Services to the Property Management industry

PPE Valuations specialises in supplying valuation solutions to the Property Management Industry for all property types. Valuation services most requested are for replacement valuations for insurance purposes and market valuations for municipal tax purposes. Other valuation projects include, but are not limited to, the valuation of available vacant land for further development and the valuation of a servitude in cases of road widening

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   Replacement valuations for insurance purposes:
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  • Bodies corporate of sectional title schemes are by law (Prescribed Management Rule (“PMR”) 23(3) Annexure 1 of the Regulations to the Sectional Title Schemes Management Act No. 8 of 2011) required to obtain a replacement valuation of all insured buildings and improvements at least every three years, and present such replacement valuation to the annual general meeting in order to ensure that the common property and sections are correctly insured. In order to be useful and easily understood by both property managers and owners our reports reflect the following:
  1. The replacement cost of each unit is clearly and simply set out; 
  2. The replacement cost of common area improvements are clearly and simply set out; 
  3. Each owner’s section value as well as the unit value (i.e. including the owner’s share in the common property) is clearly shown in a column format;
  4. A column is included for additions or additional values that an owner may wish to add;
  5. The cost of demolition, professional fees, cost inflation over the insurance period and VAT at the current rate.
          (For an example of a replacement cost report, fill in your details below and you will be re-directed to the relevant
​          page.)
  • The owners of freehold properties are also advised by their insurance brokers to obtain the opinion of an independent professional as to the replacement value of their buildings from time to time in order to avoid “average” in cases where the replacement value as indicated in the policy becomes outdated.
  • Replacement values used in our reports are based on publications from reputable quantity surveyors, i.e. The yearly published AECOM African Construction Cost Report, as well as inputs from local builders, suppliers and quantity surveyors.
 

    Market valuations for municipal tax purposes:
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  • Municipalities make use of CAMA (computer aided mass appraisal) systems when compiling a new general valuation roll. These systems many times do not take factors such as location and views within sectional title schemes into consideration and therefore tend to over-value units.
  • Commercial and industrial buildings are also many times over-valued as municipalities tend to value whole areas by applying the same income and expense rates to all properties in a certain area.
  • For a more in depth discussion of the municipal valuation process visit our Municipal Valuations page.

These valuation services can be supplied on an ad hoc basis or a Management Company can appoint PPE Valuations on a service level agreement (SLA) to manage the valuations for all the properties in their portfolio AT A GREATLY REDUCED RATE.

A service level agreement (SLA) will have the following benefits:

   For insurance valuations:​
  • An average reduction of up to 25% in fees as opposed to ad hoc valuations;
  • A yearly updated replacement cost report at no cost within a three year cycle (if there were no additions or alterations to the scheme or buildings)
  • A very low fee for updates to reports within the three year cycle should there be any additions or alterations to a scheme or building.

   Market valuations for municipal tax purposes:
  • If your portfolio include non-sectionalised properties then an average reduction of up to 25% in fees as opposed to ad hoc valuations;
  • For sectional title schemes a preliminary market valuation is done of every unit in the scheme at a greatly reduced fee as opposed to individual owners having to pay a full fee for an individualised valuation. Objections to individual units which are deemed to be over-valued are then submitted to the municipality. The cost for completing and submitting objection documentation will be for the account of the respective owners.

  Total cost to the building / unit owner:
  • The valuation fees can be included in the management company’s fee and spread over a 3 year cycle (36 months).

  Reporting
  • ​The management company will receive a monthly report on the valuation activities for the month ahead as well as feedback on the previous month for each property included under the SLA.
+27 82 440 2740
... consequences of under-insurance are far reaching and can end up costing a property owner...  More
...long term relationships with clients in order to supply valuation services at a reduced average rate.  More
... after obtaining a Master of Science degree (MSc) in Property Studies from the University of Cape Town...  More