Edgar Brandt
As the proliferation of apartment and townhouse complexes in Namibia continues unabated due to an ongoing housing crisis, many residents around the country inevitably end up belonging to a body corporate, which in turn appoints a property management company to cater for the maintenance needs of the respective properties. However, the Namibia Estate Agents Board (NEAB) yesterday confirmed that currently no legislation exists to regulate the mushrooming property management companies.
Manager of the NEAB, Festus Unengu, explained to New Era that archaic legislation, the Namibia Estate Agents Act of 1976, still regulates the domestic property market. However, he emphasised that this legislation does not at all regulate property managers, property developers, property auctioneers and certainly not body corporates.
Unengu clarified that through the industrialisation and trade ministry as the custodian of the current Estate Agents Act, the NEAB embarked on the drafting of new legislation about five years ago to include all players in the property industry.
“The new Bill was already submitted to the Cabinet Committee on Legislation, who instructed the NEAB to make changes to the legislative proposal. Now, we intend to resubmit the Bill for approval by May this year,” he stated.
The NEAB manager explained that owners of a townhouse or apartment complex form the body corporate, which in turn appoints trustees to act on behalf of the body corporate, which is a legal entity. The body corporate is then charged with the maintenance and other needs of the said property, for which they may or may not appoint a third party, known as a property management company. Then, the body corporate, through the trustees, enters into a service level agreement with the property management company.
Unengu noted that the trustees may terminate the agreement with the property management company at any stage if the service level agreement between the two is neglected for whatever reason. Also, the body corporate, or owners, may elect new trustees should they not be satisfied with the level of service being provided in terms of maintenance or other needs.
Unengu also requested all stakeholders and property owners to provide input on the new legislation on the Board’s website at www.neab.co.na.
Meanwhile, numerous property owners in Namibia are facing uphill battles with their chosen property management companies, many of whom are slacking on their service level agreements.
“We are all operating in an unfavourable economic climate that so many sectors are feeling the pinch. But the issue concerning the regulation of property management companies really needs attention. For example, the complex I live in is now in a sorry state, and the property management company that manages the place makes every excuse under the sun to avoid incurring any costs. Yet, every month, I religiously pay my levies. I cannot go to a lawyer as that in itself is another expense and they are aware of this loophole, hence they take full advantage of it,” complained a property owner in Windhoek, preferring anonymity.
Some progress is being made in the city regarding individualised municipal bills that can now be paid directly, and no longer have to be done through a property management company.
Last year, the City of Windhoek started producing individualised municipal bills that include rates and taxes charges for owners of accommodation units within a body corporate.
The City said clients should expect such changes to reflect on their bills by the end of June. This relates to the implementation of section 54 of the Sectional Title Act no.9 of 2009.