By Prof Graham Paddock

Prof Graham Paddock
Below is an example of a question on the discussion forum on Paddocks Club. We want to show what is available to our Community Members!


Difference in charges for open and covered parking?

Question:

Paddocks ClubI have a question on parking levies. We have a case where the open area levies are lower than those of the covered area below. When one looks at all the maintenance involved in both areas, the open area carries double the traffic and the upkeep costs more.
The question is: should the levies not be the same or proportional to the cost of the upkeep? Both areas use the same amount of utilities, e.g. lights, cleaning and security.

Graham’s answer:

Remember that the charges raised in regard to EUAs are not “levies”, i.e. contributions based on PQ, but are charges designed to ensure that the BC recovers all its costs in respect of the area in question.
Sometimes these charges are recoverable in terms of the scheme rules, but more normally the trustees include these charges in their income estimates in the budget put to the AGM for approval.
Yes, if there is a significant difference in the BC’s costs associated with one type of bay as compared with another, the BC’s charges should differ accordingly.

Renting part of the common property

Question:

The trustees have decided to rent out, through a short-term lease, part of the common property for use as a parking bay by an owner. Must the area that will be rented be surveyed and, if so, by whom (a land surveyor, an architect)? Must the lease and/or a sectional plan be lodged with the Deeds Office? Please let me know the legal formalities that must be complied with. Is the Body Corporate entitled to make the owner liable for the legal/admin costs associated with creating the bay?

Graham’s answer:

For a short-term lease, very little formality is required and no lodgement of any paperwork with the Deeds Registry.
I suggest a written lease with a scale plan attached. It would make sense to use a copy of the scheme’s block plan to indicate the lease area.
And it would make sense to describe exactly what type(s) of vehicle can be parked in the bay and whether only the tenant can use this or if others, including sub-lessees, can make use of it. Clearly you will not want the tenant to lease the bay to someone who does not already have access to the scheme.

Member:

Thank you for the prompt response and for bringing to my attention some of the details that should be included in the lease.
 
 
Article reference: Paddocks Press: Volume 8, Issue 3, Page 5

 

Adjunct Professor Graham Paddock is available to answer questions on the discussion forum for Community Members of Paddocks Club. Get all your questions answered by joining Paddocks Club at www.PaddocksClub.co.za.


This article is published under the Creative Commons Attribution license