Managing risks in community schemes: How STS can help

Community schemes, such as complexes, estates and homeowners’ associations (HOAs), offer residents the benefits of shared resources, enhanced security, and well-maintained common areas. However, they also come with unique risks that, if not properly managed, can lead to financial strain, legal disputes, and operational disruptions.

From infrastructure failures to financial mismanagement, community schemes must proactively address potential risks to ensure long-term sustainability. Fortunately, STS offers a suite of solutions designed to help mitigate these risks and maintain thriving, well-managed communities.

Aging infrastructure, delayed maintenance, and lack of funding for essential repairs can severely impact the safety and value of a community scheme. Cracked walls, leaking roofs, failing elevators, and deteriorating plumbing systems can lead to costly emergency repairs and even legal liabilities.

Prevention:

• Implement a proactive maintenance plan with regular inspections.
• Establish a reserve fund to cover large-scale repairs and replacements.
• Leverage STS’s funding solutions to access capital for urgent or unplanned maintenance and infrastructure upgrades without placing undue financial burden on residents.

Water shortages, inefficient water management, and infrastructure failures can lead to high utility bills and operational disruptions. South Africa’s ongoing water challenges make this a critical risk for community schemes.

Prevention:

• Install water-saving devices such as low-flow taps and dual-flush toilets.
• Implement greywater recycling and rainwater harvesting solutions.
• Utilise STS’s water solution, which offers bulk water supply and management solutions, ensuring cost-effective and sustainable water usage.

With load shedding back in action and rising electricity costs, an unreliable power supply can disrupt daily life and lead to security concerns in community schemes.

Prevention:

• Invest in solar energy and battery backup systems to reduce dependence on the grid.
• Use energy-efficient lighting and appliances to minimise consumption.
• STS’s solar and energy solutions can help community schemes transition to sustainable energy sources, reducing costs and improving energy security.

Break-ins, vandalism, and safety concerns can threaten the well-being of residents and reduce property values. Effective security measures are essential for protecting community schemes.

Prevention:

• Install access control systems, CCTV cameras, and electric fencing.
• Engage security personnel or implement neighbourhood watch programmes.
• Leverage STS’s smart security technology, which provides advanced access control and monitoring solutions tailored to community schemes.

Poor financial planning, mismanagement of levies, and arrear levies can destabilise a community scheme, making it difficult to cover essential expenses.

Prevention:

• Ensure transparent financial management with regular audits and reporting.
• Set up efficient levy collection processes to address arrears.
• Contact the pros. STS offers funding and treasury solutions, including arrear levy funding and debt collection support, helping community schemes maintain financial stability.

Community schemes are subject to strict legal and regulatory requirements. Failure to comply with sectional title laws and municipal by-laws can result in fines, disputes, and reputational damage.

Prevention:

• Stay informed on legislative changes and compliance requirements.
• Engage legal professionals to review governance documents and dispute resolutions.
• Consult STS, as we provide legal advisory services, ensuring community schemes remain compliant with regulations and can effectively handle legal challenges.

Poor waste management can lead to environmental hazards, increased costs, and dissatisfaction among residents.

Prevention:

• Implement recycling programmes and encourage responsible waste disposal.
• Remind community members to take pride in their homes and environment by disposing of waste properly.
• Work with municipal services or private waste management companies to ensure timely collection.

Inadequate insurance coverage can leave a community scheme vulnerable to financial loss from disasters such as fires, floods, or structural damage.

Prevention:

• Ensure comprehensive insurance coverage tailored to the needs of the scheme.
• Regularly review policies to keep them aligned with changing risks.
• Read up on insurance-related matters from our team of legal experts.

Community schemes face a wide range of risks, but with proactive planning and the right solutions, these challenges can be effectively managed. STS offers a comprehensive suite of services designed to help community schemes navigate financial, legal, infrastructure, and operational risks. By partnering with STS, communities can ensure their schemes remain financially secure, legally compliant, and well-maintained for years to come.

If you’re looking to enhance the resilience of your community scheme, contact STS today to explore how our solutions can support your needs.