry news. Stay proactive, fulfil your financial responsibilities, and secure a prosperous future for your community scheme. Contact us today to experience our unrivalled expertise and commitment to your success.

Disclaimer: Please note that the above article is provided for informational purposes only and should not be considered as a comprehensive guide, legal advice, or a substitute for professional assistance in fulfilling the fiduciary duties of Community Schemes.

Solver, as one of South Africa's prominent property managing agent companies, has a proven track record of effective management since 2005. We specialize in managing a wide range of properties, including high-rise sectional title buildings, Homeowners Associations, share blocks, and apartments. Our team of experienced Property Managers and Managing Agents is ready to provide you with the support you need. For more information, please contact us at 010 822 2882.

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