With the steep rises in municipal tariffs this year, water usage has become a hot topic in Sectional Title (ST) complexes, where the benefits of individual water meters – and especially pre-paid meters – are increasingly being recognised.
However, trustees need to know about the different procedures they need to follow if they decide to install normal meters or pre-paid water meters.
The top five advantages of individual metering:
- Fair billing
Separate meters enable the consumption of water by each unit in the complex to be accurately recorded, in the same way that individual electricity meters do. This ensures that residents pay only for what they consume themselves, rather than a share of the overall cost of water for the complex. It also creates transparency in billing and prevents many misunderstandings and disputes between residents and the body corporate (and between landlords and tenants) over water charges.
2. Water conservation
When residents can see what their own water consumption is, and what it costs, it generally encourages more mindful usage and the adoption of water-saving measures that lead to reduced overall consumption in the complex. This supports sustainability and eco-living goals and can enhance the complex’s reputation as a responsible community.
3. Leak detection
Separate meters can also aid in the early detection of any water leaks in individual units. This reduces water wastage and prevents long-term damage that can result from undetected leaks in a shared system.
4. Better budgeting
Separate meters also enable ST trustees and managing agents to better predict and manage the annual water expenses of the complex, which will now be incurred only for usage on the common property. They won’t need to worry about getting enormous municipal water bills due to excessive water usage by one or more residents and be able to plan better for maintenance and upgrades.”
5. Lower levies
Residents of ST complexes where all units have separate water and electricity meters should enjoy lower levies – or at least smaller levy increases, as the body’s corporate budget will only need to cover the usage of these utilities on common property.
6. Increased property value
Prospective buyers and tenants are increasingly seeking out ST properties with separate meters (especially pre-paid meters) these days, because they want to be able to monitor their own water and electricity usage. This makes units in complexes with separate metering much more marketable.
Consequently, it is advised that trustees consider installing water meters without delay.
Should the trustees wish to switch to separate municipal meters, they will only need an ordinary resolution of members to request the installation of these meters to measure the supply of water to individual sections, exclusive use areas and the common property.
“This is provided for in Prescribed Management Rule 29 of the Sectional Title Schemes Management Act (STSMA) and simply requires a written request from each registered owner in the complex to proceed.”
To get pre-paid water meters installed, though, the trustees will need to secure a special resolution, by giving all owners in the complex at least 60 days’ notice of their intention and a detailed breakdown of the costs associated with the proposal over the next three years.
Section 1 of the STSMA provides that this will then need to be agreed to, in writing, by owners holding at least 75%, by value and number, of all votes in the scheme. Alternatively, the special resolution will need to be approved by the same percentage of owners at a special general meeting, held after 30 days’ notice.
Article courtesy of property24