M.Tech. Business Administration. Business School.

One of the major sources of income to South African Municipalities is property rates. Income generated from property rates is meant to develop and deliver services to residents living in the said Municipal area. The main aim of the research was to identify the causes and effects of the non-payment of residential property rates, and also to develop workable strategies to maximise the collection of residential property rates in order to ensure developmental growth sustenance, specifically in Mahikeng Municipal area. Related literature was reviewed on the non-financial viability of Municipalities, maintenance of public infrastructure, service delivery and Municipal development plans in establishing the relationship with non-payment of residential property rates. Four hypotheses were set to guide the research with two testing positive with high level of confidence using the chi square method of testing. The research methodology employed in the research was mainly quantitative where the results and findings obtained from the questionnaire were statistically analysed. The research revealed that: The Mahikeng Local Municipality has failed to find the right medium to send rates bills to clients on time, is not taking active responsibility to recover rates debts, does not provide quality service delivery and the reluctance by locals to pay their property rates. The effects thereof, are the inability of the Municipality to deliver effective and efficient services, lack of maintenance of public infrastructure and development in the area. By implementing various options such as email, sms and the post to send rates bills to property owners, by employing different payment options, for example debit orders, transfers, bank deposits and discounts for property owners and embarking on periodic public awareness campaigns in educating the community regarding the importance of payment of property rates could serve as effective mechanisms to address the non-payment of residential property rates faced by the Mahikeng Local Municipality.