Anyone who owns property within a section title scheme quickly learns that community schemes have management structures such as Bodies Corporate and HOA’s. Often, these bodies employ a managing agent specialist to oversee the intricacies surrounding community schemes properly.

However, while the corporate or board is composed of homeowners and investors, it often becomes unclear what the role of a management agent is. This piece will look at ten key reasons why a managing agent is vital for a flued and effective community scheme and what their role is.

One - Proven financial management and reporting track record

Community Schemes only run well if their finances are in order. This means adequate levy collection and good budgeting to match the homeowner's expectations. Managing agents will work to manage and set these budgets for each new year while determining necessary levies and forecasting expenses.

Two - Levy Collection

As stated above, managing agents are responsible for distributing levies and invoices to owners and handling collection. The agent also ensures that levy schedules agreed upon by AGM schedules are conducted to their specification. Because of this, managing agents are registered with the Council of Debt Collectors and comply with the Debt Collector’s Act.

Three - Managing approved creditor payments

Managing and handling expenses such as security and maintenance, insurance premiums, and municipal accounts. They ensure that all payments are made on time and that all external services provided for the scheme are affected accordingly without disruption.

Four - Compiling year-end financial reports for audits

The audit process that managing agents facilitate allows the AGM of the corporate body to be convened on time and with the necessary information. Usually within four months of the financial year-end.

Five - Compiling annual tax returns

Managing agents work with professional accounting firms to ensure all financial elements are accurately collected and compiled before providing the scheme with monthly reports.

Six - Managing and running meetings

There is quite a bit of admin involved in managing sectional schemes. As such, agents will attend meetings, take notes and minutes, provide supporting documentation for meeting agendas, and ensure that all records are adequately kept.

Seven - Maintaining sectional title scheme upkeep

Regular maintenance and upkeep are vital to an efficient and effective sectional title scheme. The managing agent's job is to ensure that the scheme remains well-presented and that the value of all property within the estate increases in value. This will include facilitating completion inspections, organising maintenance and garden contractors and invoice payments for approved maintenance activities.

Eight - Overseeing regulatory compliance

In particular, compliance with Health and Safety is paramount. This includes regulated inspection of all firefighting equipment, Lift Annexure B inspections every two years, regular inspections of all safety lighting, signage for emergencies and evacuation procedures.

Nine - Staff Payments

Estates are managed by an extensive collection of employees that handle upkeep, garden maintenance, and repairs. From payroll to leave forms and UIF management, agents will ensure all these bases are covered while providing HR support for CCMA hearings.

Ten - Compiling long-term maintenance plans

Ten-year maintenance reports are extensive documents for recording almost all relevant building requirements and repairs and are compiled by the agent. Agents will also ensure that valuation surveys are conducted every three years following stipulations from the Sectional Title Management Act (STSMA).

Our managing agents provide complete transparency to our clients, so they can make informed decisions. This is accomplished by open communication and sharing information with owners and scheme executives.

Are you looking for a new managing agent for your Community Scheme?

For more information and to find an effective managing agent you can trust, contact us below:

Contact Lee Reeves:
Call: +27 87 702 8730
Email: info@hodpm.co.za
Web: www.hodpm.co.za