Property glossary
Managing agent
Also known as: scheme managing agent, property managing agent
A professional firm appointed to administer a community scheme or rental portfolio, handling finances, levies, maintenance and compliance.
Definition
A managing agent is a person or firm appointed under a written contract to administer the affairs of a community scheme or a rental property portfolio. For schemes, the managing agent collects levies, keeps the books and trust account, pays suppliers, arranges maintenance and supports the trustees, while the trustees retain decision-making authority. The agent acts under a mandate and must account fully to the body corporate or landlord.
In the South African context
Managing agents who handle scheme or rental money are property practitioners under the Property Practitioners Act 22 of 2019 and must hold a valid Fidelity Fund Certificate and operate a trust account audited annually. Under the Sectional Titles Schemes Management Act (STSMA, Act 8 of 2011) a body corporate may delegate functions to a managing agent by written contract, but the trustees remain responsible for the scheme. Trust money must be kept separate from the agent's own funds, and mishandling can lead to loss of the certificate.
Example
A body corporate appoints a managing agent on a R85 per-unit-per-month fee; the agent runs the levy roll, banks levies into the scheme's trust account, settles the municipal and insurance accounts, and presents monthly financials to the trustees.
Why it matters
The managing agent controls the scheme's cash flow and records, so its Fidelity Fund Certificate, trust-accounting compliance and clear mandate directly protect owners' money and the scheme's solvency.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- Property Practitioners Act — Act 22 of 2019 — managing agents handling trust money require a Fidelity Fund Certificate and audited trust account
- STSMA — Sectional Titles Schemes Management Act 8 of 2011 — body corporate may delegate functions to a managing agent by written contract