MAIN IMAGE: Tobie van der Merwe, business development manager; Danie van der Merwe, director; and Maritza Botha, product manager at WeconnectU
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Being a trustee of a community scheme may feel like a thankless task – all work, no play, and very little gratitude. The irony is: the quality and dedication of a community scheme’s leadership – its body corporate, trustees and managing agents – is often the single biggest contributor to its success or failure.
If taking responsibility for the protection of the value of their entire community’s property assets wasn’t enough, trustees are often interested to learn that community schemes are also a significant economic contributor. Estimated to comprise 27% (R800 billion) of the total value of residential property in South Africa, the health of organised communities is critical for the country as a whole.
That’s a lot of responsibility to place on trustees’ shoulders – and it’s not even the full responsibility picture. Recent legislation has also heaped significant personal risk on trustees’ already crowded plates, holding them personally liable for their own and their community’s adherence to regulations, with penalties for failure that include hefty fines and even jailtime.
Managing Agents: a port in the storm
With so much at stake, a managing agent can be an invaluable port in the storm for trustees. To successfully minimise risk and maximise ROI in today’s complex regulatory environment, however, these agents need to be far more than the simple administrators of the past.
In fact, the role of today’s managing agents is far more closely aligned with that of a corporate managing director. Think:
- Overseeing budgets and finances
- Managing various projects
- Acting as primary contact and relationship manager for all stakeholders
- Reporting to key stakeholders
- Running and overseeing crucial meetings where strategic decisions are made
Instead of safeguarding the value of a business, however, managing agents are safeguarding their community’s most valuable assets – their homes.
Unlike most managing directors, they’re also responsible for far more than just a single entity, often handling 20 to 30 communities housing up to 250 residents, each. That’s a significant workload under the easiest of circumstances. And today’s community management landscape is far from easy.
How to recognise a good Managing Agent
So, how do trustees go about finding a managing agent up to the challenge? One they can really trust to preserve their community’s lifestyle and benefits, maximise their (and other owners’) ROI, and reduce their legal and financial risk.
Here’s a hint: it’s less about what those agents do as it is how they do it. We always suggest trustees look for the following attributes in their managing agents.
1. They embrace today’s leading technology
Community management today is a far cry from community management in the past. Any managing agent still trying to do it all using Excel, Outlook and their mobile phone is going to be at a serious – and potentially dangerous – disadvantage. It’s just too easy for critical tasks to fall through the cracks between these old-school tools, not only exposing trustees to significant risk, but also preventing communities from reaching their full potential.
Instead, trustees should look for a managing agent who embraces technology to streamline and consolidate critical workflows, support and track compliance, channel effective communications, optimise financials and facilitate efficient and effective meetings.
2. They support full transparency
When it comes to risk, it’s nice to trust but better to verify. A good managing agent should offer full transparency into their operations, enabling trustees to verify critical areas like compliance, firsthand, and in real time.
3. They provide a seamless, value-adding professional service
A seamless, streamlined and consistent management experience is a good sign that a managing agent has the fundamentals of their role under control. This is important, as it enables them to spend less time on administrative basics, and more time putting their professional skills to work protecting and enhancing the community – that’s value trustees can take to the bank.
4. They know their own value
A good managing agent is fully aware of the challenges imposed by today’s regulations, the weight of risk shouldered by trustees, and the skill (and workload) involved in keeping communities both compliant and thriving.
They also understand the importance and value of their ability to create a preferred community that delivers consistent ROI at minimal risk, and they are able to clearly communicate that value when negotiating their professional fees.
Will trustees pay more for a good managing agent? Almost certainly. But the value they receive in return should far outweigh that financial outlay.
The real question is: who would trustees rather trust to protect themselves and their communities? A focussed professional with the ability to manage the community both compliantly and strategically, or an overworked administrator with no time to go beyond the bare basics…?
WeconnectU is dedicated to providing managing agents with the consolidated technology they need to overcome the increasing complexities of today’s community management landscape, and deliver more valued – and valuable – professional services.
Visit https://www.weconnectu.co.za/ to find out more about how our solutions are reshaping the property management industry, today.
