Choosing the Right Managing Agent for your Scheme
Category Community Schemes
With so many recent changes in legislation it is imperative that Trustees do their research and ensure that a good Managing Agent is appointed to assist the Trustees in the running of their scheme.
Choosing the right managing agent is vital to ensure the success of the Scheme in terms of their financial stability and to ensure that they remain compliant in terms of the legislation related to Sectional title and Homeowners Associations.
Appointing a good managing agent will give the Trustees peace mind and to ensure that the right agent is appointed following the list below will assist the Trustees in making an informed decision.
- Ensure that your managing agents is a registered with the relevant Authorities with proof available. The managing agent should be in possession of a valid and current, Property Practitioners Regulatory Authority Fidelity Fund Certificate. Although it is not a requirement for every staff member in the company to be registered with the PPRA, the principal agent however must have an FFC. This is crucial due to the large sums of money that is managed in the form of levies and where money is deposited into a trust account in accordance with the name of the relevant scheme.
- Any good Managing agent will also be a member of the National Association of Managing Agents and be registered with the National Debt Collectors Association
- Choose a managing agent with a good reputation in the industry who has a solid track record, backed by testimonials from Trustees in other sectional title schemes that they manage.
- Ensure that the managing agent has professional indemnity and fidelity insurance.
- Choose managing agents with experienced and educated staff who can multitask well and ensure that your sectional title scheme is a priority. Ensure that they have a sound knowledge of the Sectional Titles Management Schemes Act to assist the trustees and guide the Body Corporate in making informed decisions by ensuring compliance with the Act and the registered rules of the scheme.
- Ensure that your managing agent has a good accounting team to manage your finances who can meet all the requirements of financial management of the Body Corporate in terms of Budget preparation and keeping proper financial accounting records.
- Ensure that they can assist the Body Corporate with maintenance and insurance related issues.
- Ensure that your contract with the managing agent reflects the full list of services available to your Body Corporate as well as the costs involved.
By Making the right decision and in having a good working relationship with your Managing Agent you will ensure that your scheme continues to flourish which in turn will increase the value of your investment and provide peace of mind for the future.
Author: Maxprop