Published: 23 Sep 2026
Ask many Sectional Title owners what a Property Management company does, and the answer will often be something along the lines of: “They collect the levies, send out the statements and pay the bills.”
And while these are certainly important functions, they are only part of the picture.
Successful Property Management of a Sectional Title scheme requires considerably more than processing levy payments. It involves financial management, administration, statutory compliance, governance support, record keeping, insurance, maintenance coordination, debt collection, communication and much more.
A professional Property Management company provides the systems, knowledge, experience and administrative support that assist Trustees in managing these responsibilities effectively.
And while these are certainly important functions, they are only part of the picture.
Successful Property Management of a Sectional Title scheme requires considerably more than processing levy payments. It involves financial management, administration, statutory compliance, governance support, record keeping, insurance, maintenance coordination, debt collection, communication and much more.
A professional Property Management company provides the systems, knowledge, experience and administrative support that assist Trustees in managing these responsibilities effectively.
Property Management Requires Knowledge and Experience
Managing a Sectional Title scheme is a specialised function. It requires an understanding of the legislation and rules governing Sectional Title schemes, together with practical experience in dealing with the many issues that arise in the day-to-day management of a scheme.
A professional portfolio manager may deal with numerous schemes, attend Annual General Meetings and Trustee meetings, assist with Special General Meetings and resolutions, respond to thousands of owner enquiries and deal with a wide variety of financial, administrative and governance matters.
That breadth of experience can be valuable. A Trustee serving on one scheme may encounter a particular issue only once during their term of office, while a professional managing agent dealing with multiple schemes is likely to encounter similar issues repeatedly and can draw on that accumulated experience when assisting Trustees.
This does not mean that a self-managed scheme cannot be well managed. There are many schemes that are successfully managed by their Trustees. Equally, appointing a Property Management company does not, by itself, guarantee that a scheme will be well managed.
The value of professional Property Management lies in the knowledge, systems, experience and administrative infrastructure that a professional management company can bring to the scheme.
A professional portfolio manager may deal with numerous schemes, attend Annual General Meetings and Trustee meetings, assist with Special General Meetings and resolutions, respond to thousands of owner enquiries and deal with a wide variety of financial, administrative and governance matters.
That breadth of experience can be valuable. A Trustee serving on one scheme may encounter a particular issue only once during their term of office, while a professional managing agent dealing with multiple schemes is likely to encounter similar issues repeatedly and can draw on that accumulated experience when assisting Trustees.
This does not mean that a self-managed scheme cannot be well managed. There are many schemes that are successfully managed by their Trustees. Equally, appointing a Property Management company does not, by itself, guarantee that a scheme will be well managed.
The value of professional Property Management lies in the knowledge, systems, experience and administrative infrastructure that a professional management company can bring to the scheme.
How Is a Property Management Company Appointed?
The Trustees may appoint a managing agent to assist with the administration and management of the scheme. The owners, acting at a general meeting, may also direct the Trustees to appoint a managing agent.
Before making an appointment, Trustees should consider the managing agent's experience, knowledge of Sectional Title legislation and scheme rules, administrative and financial systems, and the services that will be provided. References should be checked and the proposed management agreement carefully reviewed.
The services to be provided are governed by the written management agreement, which sets out the scope of the managing agent's appointment and the responsibilities of the parties.
Before making an appointment, Trustees should consider the managing agent's experience, knowledge of Sectional Title legislation and scheme rules, administrative and financial systems, and the services that will be provided. References should be checked and the proposed management agreement carefully reviewed.
The services to be provided are governed by the written management agreement, which sets out the scope of the managing agent's appointment and the responsibilities of the parties.
Managing the Scheme's Finances
Financial management is one of the most important functions of Property Management, and it involves far more than issuing levy statements.
A managing agent may assist with preparing the annual administrative and reserve fund budgets, advising on appropriate reserve fund contributions and assisting Trustees with the development of the scheme's long-term maintenance plan.
The managing agent may also maintain the scheme's financial records and provide Trustees with regular financial information, including income statements, balance sheets, cash-flow comparisons, cash availability reports, arrears reports, debtor age analyses, levy rolls and supporting schedules.
Depending on the management agreement, the Property Management company may also administer the scheme's banking and investments, process payments on behalf of the Body Corporate and arrange the annual audit.
Accurate and timely financial information enables Trustees to make informed decisions about the financial position and future needs of the scheme.
A managing agent may assist with preparing the annual administrative and reserve fund budgets, advising on appropriate reserve fund contributions and assisting Trustees with the development of the scheme's long-term maintenance plan.
The managing agent may also maintain the scheme's financial records and provide Trustees with regular financial information, including income statements, balance sheets, cash-flow comparisons, cash availability reports, arrears reports, debtor age analyses, levy rolls and supporting schedules.
Depending on the management agreement, the Property Management company may also administer the scheme's banking and investments, process payments on behalf of the Body Corporate and arrange the annual audit.
Accurate and timely financial information enables Trustees to make informed decisions about the financial position and future needs of the scheme.
Collecting Levies and Managing Arrears
Levy collection is one of the more visible aspects of Property Management, but it is only one part of a much broader function.
Levies fund the operation and maintenance of the Body Corporate. When owners fall into arrears, the financial impact can extend beyond the individual owner's account and affect the Body Corporate's ability to meet its financial obligations.
A managing agent may therefore be responsible for monitoring arrears, sending reminders and demands, following the agreed collection process and, where necessary, referring matters for legal recovery.
Where debt collection forms part of the managing agent's appointment, the applicable legal and regulatory requirements must also be observed.
Effective arrears management is therefore not simply about sending a demand for payment. It is about maintaining a consistent process that protects the financial interests of the Body Corporate.
Levies fund the operation and maintenance of the Body Corporate. When owners fall into arrears, the financial impact can extend beyond the individual owner's account and affect the Body Corporate's ability to meet its financial obligations.
A managing agent may therefore be responsible for monitoring arrears, sending reminders and demands, following the agreed collection process and, where necessary, referring matters for legal recovery.
Where debt collection forms part of the managing agent's appointment, the applicable legal and regulatory requirements must also be observed.
Effective arrears management is therefore not simply about sending a demand for payment. It is about maintaining a consistent process that protects the financial interests of the Body Corporate.
Administration, Compliance and Governance Support
There is a substantial amount of administration behind every well-run Sectional Title scheme.
A Property Management company may attend to notices and circulars, correspondence, owner queries and complaints, maintain Body Corporate records and registers, and assist with the administration of meetings.
Depending on the scope of the appointment, the managing agent may also assist with statutory administration, including matters involving CSOS, SARS and other statutory obligations.
Property Management also involves supporting Trustees with the procedural aspects of running the scheme. This may include advising on meetings, quorums, proxies, voting rights, resolutions, amendments to the rules and the application of the relevant legislation and scheme rules.
A professional managing agent should therefore understand that Property Management is not simply an accounting function. It requires an understanding of how the scheme is governed and how its financial, administrative and operational requirements fit together.
A Property Management company may attend to notices and circulars, correspondence, owner queries and complaints, maintain Body Corporate records and registers, and assist with the administration of meetings.
Depending on the scope of the appointment, the managing agent may also assist with statutory administration, including matters involving CSOS, SARS and other statutory obligations.
Property Management also involves supporting Trustees with the procedural aspects of running the scheme. This may include advising on meetings, quorums, proxies, voting rights, resolutions, amendments to the rules and the application of the relevant legislation and scheme rules.
A professional managing agent should therefore understand that Property Management is not simply an accounting function. It requires an understanding of how the scheme is governed and how its financial, administrative and operational requirements fit together.
Meetings and Records
Meetings are an important part of the governance of a Sectional Title scheme, and there is significant administration involved in ensuring that meetings are properly organised.
Depending on the management agreement, the managing agent may attend the Annual General Meeting and certain Trustee or Special General Meetings, assist with agendas, notices, proxies and nominations, and prepare minutes of meetings attended.
The managing agent may also maintain minute books, attendance registers and other Body Corporate records and registers.
This administrative support allows Trustees to focus on the matters requiring their attention rather than having to manage every administrative detail themselves.
Depending on the management agreement, the managing agent may attend the Annual General Meeting and certain Trustee or Special General Meetings, assist with agendas, notices, proxies and nominations, and prepare minutes of meetings attended.
The managing agent may also maintain minute books, attendance registers and other Body Corporate records and registers.
This administrative support allows Trustees to focus on the matters requiring their attention rather than having to manage every administrative detail themselves.
Insurance, Maintenance and Contractors
Insurance is another important aspect of Property Management.
Depending on the appointment, a managing agent may arrange insurance for the buildings and improvements, assist Trustees in determining appropriate replacement values, submit insurance claims and liaise with the appointed insurance broker.
A managing agent may also assist the Body Corporate with arranging common-property repairs and maintenance and obtaining quotations from contractors and service providers.
The extent of the managing agent's involvement will depend on the management agreement. Property Management does not necessarily include supervising contractors, inspecting work or attending site inspections. Those responsibilities may remain with the Trustees, caretaker or another competent person appointed by the Body Corporate.
Understanding this distinction is important. A managing agent may coordinate and administer a maintenance process without being responsible for the physical supervision of the work.
Depending on the appointment, a managing agent may arrange insurance for the buildings and improvements, assist Trustees in determining appropriate replacement values, submit insurance claims and liaise with the appointed insurance broker.
A managing agent may also assist the Body Corporate with arranging common-property repairs and maintenance and obtaining quotations from contractors and service providers.
The extent of the managing agent's involvement will depend on the management agreement. Property Management does not necessarily include supervising contractors, inspecting work or attending site inspections. Those responsibilities may remain with the Trustees, caretaker or another competent person appointed by the Body Corporate.
Understanding this distinction is important. A managing agent may coordinate and administer a maintenance process without being responsible for the physical supervision of the work.
Employee Administration
Some Sectional Title schemes employ caretakers, cleaners, maintenance staff or other employees.
Where this forms part of the management appointment, a Property Management company may administer matters such as salaries, PAYE, UIF and Workmen's Compensation and may, where requested, employ staff on behalf of the Body Corporate.
The administration of employees should not, however, be confused with their day-to-day supervision and control, which may remain with the Trustees and/or caretaker.
Where this forms part of the management appointment, a Property Management company may administer matters such as salaries, PAYE, UIF and Workmen's Compensation and may, where requested, employ staff on behalf of the Body Corporate.
The administration of employees should not, however, be confused with their day-to-day supervision and control, which may remain with the Trustees and/or caretaker.
Assisting with the Enforcement of Scheme Rules
The enforcement of scheme rules is another area in which a professional Property Management company can provide valuable support to Trustees.
Managing agents can assist and advise Trustees on the interpretation and application of the scheme's rules and the legislative framework governing Sectional Title schemes. This may include advising Trustees on the appropriate process to follow when dealing with alleged rule contraventions and, where relevant, taking into account applicable CSOS directives and requirements relating to compliance and enforcement.
The managing agent may assist with communicating with owners, issuing correspondence, maintaining records of contraventions and attending meetings relating to rule enforcement.
Where a matter proceeds to CSOS, the managing agent can also assist Trustees with the administrative and procedural aspects of the process and advise them on the applicable requirements.
The managing agent's role is to provide professional advice and administrative support. The Trustees remain responsible for deciding whether and how the Body Corporate should exercise its powers.
Effective rule enforcement is therefore not simply about sending a letter to an owner who is alleged to have breached a rule. The process should be approached consistently, fairly and in accordance with the applicable legislation, the scheme's rules and the relevant regulatory framework.
Managing agents can assist and advise Trustees on the interpretation and application of the scheme's rules and the legislative framework governing Sectional Title schemes. This may include advising Trustees on the appropriate process to follow when dealing with alleged rule contraventions and, where relevant, taking into account applicable CSOS directives and requirements relating to compliance and enforcement.
The managing agent may assist with communicating with owners, issuing correspondence, maintaining records of contraventions and attending meetings relating to rule enforcement.
Where a matter proceeds to CSOS, the managing agent can also assist Trustees with the administrative and procedural aspects of the process and advise them on the applicable requirements.
The managing agent's role is to provide professional advice and administrative support. The Trustees remain responsible for deciding whether and how the Body Corporate should exercise its powers.
Effective rule enforcement is therefore not simply about sending a letter to an owner who is alleged to have breached a rule. The process should be approached consistently, fairly and in accordance with the applicable legislation, the scheme's rules and the relevant regulatory framework.
The Management Agreement Matters
There is no universal list of services that every Property Management company provides.
The management agreement sets out the services the managing agent has been appointed to provide, together with any limitations, exclusions or additional services that may apply.
This is particularly important when an owner asks: “Why isn't the managing agent doing this?”
The better question is: “Does the management agreement require the managing agent to do this?”
Understanding the management agreement helps Trustees and owners understand where the managing agent's responsibilities begin and end.
The management agreement sets out the services the managing agent has been appointed to provide, together with any limitations, exclusions or additional services that may apply.
This is particularly important when an owner asks: “Why isn't the managing agent doing this?”
The better question is: “Does the management agreement require the managing agent to do this?”
Understanding the management agreement helps Trustees and owners understand where the managing agent's responsibilities begin and end.
Property Management Is About More Than Levy Collection
Much of what a Property Management company does happens behind the scenes.
Owners see the levy statement, the notice for the AGM or perhaps the contractor arriving to attend to a maintenance issue. What they may not see is the financial reporting behind the levy, the arrears monitoring, statutory administration, meeting preparation, record keeping, insurance administration, contractor coordination and ongoing communication required to keep the scheme's affairs moving.
A good Property Management company is therefore not simply an administrator sitting behind a levy account.
It provides the knowledge, systems, experience and professional support required to keep the financial and administrative affairs of the scheme organised and functioning effectively.
Ultimately, good Property Management is about helping create a well-administered Sectional Title scheme in which the various parties understand their responsibilities and work together effectively.
Owners see the levy statement, the notice for the AGM or perhaps the contractor arriving to attend to a maintenance issue. What they may not see is the financial reporting behind the levy, the arrears monitoring, statutory administration, meeting preparation, record keeping, insurance administration, contractor coordination and ongoing communication required to keep the scheme's affairs moving.
A good Property Management company is therefore not simply an administrator sitting behind a levy account.
It provides the knowledge, systems, experience and professional support required to keep the financial and administrative affairs of the scheme organised and functioning effectively.
Ultimately, good Property Management is about helping create a well-administered Sectional Title scheme in which the various parties understand their responsibilities and work together effectively.
Continue Your Sectional Title Journey
For more practical guidance, you may also be interested in:
Related Articles
- Defining Roles in Your Scheme – Understand the different responsibilities of Owners, Trustees, Managing Agents and Caretakers, and how these roles work together.
- Decoding Your Levies: Where Does Your Money Actually Go? – A practical look at what levies fund and the financial responsibilities involved in running a Sectional Title scheme.
- Navigating Arrear Levy Collections – Protecting the Financial Stability of Your Community – Learn how arrear levies affect a scheme and the process followed to recover outstanding amounts.
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