Body Corporate Budget Calculator
Build the annual levy budget for your sectional title scheme — itemised costs, CSOS levy, and reserve fund analysis for trustees and managing agents
| Budget Line | Annual | Monthly | % Budget |
|---|---|---|---|
| Security services | R 43 200 | R 3 600 | 11.1% |
| Cleaning (common areas) | R 108 000 | R 9 000 | 27.7% |
| Gardening / landscaping | R 30 000 | R 2 500 | 7.7% |
| Pest control | R 3 600 | R 300 | 0.9% |
| Water & electricity (common areas) | R 14 400 | R 1 200 | 3.7% |
| Building insurance | R 8 000 | R 667 | 2.1% |
| Managing agent fees | R 120 960 | R 10 080 | 31.0% |
| General maintenance & repairs | R 28 878 | R 2 407 | 7.4% |
| Reserve fund contribution (STSMA min 10%) | R 32 816 | R 2 735 | 8.4% |
| TOTAL | R 389 854 | R 32 488 | 100% |
Understanding the Body Corporate Budget
Under the Sectional Titles Schemes Management Act (STSMA) No. 8 of 2011, the body corporate must prepare an annual budget covering all operational costs and a minimum 10% reserve fund contribution. The budget is approved at the Annual General Meeting (AGM) and determines each owner's monthly levy.
For a scheme with total PQ of 1 000, the monthly levy rate is R 32.49 per PQ unit. An owner with PQ 100 would pay R 3 249/month. The CSOS (Community Schemes Ombud Service) levy is separate and must be collected by the body corporate.
Note: insurance is compulsory under STSMA Section 3(1)(h). The policy must cover the buildings for reinstatement value, not market value.
Setting the Body Corporate Annual Budget How to use • Legal requirements • Example
How to Use This Calculator
This tool is designed for body corporate trustees and managing agents preparing the annual budget for a sectional title scheme. Enter the number of units, total PQ, building age, floors, and tick which amenities the scheme has. The calculator produces an itemised annual budget and suggests the required reserve fund contribution.
This is different from the Sectional Title Levy Calculator, which tells an individual owner what levy to expect. This tool helps trustees set the total budget and levy rate.
STSMA Legal Requirements
The Sectional Titles Schemes Management Act (STSMA) No. 8 of 2011 (and its Regulations) governs body corporate financial management. Key requirements:
- The body corporate must operate an administrative (operational) fund and a reserve fund — two separate accounts
- The reserve fund must receive a minimum contribution of 10% of the administrative fund budget each year
- A 10-year maintenance plan must be prepared, maintained, and reviewed every 3 years
- Building insurance for reinstatement value is compulsory (STSMA Section 3(1)(h))
- The annual budget and levy must be approved at the AGM (Annual General Meeting)
- Levy arrears can be recovered as a debt and the body corporate can approach the CSOS or a court
Worked Example
Trustee Thabo manages a 30-unit complex in Midrand, built in 2008 (17 years old), 4 floors, with security, garden, and a pool — no lift. The building's reinstatement value is R9,000,000.
Using this calculator, the estimated annual budget is approximately R720,000–R850,000, depending on contracted rates. This gives a monthly levy of about R2,000–R2,360 per unit (for equal-levy schemes), plus the CSOS levy of approximately R20/unit/month.
The reserve fund should target R1,350,000 (15% of R9M reinstatement value). If the current reserve is only R200,000, a 5-year catch-up plan would require an additional ~R230,000/year shared across all units — approximately R638/unit/month extra.
Frequently Asked Questions
What is the difference between the admin fund and the reserve fund?
The administrative fund (also called the operational fund) covers day-to-day running expenses: security, cleaning, gardening, insurance premiums, managing agent fees, and routine maintenance. The reserve fund is a long-term savings account for future capital expenditure — roof replacement, lift refurbishment, repaving of parking areas, and other major repairs. The STSMA requires these to be held in separate bank accounts and prohibits using reserve fund money for operational costs without special resolution approval.
How is the CSOS levy calculated and who pays it?
The Community Schemes Ombud Service (CSOS) levy is a statutory levy collected by the body corporate from each owner and remitted to the CSOS. The amount depends on the monthly levy: units paying up to R500/month owe no CSOS levy; above that, the CSOS levy is R10–R120/unit/month on a sliding scale. The CSOS provides dispute resolution services and oversight of community schemes. Failure to collect and remit the CSOS levy is a compliance violation.
Can a body corporate raise a special levy?
Yes. A body corporate may raise a special levy (also called a special assessment) by a special resolution (75% of owners by value and number) for unanticipated capital expenditure not covered by the budget or reserve fund — for example, emergency roof repair after a storm. Special levies are typically a once-off additional amount payable by each owner in proportion to their PQ. Owners cannot refuse to pay approved special levies; the debt is recoverable through the courts or CSOS.
What happens if an owner doesn't pay their levy?
Unpaid levies accrue interest at the prime rate plus 2% (or as stipulated in the scheme's rules). The body corporate can issue a demand letter, refer the matter to the CSOS for adjudication, or institute legal proceedings in the Magistrate's Court or High Court. Persistent non-payment can ultimately result in attachment of the unit. Unlike bond payments, there is no "option" not to pay levies — they are a statutory obligation that attaches to ownership of the sectional title unit.
How often should the body corporate budget be reviewed?
The annual budget must be approved at each Annual General Meeting, which must be held within 4 months of the body corporate's financial year end. Given South Africa's inflation rate (currently 3–5%), trustees should budget for at least a CPI-plus-1% increase in operational costs each year, with additional escalations for energy costs (Eskom tariff increases of 10–15% per year are typical). The 10-year maintenance plan must be reviewed every 3 years.