Managing Agents
Many developers and management companies employ professional firms known as managing agents to provide maintenance and other services in housing developments.
The managing agent and the management company are two very different entities. The managing agent works under the instructions of the management company. Before you buy, you should find out if the developer and/or management company has appointed a managing agent.
Typical services
Managing agents’ services typically include:
- Inspecting and maintaining common areas
- Organising refuse collections
- Collecting service charges from owners
- Administrative duties such as arranging insurance cover
- Organising meetings between the management company, owners and residents
- Providing information and advice and responding to enquiries from owners
Appointing a managing agent
Developers generally appoint a management company and the managing agent at the outset of a development, often before the first unit is sold.
The developer should:
- Inform buyers that a managing agent has been appointed
- Outline the services to be provided
- Explain the managing agent’s procedures for dealing with requests/complaints from owners
Managing agents should only be employed on the basis of a written contract with the management company, which clearly sets out both parties’ obligations and responsibilities.
A binding written contract is the legal basis for resolving any disputes that may arise between an agent and your management company. As part of the contract, the agent should agree to meet at least quarterly with the management company or residents’ committee.
The developer should also provide the management company and the agent with:
- The title documents and counter part leases
- An agreed snag list and practical completion certification
- As-built drawings
- A register of all capital assets
- Warranties and other guarantees, including test records for drainage, water and heating pipe work
- Certifications for fire safety, health and safety, planning and building regulations
Who pays
Owners pay the costs of employing the managing agent as a part of their annual service charge contribution to the management company.
The cost of the agent will depend on the firm, but largely depends on the range and quality of services provided.
How to complain
The contract between the agent and the management company should specify the procedure for dealing with owners’ complaints.
If you are dissatisfied with the managing agent’s performance, you should raise the issue with your management company rather than the agent.
Withholding your service charge as a protest is not advised – this is a breach of your contractual obligation under the terms of your lease.
Regulation
No specific qualifications or licences are required to operate as a managing agent. This will probably change once the Property Services Regulatory Authority (PSRA) is established on a statutory basis.
The PSRA will license and regulate managing agent services. It will also regulate other property service providers such as auctioneers and estate agents.
The PSRA is expected to have legislative power to investigate individual complaints against managing agents.
Learn more
Find out what should be in the managing agent’s contract
Read a checklist for choosing a managing agent
Download a sample covering letter inviting tenders for managing agent services
Find out more about the Property Services Regulatory Authority
How well are you doing?
Answer this simple question to see how well you understand this section.
Question: Generally speaking, who pays the costs of employing the managing agent in a multi-unit property development 10 years after it has been built?
Answer A: The owners, through their service charge contribution to the management company
Answer B: The developers
Answer C: The local authority