FREQUENTLY ASKED QUESTIONS
What properties has Aengus developed?
Aengus’ core focus is urban renewal for both conventional tenancy and student accommodation. We have a purchased a number of commercial buildings in Braamfontein and the Johannesburg inner city, Durban and Port Elizabeth which we have converted from high rise office blocks into residential apartments and upmarket student accommodation.
Who manages these portfolios?
Aengus Property Management (APM) is a wholly owned subsidiary of Aengus Property Holdings. APM is a fidelity fund certified company in the process of receiving its ISO 9001 accreditation. APM is responsible for the full scope of property management services which include leasing, letting, collection of rentals, security, cleaning, maintenance and facilities of all the buildings within the portfolio. It employs a staff of 200 people.
Does Aengus Property Holdings rent or sell the loft apartments within the portfolio?
Historically APH has held all of its buildings as rental stock. However in April 2007, after receiving a vast amount of enquiries from the investor community, ALP opened sectional title registers within four of its previously owned buildings, including Lofts @ 66, Tribeca Lofts, Fashion Lofts and Berea Lofts. Currently all student accommodation is on a rental basis only.
Do your buildings fall within the South African Revenue Services urban development zones?
Yes all of our buildings, except Berea Lofts fall within urban development zones. An investor can enjoy a 30% straight line appreciation of their purchase price over a 5 year period. The onus is on the investor to apply to SARS with the relevant documentation in order to receive the UDZ incentive. Please see below for further information.
What is unique about refurbishing inner city buildings?
These buildings were originally commercial office blocks and not intended for residential use. Some of the many challenges include needing to work with the buildings as they are, designing around elements that would be easier to remove. Unseen deterioration, delivery access, storage facilities, out dated equipment, electrical upgrades, working with existing structural limitations. And of course being able to alter an eyesore to create an attractive feature.
How has the current economic crises affected the rental market?
Aengus Property Management (APM) has seen its most successful letting phase over the last three months with thousands of student leases signed. All of APM’s conventional apartments in downtown Johannesburg and Braamfontein continue to maintain 100% occupancy.
What is Aengus Property Management’s key to 100% rental collection on a monthly basis?
Between APM’s efficient portfolio, building managers and strong management system, we are very thorough when it comes to accepting only credit worthy tenants. We have tight credit control processes and strict policies in place that ensure successful rental collections.
Why invest in Aengus’ inner city developments now?
The current drop in interest rates means that Aengus developments for sale are more attractive than ever. Aengus properties have offered a constantly increase in net returns per yearover the past 5 years of between 5-7%. Investors can also enjoy the benefit of the Urban Development Zone tax incentive.
What is the vision for the Aengus group going forward?
We intend to purchase further property portfolios and redevelop these to bring new rental stock into the traditional housing market. We will also focus on up market affordable student accommodation for intake.
What is the UDZ tax incentive and how can I benefit from it?
The Urban Development Zone (UDZ) tax incentive is aimed at encouraging inner city development across South Africa. Any taxpaying, property owning individual or entity can claim the tax benefits of the UDZ incentive, if they fall within the UDZ boundaries.
The incentive takes the form of a tax allowance that covers an accelerated depreciation of investment made in either the refurbishment of an existing property or the creation of new developments within the inner city. This falls over a period of either five, or seventeen years.
In the past, sectional title units were not entitled to a tax deduction, however due to the increasing demand from both the private sector and municipalities it was decided to amend the act to include such units.
These amendments have been applicable since November 2005 and allow up to 30% of the purchase price as a deduction over a five year period. It is up to the investor to submit the requisite information to SARS at the end of the tax year.
How does the process work?
A developer needs to obtain a certificate from the Johannesburg Council which certifies that the property does in fact fall inside the UDZ boundaries.
On completion of the units, the developer must then obtain a certificate of occupation from the Johannesburg Council. The sectional title owner must then accompany the following document with their next tax return
• Zone certificate
• Occupational certificate
• Deed of sale
• Development agreement
Aengus Lifestyle Properties cannot guarantee or be held responsible for the above information. For further detail on the UDZ please contact your accountant/auditor or local SARS office.
RENTAL PROCESS
1. Viewing of a unit:
Interested tenants are able to meet with an Aengus Property Management representative to view advertised units by calling 27 11 403 0554.
2. Tenant Applications:
Interested tenants are able to obtain application forms online or from the APM representative after unit viewing or from our on-site building managers.
Completed application forms and supporting documentation may then be faxed, emailed or delivered the APM head office.
All applications undergo ITC and TPN credit checks. Unsuccessful applicants will be contacted and advised of their results.
3. Payment:
Successful applicants will be notified and are then required to make the following payments to Aengus Property Management to activate the lease agreement:
- 1 month’s rent in advance
- 1 month’s deposit including administrative fee
- Proof of payment to be faxed to Aengus Property Management on 27 11 403 0595
4. Lease:
Once payments have been made, tenants are required to meet a leasing agent to do the following:
- Sign the lease agreement
- Discuss rental terms and conditions
- Finger printing
5. Final Approval:
Aengus Property Management does the final check and approval of the complete lease agreement and notifies applicants of the results.
6. Signed lease and apartment keys:
Upon final approval, a copy of the lease will be made available to the tenant. Apartment keys and electricity cards will be handed over once a moving-in inspection form has been completed and signed by all parties.
FACILITIES MANAGEMENT PROCESS
APM follows a strict facilities management and maintenance policy.
Repairs and maintenance is actioned through a job card system and facility management reports are done regularly by the relevant Aengus Property Management personnel.
SECURITY MANAGEMENT PROCESS
Aengus Property Management is resolute in not outsourcing the security function of the business. The following controls are in place to combat any problematic behaviour:
- Head Doorman on duty 24/7
- All staff equipped with ADT panic buttons
- A Biometric Finger Printing system ensures building access control
- A state of the art communication system connects with the Aengus frequency installed in the CBD, enabling doormen to communicate over a distance of up to 30 km’s
- The head doorman inspects properties daily and compiles a report which is analysed by head office
- Security checks are done on all posts across the property every 30 minutes via the advanced radio system
Financial Management Process
Aengus Property Management does NOT accept customer payment after the 1st of the month nor does it permit late payment agreements with tenants.
All rentals and levies are paid into a trust account for each specific property. Any expenses related to each respective property, are paid from the same account.
1. Body Corporate Management:
- Collection of Levies:
Before the rental is paid to the owner, a levy and management fee is deducted form the rent to ensure no levies are outstanding. This collection method is employed when an owner lets his apartment for investment purposes. In the case of an owner-occupier, levies needs to be paid directly to the body corporate. Should payments not be made on time, Aengus Property Management attorneys will immediately issue a summons for due amounts.
- Owner Payments:
All body corporate owners will receive their profits on the last working day of every month (rental receipted less collection commission less levy).
- Repairs:
Any maintenance work required is to be authorised by the property owner. Thereafter charges are allocated to, and paid by the owner.
- Meetings:
An initial meeting will be held within 60 days from the body corporate being established. Thereafter special meetings will be held when necessary.
- Trustees:
The number of trustees shall be determined by the members of the body corporate at general meetings, provided that there are not less than two trustees. With effect from the date the body corporate is established, all owners shall be trustees who hold office until the first general meeting, where after they shall retire but be eligible for re-election.
- Income and Expenses:
All building’s expenses are handled by the managing agents. Levies and parking fees are collected on the 1st of every month.
- Insurance:
All buildings are adequately insured and excesses and public liability are examined on a regular basis.
2. Customer Service:
- APM has a dedicated customer service division dealing with complaints and queries. All correspondence is recorded and the progress closely monitored by the customer service administrator. Contact 27 11 403 0554
FREQUENTLY ASKED QUESTIONS
What properties has Aengus developed?
Aengus’ core focus is urban renewal for both conventional tenancy and student accommodation. We have a purchased a number of commercial buildings in Braamfontein and the Johannesburg inner city, Durban and Port Elizabeth which we have converted from high rise office blocks into residential apartments and upmarket student accommodation.
Who manages these portfolios?
Aengus Property Management (APM) is a wholly owned subsidiary of Aengus Property Holdings. APM is a fidelity fund certified company in the process of receiving its ISO 9001 accreditation. APM is responsible for the full scope of property management services which include leasing, letting, collection of rentals, security, cleaning, maintenance and facilities of all the buildings within the portfolio. It employs a staff of 200 people.
Does Aengus Property Holdings rent or sell the loft apartments within the portfolio?
Historically APH has held all of its buildings as rental stock. However in April 2007, after receiving a vast amount of enquiries from the investor community, ALP opened sectional title registers within four of its previously owned buildings, including Lofts @ 66, Tribeca Lofts, Fashion Lofts and Berea Lofts. Currently all student accommodation is on a rental basis only.
Do your buildings fall within the South African Revenue Services urban development zones?
Yes all of our buildings, except Berea Lofts fall within urban development zones. An investor can enjoy a 30% straight line appreciation of their purchase price over a 5 year period. The onus is on the investor to apply to SARS with the relevant documentation in order to receive the UDZ incentive. Please see below for further information.
What is unique about refurbishing inner city buildings?
These buildings were originally commercial office blocks and not intended for residential use. Some of the many challenges include needing to work with the buildings as they are, designing around elements that would be easier to remove. Unseen deterioration, delivery access, storage facilities, out dated equipment, electrical upgrades, working with existing structural limitations. And of course being able to alter an eyesore to create an attractive feature.
How has the current economic crises affected the rental market?
Aengus Property Management (APM) has seen its most successful letting phase over the last three months with thousands of student leases signed. All of APM’s conventional apartments in downtown Johannesburg and Braamfontein continue to maintain 100% occupancy.
What is Aengus Property Management’s key to 100% rental collection on a monthly basis?
Between APM’s efficient portfolio, building managers and strong management system, we are very thorough when it comes to accepting only credit worthy tenants. We have tight credit control processes and strict policies in place that ensure successful rental collections.
Why invest in Aengus’ inner city developments now?
The current drop in interest rates means that Aengus developments for sale are more attractive than ever. Aengus properties have offered a constantly increase in net returns per yearover the past 5 years of between 5-7%. Investors can also enjoy the benefit of the Urban Development Zone tax incentive.
What is the vision for the Aengus group going forward?
We intend to purchase further property portfolios and redevelop these to bring new rental stock into the traditional housing market. We will also focus on up market affordable student accommodation for intake.
What is the UDZ tax incentive and how can I benefit from it?
The Urban Development Zone (UDZ) tax incentive is aimed at encouraging inner city development across South Africa. Any taxpaying, property owning individual or entity can claim the tax benefits of the UDZ incentive, if they fall within the UDZ boundaries.
The incentive takes the form of a tax allowance that covers an accelerated depreciation of investment made in either the refurbishment of an existing property or the creation of new developments within the inner city. This falls over a period of either five, or seventeen years.
In the past, sectional title units were not entitled to a tax deduction, however due to the increasing demand from both the private sector and municipalities it was decided to amend the act to include such units.
These amendments have been applicable since November 2005 and allow up to 30% of the purchase price as a deduction over a five year period. It is up to the investor to submit the requisite information to SARS at the end of the tax year.
How does the process work?
A developer needs to obtain a certificate from the Johannesburg Council which certifies that the property does in fact fall inside the UDZ boundaries.
On completion of the units, the developer must then obtain a certificate of occupation from the Johannesburg Council. The sectional title owner must then accompany the following document with their next tax return
• Zone certificate
• Occupational certificate
• Deed of sale
• Development agreement
Aengus Lifestyle Properties cannot guarantee or be held responsible for the above information. For further detail on the UDZ please contact your accountant/auditor or local SARS office.
RENTAL PROCESS
1. Viewing of a unit:
Interested tenants are able to meet with an Aengus Property Management representative to view advertised units by calling 27 11 403 0554.
2. Tenant Applications:
Interested tenants are able to obtain application forms online or from the APM representative after unit viewing or from our on-site building managers.
Completed application forms and supporting documentation may then be faxed, emailed or delivered the APM head office.
All applications undergo ITC and TPN credit checks. Unsuccessful applicants will be contacted and advised of their results.
3. Payment:
Successful applicants will be notified and are then required to make the following payments to Aengus Property Management to activate the lease agreement:
- 1 month’s rent in advance
- 1 month’s deposit including administrative fee
- Proof of payment to be faxed to Aengus Property Management on 27 11 403 0595
4. Lease:
Once payments have been made, tenants are required to meet a leasing agent to do the following:
- Sign the lease agreement
- Discuss rental terms and conditions
- Finger printing
5. Final Approval:
Aengus Property Management does the final check and approval of the complete lease agreement and notifies applicants of the results.
6. Signed lease and apartment keys:
Upon final approval, a copy of the lease will be made available to the tenant. Apartment keys and electricity cards will be handed over once a moving-in inspection form has been completed and signed by all parties.
FACILITIES MANAGEMENT PROCESS
APM follows a strict facilities management and maintenance policy.
Repairs and maintenance is actioned through a job card system and facility management reports are done regularly by the relevant Aengus Property Management personnel.
SECURITY MANAGEMENT PROCESS
Aengus Property Management is resolute in not outsourcing the security function of the business. The following controls are in place to combat any problematic behaviour:
- Head Doorman on duty 24/7
- All staff equipped with ADT panic buttons
- A Biometric Finger Printing system ensures building access control
- A state of the art communication system connects with the Aengus frequency installed in the CBD, enabling doormen to communicate over a distance of up to 30 km’s
- The head doorman inspects properties daily and compiles a report which is analysed by head office
- Security checks are done on all posts across the property every 30 minutes via the advanced radio system
Financial Management Process
Aengus Property Management does NOT accept customer payment after the 1st of the month nor does it permit late payment agreements with tenants.
All rentals and levies are paid into a trust account for each specific property. Any expenses related to each respective property, are paid from the same account.
1. Body Corporate Management:
- Collection of Levies:
Before the rental is paid to the owner, a levy and management fee is deducted form the rent to ensure no levies are outstanding. This collection method is employed when an owner lets his apartment for investment purposes. In the case of an owner-occupier, levies needs to be paid directly to the body corporate. Should payments not be made on time, Aengus Property Management attorneys will immediately issue a summons for due amounts.
- Owner Payments:
All body corporate owners will receive their profits on the last working day of every month (rental receipted less collection commission less levy).
- Repairs:
Any maintenance work required is to be authorised by the property owner. Thereafter charges are allocated to, and paid by the owner.
- Meetings:
An initial meeting will be held within 60 days from the body corporate being established. Thereafter special meetings will be held when necessary.
- Trustees:
The number of trustees shall be determined by the members of the body corporate at general meetings, provided that there are not less than two trustees. With effect from the date the body corporate is established, all owners shall be trustees who hold office until the first general meeting, where after they shall retire but be eligible for re-election.
- Income and Expenses:
All building’s expenses are handled by the managing agents. Levies and parking fees are collected on the 1st of every month.
- Insurance:
All buildings are adequately insured and excesses and public liability are examined on a regular basis.
2. Customer Service:
- APM has a dedicated customer service division dealing with complaints and queries. All correspondence is recorded and the progress closely monitored by the customer service administrator. Contact 27 11 403 0554