A community scheme’s main source of income levies. Every owner in a community scheme must contribute monthly, towards the day-to-day management and upkeep of the scheme – this is known as the levy. Typically it will include expenses towards common property and administrative costs. These funds are very important in supporting the scheme and ensuring its success and financial longevity of the scheme.

It should be kept in mind that levies do not cover any expenses relating to maintenance and repairs of an owner’s section which he/she remains responsible for. Costs of this nature must be paid for by the respective owner.

Levies can often be seen as a bone of contention for many owners due to annual increases and at times the way it is spent or not spent at all.

It is important to remember that a scheme’s expenses ultimately determine the amount of levies that need to be charged. For this reason, levies of various schemes cannot be compared as each scheme is very unique and its needs, features and facilities, etc. will differ from another.

In essence, the monthly levy contributions that owners make should be seen as an investment into the scheme and it is essential to understand the value and purpose behind it.

In order to achieve this, the scheme’s trustees play a vital role as they are the decision-makers on behalf of all the owners and are responsible for the implementation and expenditure of funds. They should, therefore, fulfil their fiduciary role to the benefit of all owners.