Sectional title corner – your burning questions answered
We have decided to save money and not use a managing agent anymore. We have a number of retired people who can do the books. – Pam
Very few owners and a lot of trustees do not fully understand the role of a managing agent. We do not just “do the books”.
While sending out levy statements and collecting the levies are a big function of managing agents, that is not all we do.
For your interest, a managing agent must be registered at the Estate Agency Affairs Board (EAAB) and have a Fidelity Fund Certificate and must be a registered Debt Collector with the Debt Collectors Council. It is important to make sure your managing agent is registered with both. The best managing agents are also members of the National Association of Managing Agents (NAMA) and adhere to their Code of Conduct.
The successful management of a scheme takes up a lot of time and requires extensive knowledge of the Sectional Titles Act and rules that governs the scheme. Most trustees do not have this knowledge.
The late Bob Gauld – the doyen of the local sectional title industry – made the comparison to say that a sectional title portfolio manager with two years’ experience and who manages 30 schemes has probably attended 60 AGMs, over 300 trustee meetings; taken over 6,000 telephonic queries and answered thousands of emails. (I think nowadays portfolio managers actually answer hundreds of thousands of emails over a period of two years)
A trustee in a self-managed scheme will have to serve for 60 years (according to Bob) to gain the same experience.
Got a burning question? Email firstname.lastname@example.org and we’ll be sure to assist you.
Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.