Roles and Responsibilities: Managing Agents vs Boards of Trustees
Category Advice
As a property owner within a Sectional Title Scheme or Homeowners' Association, it is important to be aware of the various governing bodies that are involved in the ongoing management of your building, complex, or residential area.
Understanding the distinct function of both Managing Agents and Boards of Trustees (or Directors) can be very helpful, as their roles have a direct impact on the process of managing your investment.
Roles and Responsibilities of a Managing Agent Versus a Board of Trustees
Managing Agents
Administrative Management:
Managing Agents are responsible for the day-to-day administration of the property scheme. This includes everything from record-keeping and correspondence, to communication with property owners and residents.
Financial Management:
Managing Agents typically handle the financial affairs of the property scheme.These responsibilities include collecting levies and other fees, paying invoices, and preparing financial statements.
Maintenance and Repairs:
Managing Agents will coordinate and manage the maintenance and repairs of the common property and facilities within the property scheme. From obtaining quotes and scheduling maintenance tasks to ensuring health and safety compliance, they will oversee all day-to-day maintenance.
Meetings and Reporting:
Managing Agents also assist in convening and organising Body Corporate or Homeowners' Association meetings. They will draft agendas, take minutes, and prepare financial reports for these meetings.
Rule Enforcement:
Managing Agents may be involved in enforcing certain rules and by-laws of the scheme. This includes dealing with rule violations, issuing warnings, and liaising with legal professionals if necessary.
Insurance Management:
Managing Agents also help ensure that the property concerned is adequately insured. They process insurance claims in the event of damage or loss to common property.
Communication:
Managing Agents act as a point of contact between the property owners and the Board of Trustees or Directors, relaying information and concerns between the two parties.
Board of Trustees (Directors)
Governance and Decision-Making:
The Board of Trustees/Directors is responsible for the overall governance and decision-making within the scheme. They make strategic decisions, set policies, and approve budgets.
Financial Oversight:
The Board oversees the financial health of the scheme. They review and approve budgets, financial statements, and levy structures.
Rule and By-law Creation and Enforcement:
The Board holds the authority to create, amend, and enforce the rules and by-laws of the property scheme. This includes how violations are addressed and penalties are implemented.
Contract Management:
The Board may enter into contracts on behalf of the scheme for certain outsourced services such as security, property maintenance, and landscaping.
Meeting Leadership:
Trustees/Directors lead and participate in Body Corporate or Homeowners' Association meetings. They will typically set the agenda and make decisions on key matters.
Legal and Compliance Issues:
They ensure that the property scheme complies with all relevant property laws and regulations. If legal issues arise, they are within their right to consult legal counsel and make decisions on how to proceed.
Communication:
Lastly, the Board communicates with owners and residents concerning important decisions and information. They may work closely with the Managing Agent in this regard.
The specific roles and responsibilities of Managing Agents and Boards of Trustees/Directors can vary depending on the specific governing documents of the scheme and any contracts in place with the Managing Agent. We hope this article has been helpful in clarifying these specific roles and responsibilities.
Looking for a Managing Agent? Contact us!
When it comes to managing property, there is so much that could go wrong without the right people in your corner. As your Managing Agent, let us take care of the day-to-day responsibilities while you handle all other aspects of your role within your HOA or Body Corporate. Get in touch with us today.
Author: SAProperty.com
