General valuation of properties under way in City of Mbombela

Property valuation:

The Municipal Property Rates Act No.6 of 2004 (herein after referred to as the act) came into effect on July 2, 2005. The act regulates the power of a municipality to value and rate immovable properties within its boundaries and must be implemented by all municipalities in every five-to-seven-year period or valuation cycle. The City of Mbombela intends to implement it on July 1, 2023. The act provides for the revaluation of all properties within the municipal area. Revaluations should happen at least once every four years and the law states that the rates levied must be based on the market value of the property, i.e. the selling price of the property if sold on the date of valuation in the open market by a willing seller to a willing buyer. The date of valuation, as determined by the City of Mbombela’s council, is July 2, 2022.

Property rates:

The new valuation will not necessarily mean that rates will increase, and it does not mean the municipality will be collecting a larger sum of money. The amount each property owner pays is determined by the market value of his/her property in relation to other properties in the municipal area. While there is a possibility of a change in the value of the property, the effect on individual properties will only be known once the entire valuation exercise is complete. The revenue received from property rates benefits all ratepayers, and is used to fund the maintenance of roads, streets, lighting and storm drainage facilities and the building and operation of clinics, parks and cemeteries.

It is essential that communities proactively and constructively engage with the municipality on valuation and rating issues. Previously, sectional title complexes were rated as a whole and the body corporate or managing agent would determine each individual’s contribution. An important provision of the new act is that each individual sectional title unit be separately valued and rated, the rates payable will be based on the market value as the date of valuation.

Frequently asked questions

When exactly will the general valuation of the property start?
The general valuation is already under way with information being collected on properties. The data collection team responsible for the general valuation will be visiting properties for inspection between July and October 2022. It should be noted that not all properties will be physically visited and inspected; where there is sufficient data and information previously collected, it will be used as such.

Who can I expect at my house?
Unless otherwise arranged with the resident, a data collector will visit your home between 07:30 and 19:00 on any day except Sunday or a public holiday. They will be wearing bibs identifying them with the property valuation project, will be in position of an identity card issued by the municipality and will also carry their official South African identity card/document as well as an official letter from the municipality delegating them the authority to collect property data and information. The data collector’s name, project ID and a clear photograph of the person will appear on the ID card. If you are uncertain as to the authenticity of the data collector, you can call the number on the card to verify that they are authorised to visit your home. In most cases, data collectors will be visiting each neighborhood road by road, individually or in pairs, to collect property valuation related information.

What will the data collectors do when they arrive at my house?
The data collector will carry out an external inspection of all buildings on the property and will measure your house and draw a sketch of it, or confirm the details of a sketch they already have. They will collect data and information to help determine the correct value for the property or sectional title unit, which will include:
• The type of building material used in the construction of the house
• The quality and condition of the house
• The location and situation of the house
• The number of rooms, kitchens and bathrooms
• The number and size of other buildings, amenities and facilities, e.g. swimming pools, granny flats, garages, stoops, verandas, patios, etc.
• Are any of the buildings on the property being used for any other purpose other than residential?

All of this information will help determine the correct market value of the house. By allowing the data collectors access to your home, you will assist the municipality in determining a fair and equitable market for your property.

How would I recognise a data collector?
All data collectors will be clearly identifiable as delegated municipal officials of the City of Mbombela’s property valuation project. A telephone number will be published in the data collector’s identity card and you can telephone that number to verify that the data collector is visiting your property to collect data and information for valuation purposes. All data collectors are trained by the general valuation project to collect accurate and complete property valuation data and information in a polite and courteous manner. Do not allow anyone onto your property who claims to be a data collector or valuer, but cannot identify themselves to your complete satisfaction. Please call the number supplied to report any suspicious activity or people posing as data collectors. This is in the interest of your safety and the safety of your neighbours.

What are my responsibilities when a data collector wants access to my house?
Data collectors will request access into your home and other buildings on the property to collect information to assist in the valuation process. If you are not at home when the data collectors visit, they will leave a calling card providing the date and time for the second visit. If this is not suitable, you can contact the data collector to arrange a mutual agreeable date and time. If they are unable to gain access to your home, the value of your property will be based on available information. All information noted down by the data collector is confidential and will be treated as such.

What does this mean for rented properties?
People who rent properties are not usually liable for rates, depending on the terms of the lease, yet they will be affected by the property valuation project as they will have to allow the data collector access to the property on behalf of the owner. Tenants and other occupants have the same obligation as homeowners when it comes to allowing access to properties.

What happens when the market changes?
The act requires that a revaluation of all properties be done at least once every four years in terms of a date of valuation as determined by the municipality. By undertaking these revaluations, property market trends and patterns are accounted for.

My property has not been sold in the past 20 years. How will you value it?
These properties will be compared with similar properties that have been sold in the neighbourhood.

Is there a need to inspect every property?
For the sake of accuracy, it is desirable that every property is inspected.

How will the common property in sectional title schemes be valued?
The common property does not have its own value. In a fair and equitable manner, the value of common property is apportioned to each individual unit.

Data collection

Your safety is of primary concern. The data collectors will be wearing distinctive bibs and will be carrying special identification cards.

For further information, please contact the call centre on 013 759 9220/013 759 9273/013 759 9558/013 759 2365 or email info.valuations@mbombela.gov.za.