When is the right time to change Managing Agents?

When is the right time to change Managing Agents?

One of the most common problems in Sectional Title developments today is that Owners are saddled with Managing Agents who are either unwilling or unable to service the needs of the Body Corporate.

In practice, this creates much uncertainty in the building and can give a building a reputation for being mismanaged or have inadequate finances.

Trustees and Owners are often hesitant to change Managing Agents for various reasons. This can cause a variety of problems to the other Owners within the complex.

Should Owners be experiencing problems with their current Managing Agents, the Managing Agents should be informed of the problems experienced and be given the opportunity to improve in the specified areas, if they are unable or unwilling, it is in the interests of all other Owners that the management contract be reassigned to another firm.

It is important that prospective Managing Agents be informed of the problems that were previously experienced to ensure that the new firm can improve in these areas.

Always ensure new prospective Managing Agents are in possession of a valid Fidelity Fund Certificate and registered with the Estate Agency Affairs Board and are full member’s professional organizations such as NAMA (National Association of Managing Agents).

Always remember that Managing Agents are responsible for a large extent of the finances, maintenance and reputation of the building and having the right Managing Agent will go a long way to ensuring your long term investments don’t fall into a black-hole of depreciation.