How to Choose a Good Managing Agent? – Helpful Tips
At the very core of it, sectional title schemes are best described as separate ownership of a unit which is situated in a group-owned complex or development. Breaking it down further, this means that every sectional title scheme comprises of three elements, first the owners’ sections, the exclusive use areas and common areas.
For most of us, when applying for a bond based on a sectional property, the bank will not only consider your personal financial health, but also that of the sectional title scheme’s body corporate. For this reason it’s imperative that the managing agents chosen by the scheme, have a sound track record, where their integrity, loyalty and dedication have been proven.
Managing agents represent the interest of sectional title schemes; the trustees and the owners, so the right candidates are imperative, as the smooth functioning of admin, finance and property management falls on them.
Choosing and trusting the correct managing agent is vital to the ‘well-being’ of the sectional title scheme and should not be done haphazardly. Often trustees base their decision of choosing a managing agent on price alone, but considering the financial implications in the long-run, should anything go wrong, this is an ill-advised method of going about selecting a managing agent. The ‘word of mouth’ method is good to consider but always remember to do your research well.
We suggest the following key factors for consideration:
- Ensure that your managing agents is a registered agent, with proof available. The managing agent should be in possession of a valid and current, Property Practitioners Regulatory Authority Fidelity Fund Certificate.
- Research the managing agents work, with solid track records, backed by testimonials from other trustees from other sectional title schemes.
- The managing agent should have professional indemnity and fidelity insurance.
- Choose managing agents that can prove that they are able to multitask well and make your sectional title scheme a priority within reasonable time.
- Choose managing agents that show passion toward sectional title schemes and a clear love for the industry. Visit their existing sties and see how they interact with their staff.
- Be very clear about what you want the managing agent to do in your contract, the contract must state how often you will meet and the costs involved.
It can be said that the managing agency industry has become quite competitive with the passing of time. It is a competitive industry but the best managing agents will always try to provide you with the required information and will be able to communicate their limitations as well. There is certainly a good managing agent out there for you.