As transport costs rise, and travel time spent in traffic increases, many people are preferring the option for them to work from home rather than travel to an office. However, if you are living in a community scheme there may be certain procedures that need to be followed, and permissions sought, depending on the type of work performed, local municipal by- laws and the rules of the scheme.
During the past two years of the Covid-19 Disaster Regulations, many small business owners were forced to terminate their leases in commercial shopping centres and offices, but to continue to earn income they set up a home business at their place of residence. In addition, where companies have accessible online cloud-based IT systems, these companies have in the past couple of years, allowed their staff where possible, to work remotely and this will most likely continue for the foreseeable future. With this ease of access and the improved availability of remote internet connectivity, setting up a home office is a great option. This does, however, create challenges for both sectional title residential community schemes and homeowner associations.
Most community schemes are established and designed for residential purposes, and while the properties may be able to accommodate a small work-from-home type business, the elected scheme executives need to ensure that they have in place the correct scheme rules, if it is decided to allow certain home enterprises to operate from a property. As part of these rules there should be a formal application approval process to be made to the scheme executives that ensure that any home- based business complies with the scheme’s rules and the municipal by-laws.
Rules put in place should ensure that the operations of any business that complies have a minimal impact of the lives of other residents. The matter of residents causing nuisance in schemes is an ongoing issue especially in terms of parking, noise, dust, and unpleasant odours. In the case of some sectional title schemes, unmonitored water consumption could also increase and there may be an increased risk to security. Increased insurance risk is also a factor that should be considered, and scheme executives should check with their broker as too what information an insurer requires so as not to put their insurance cover at risk.
Small business owners should do their due diligence in terms of understanding the legislation and rules that govern the scheme where they reside, especially how the municipal by-law may regulate their business operations prior to setting up any business enterprise in their home. In terms of municipal zoning by-laws that are certain business types that are specifically prohibited from operating in residential areas. The Sectional Titles Schemes Management Act requires that the written consent of all owners be obtained before an area that designated for a specific purpose on the sectional plans be used for another purpose.
Member approved rules of the estate that allow for home businesses or home offices to be set up by residents, must also be aligned with the municipal by-laws where the scheme is established, and should stipulate that no business activities can take place without the written approval of the scheme executives of the scheme together with the approval of the Municipal Town Planning Department. The rules must also cover the consequences for non- compliance by the owner with the rules and allow for the right of the scheme executives to remove permission where persistent breaches of the rules by the member continue, despite warnings being given.
Whitfields will provide support in whatever way it can, in assisting scheme executives and residents residing in the community schemes that we manage, along this road of compliance with legislation governing peaceful dispute resolution in the community schemes we manage.
