Intersect has been in business since 1971 and has overcome the economic hardships and survived several recessions in that time. This latest adversity, being the outbreak of COVID-19, and the devastating effects it has, and continues to have, on our economy, is no different, and we are pleased to report that we are likely to see this one through as well.
In fact, this last month of working from home, and even more remotely assisting our clients, has been quite a positive experience, in that it has highlighted the back-end functions that we provide to our clients, which is really the backbone of the services we provide.
Many of our clients have, as have we, refocused attention on the financial and administrative duties involved in managing community schemes, and this is really where our strength lies.
We are proud to report that our clients were, by and large, unscathed by the lockdown, so far, and this is largely due to the processes and policies we have adopted over the years now bearing fruit.
Sure we are finding the physical property management, specifically repairs and maintenance, challenging, but our Trustees have really stepped up to the plate, and for this we are, as should every owner in every scheme be, truly grateful. In doing so, Trustees (and hopefully owners too) have renewed appreciation for the amount of work that goes into managing property.
At Intersect, this past month allowed for introspection, to getting back to the basics. Our primary role, as property managers in the community schemes arena, is to provide the Trustees with support on financial and administrative fronts. Guiding Trustees to ensure that sound fiscal policies are adopted, reserves are built, levies and contributions collected, and creditors managed, is all part of what we do, and we do this well.
Long before the new Acts kicked in, we advocated long-term budgeting and the building of reserves, which, apart from softening the blow in 2016 when the new provisions were applied, is now bearing fruit.
We have tight fiscal policies in terms of how we deal with our clients funds, requiring, inter alia, Trustees to approve all invoices and requiring creditors to jump through certain hoops in order to get paid, and these are sound principles, that protect both us as company, and our clients alike.
We also spend an inordinate amount of time, guiding our Trustees to ensuring that one of their most fundamental tasks, being insurance, is properly undertaken. We use the strength and size of our book (in excess of R11bn under cover) to ensure that our clients get the best possible cover, for the best possible premium and that all the requirements of the various acts are adequately applied. We can also, based on the size of our book, negotiate best practice service level agreements with affiliates, such as insurance brokers, leading to the expeditious, fair and reasonable satisfaction of claims.
A business’s mettle is tested in times of adversity - we haven’t experienced adversity like this in our company’s lifetime - and we are happy to report that we have come out on top. This is reassurance for our clients - to know that their assets are in good hands and that fiduciary responsibilities are being met.
We take great pride when properties are listed for sale in our portfolio with one of the selling points being “a property within a well-managed scheme, with a strong balance sheet and pleasant living environment”. Ultimately, this is what we are all striving for.
For the next while, and as long as we face lockdown at higher levels, our physical offices will remain closed until further notice or until restrictions are lifted accordingly, however, its business as usual in terms of collections, payments, issuing of management reports and responding to our clients.
We wish all of South Africa all the very best for the duration of the lockdown and subsequent phased-in economic restructuring.