A managing agent should take care of the daily work, while trustees remain in control of the scheme.
If you are a trustee, this may sound familiar. Your body corporate has appointed a managing agent, but trustees are still following up with contractors, searching for documents, answering routine owner queries and checking whether decisions from the last meeting were ever carried out.
At some point, it becomes reasonable to ask: what is the managing agent actually responsible for, and what should still sit with the trustees?
The answer depends partly on the management agreement, but the basic principle is simple. Appointing an ordinary managing agent does not transfer control of the body corporate. Trustees continue to exercise its functions and powers, subject to the legislation, the scheme’s rules and decisions taken by the owners.
This article focuses on sectional-title bodies corporate. HOA directors and committee members should refer to their association’s memorandum of incorporation, constitution, rules, resolutions and management agreement, which may allocate authority differently.
The managing agent is appointed to provide agreed financial, administrative and management services under the trustees’ supervision. In practice, trustees should make the important decisions. The managing agent should make sure they have the right information, then carry those decisions through.
What should trustees remain focused on?
1. Setting the priorities
Trustees need to decide what matters most for the scheme. This could include addressing urgent maintenance, improving levy collections, preparing for major repairs or dealing with repeated breaches of the rules.
Trustees should not have to investigate every issue themselves. A capable managing agent should gather the facts, explain the available options and help the trustees understand the likely costs and consequences. Trustees can then make an informed decision instead of trying to manage the entire process from beginning to end.
2. Making decisions within their authority
A managing agent cannot make every decision on behalf of the body corporate. Trustees must approve matters that fall within their authority. Some decisions may also need to be referred to the owners at a general meeting or approved by a particular type of resolution.
Good management includes knowing where that line sits. Trustee decisions should also be clear and properly recorded. A vague discussion in an email chain can easily lead to confusion. A recorded resolution should confirm what was approved, who must act and whether there are any limits on cost or timing.
3. Understanding the scheme’s finances
Trustees are not expected to become accountants, but they do need to understand the financial health of the scheme. At a practical level, they should know:
- Whether actual spending is in line with the approved budget.
- Whether levies are being collected successfully.
- How much is outstanding and what is being done about it.
- Whether the scheme has enough cash for upcoming commitments.
- Whether planned maintenance is properly funded.
- Why any large or unusual expenses have occurred.
Sending trustees a bundle of financial reports is not the same as giving them useful financial information. A good managing agent should highlight what needs attention, explain unusual movements and help trustees see potential problems early. Trustees can only make sound decisions when the information in front of them is clear.
4. Making sure decisions are fair
Trustees must act honestly, in good faith and in the interests of the body corporate. That means applying the rules consistently, considering complaints fairly and managing any conflict between a trustee’s personal interests and those of the scheme.
The managing agent can guide the process, prepare correspondence and maintain the necessary records. Trustees must still consider important matters objectively and make the final decision where their authority is required.
5. Checking that the managing agent is delivering
Supervising a managing agent does not mean trustees must be copied into every email. It means trustees should have enough visibility to know:
- What has been completed.
- What remains outstanding.
- What is causing a delay.
- Who is responsible for the next step.
- Which matters need a trustee decision.
- Whether any deadlines or risks are approaching.
The management agreement should clearly set out the services being provided. If responsibilities are unclear, important tasks can easily fall between the managing agent and the trustees.
What should no longer be taking up the trustees’ time?
Where these functions are included in the agreed mandate, trustees should ordinarily be able to rely on the managing agent to coordinate the daily administration, including:
- Administering levies, payments and arrears.
- Maintaining the body corporate’s records.
- Coordinating maintenance requests and contractors.
- Obtaining quotations and presenting them for consideration.
- Preparing meeting notices, agendas, resolutions and minutes.
- Communicating with owners and service providers.
- Tracking decisions and outstanding actions.
- Bringing risks and approaching deadlines to the trustees’ attention.
Trustees may still need to approve the work, but they should not have to repeatedly ask whether a contractor was contacted or what happened after an instruction was given. Following up should be part of the service, not an additional trustee responsibility.
Is the relationship working as it should?
A few simple questions can reveal a great deal:
- Can trustees quickly understand the scheme’s financial position?
- Do they know which matters need their approval?
- Are decisions recorded and followed through?
- Are maintenance matters actively managed?
- Are problems raised before they become emergencies?
- Can trustees find important records when they need them?
- Are trustees guiding the scheme, or are they chasing its administration?
If the answer to several of these questions is no, greater trustee involvement may not be the solution. The scheme may need a clearer and more accountable management structure.
Trustees should provide oversight, not carry the entire operation
Serving as a trustee already comes with real responsibility. It should not also require becoming the scheme’s unpaid administrator, accountant and maintenance coordinator.
The right managing agent helps trustees stay informed and in control without placing every daily task on their desks. Information is clear, decisions are recorded and agreed actions remain visible until they are completed. That is what good property management should feel like.
PropAI’s service model is designed to keep trustee decisions, management actions and scheme records connected. The exact responsibilities are confirmed in the management mandate and proposal.