The South African Property Owners Association (Sapoa) announced recently that it had reappointed specialist consultant Rates Watch to monitor rates policies for the next five years, owing to the negative impacts of rising municipal rates and taxes on operating costs, gross rentals and property management resources.
Rates Watch’s mandate from Sapoa will continue to be a focus on unearthing municipal budget information on key property- related costs, such as rates and taxes, electricity or water, in South Africa’s 11 largest municipalities – Cape Town, in the Western Cape; Nelson Mandela Bay and Buffalo City, both in the Eastern Cape; Mangaung, in the Free State; eThekwini and Msunduzi, in KwaZulu-Natal; Ekurhuleni, Johannesburg and Tshwane, in Gauteng; Polokwane, in Limpopo; and Mbombela, in Mpumalanga.
The consultancy will be responsible for identifying, analysing and collecting information pertaining to relevant municipal policies and legislation, as well as the medium-term revenue and expenditure frameworks at the selected municipalities.
Sapoa represents companies and organisations in the commercial property sector. Sapoa CEO Neil Gopal points out: “Members contribute significantly to the rates base, and we believe it to be in our interest [and that of] municipalities . . . to partner on this matter. As a sector, commercial and industrial property [companies] want to contribute in a positive way towards the efficient functioning of municipalities.”
Sapoa has been vocal in challenging the legality of increased municipal rates charged to members. “Our primary goal is to alert our property owner and investor members to changes in property-related municipal costs that could impact on them,” concludes Gopal.