Great expectations of a managing agent

20 August 2021 | Lamees Finch

Managing agents are often mistaken as the authoritative body responsible for all things related to the decisions made within and about a community scheme. It is a common misconception that breeds misunderstanding and animosity not only between managing agents scheme executives and/or scheme executives and owners, but most often, owners and managing agents.

Managing agents are the conduit between the owners within a scheme and the scheme executives elected to manage the scheme. Generally, owners of a scheme only come to understand the role managing agents play when they attend an annual general meeting. You often hear phrases similar to, “I sent it to the managing agent, and they would not give me approval for keeping a pet” or “The managing agent said I can’t enclose my balcony”. Once the managing agent’s role is explained, the misguided owner often takes a different approach.

The term “managing agent” is used as it is the entity that oversees the day-to-day business of the scheme, and the managing agent is referred to by name, “Joe Soap Pty (Ltd) is the managing agent and is responsible for XYZ”. However, behind the name of the managing agent is a body of individuals who carry out the duties and functions as outlined in the respective management agreements. Those individuals, whose names should be learnt, go a long way to assist the scheme executives to manage the scheme effectively. Those individuals guide the scheme executives in terms of the Sectional Title Schemes Management Act 8 of 2011 and its Regulations in the case of a sectional title scheme, or a homeowners association’s governance documents, and the Community Schemes Ombud Service Act 9 of 2011 which is applicable to all community schemes. In addition to aiding and guiding, those individuals commonly known as property managers or portfolio managers, also have to wear other hats designated for other professionals. The following are but a few:

• mediator,

• psychologist,

• electrical and plumbing professional,

• Constitutional Rights protector, and

• sometimes, in the rare case, personal assistant to a chairperson/trustee who oversteps the bounds.

Trustees and even owners, should take the time to understand the role of their managing agent, and more specifically, the role of the property/portfolio manager designated to their scheme. Having this understanding will go a long way in knowing who is responsible for the different aspects of managing a scheme, and will undoubtedly circumvent many frustrations for the managing agent, the scheme executives and the owners.

Some scheme executives or owners reading this, may be thinking that it’s easier said than done! Trust and believe, that the writer is well versed in wearing three hats as a previous property manager, and current owner and trustee in a scheme. The understanding established in all three roles would serve anyone well, and most are not as fortunate, or afflicted, depending on your view, but it has helped to be able to have the patience, the understanding and to do my own leg work before seeking guidance from my managing agent. It also goes a long way to assisting the managing agent to carry out their duties effectively when they are dealing with a knowledgeable and helpful trustee, as opposed to a know-it-all.

Managing a scheme is no easy undertaking when you are wearing any kind of hat. What helps, is when all the hats are thrown in together for the common benefit of all associated with the scheme.

Should you have any questions on the above please contact us on info@tvdmconsultants.com or 061 536 3138.