The role and duties of a managing agent
Category Newsletter: Article
The role and duties of a managing agent
The rise in sectional title property has brought about a more complex type of property with many shared aspects compared to full title property where there is usually just a single property owner.
In the case of sectional title, you are part of a scheme that jointly owns the land and are responsible for shared facilities and the maintenance, many of which is regulated. The costs of basic services such as water, sewerage and refuse also needs to be managed.
Where a building manager once sufficed, managing a sectional title scheme is today a job best handled by a skilled managing agent such as Coastal Property Management Services who will take care of essential aspects including the general administration, finance and property management for the scheme.
In this role, Coastal Property Management Services then also act as liaison between the trustees and residents, often vital should a situation of conflict arise. That means that issues can be dealt with professionally and with as little upheaval as possible. Rules and regulations that guide conduct and various other aspects are also attended to and enforced by the managing agents.
The administrative duties would include arranging the annual general meeting, recording of the minutes of the meeting, following up on any action required, keeping of records for the scheme, managing the building insurance cover and assisting property owners when needed.
The financial duties include collecting the monthly levies, managing the body corporate’s bank accounts, paying of expenses such as the monthly property taxes and utilities such as water and electricity and providing monthly financial statements and reports.
Management of the property itself includes managing the maintenance requirements including ensuring the legislated reserve fund is maintained, and appointing and managing essential on-site staff such as caretakers, supervisors and gardeners.
A new service offering includes selling and renting of properties within the scheme. Given that managing agents such as Coastal Property Management Services are also fully accredited estate agents, they are in fact best placed to offer these services.
All managing agents must be registered with the Estate Agents Affairs Board (EAAB) and hold a valid Fidelity Fund Certificate at all times. It must also be a member of the National Association of Managing Agents (NAMA) and hold appropriate indemnity insurance to cover any potential misappropriation of client funds.
Given the scope, risks and complexity, Coastal Property Management Services recommends that the trustees of a sectional title scheme take great care when appointing a managing agent. Be sure to research and interview service providers with a proven track record.
Author: Coastal Property Group
