Trustees vs Managing Agents: Understanding the Difference in Responsibilities
Andre Tap
6/25/20263 min read
Trustees vs Managing Agents: Understanding the Difference in Responsibilities
A Partnership for Effective Community Management
One of the most common misconceptions in sectional title and body corporate management is the belief that the Managing Agent is responsible for making decisions on behalf of the Body Corporate.
In reality, a Managing Agent and the Trustees serve very different roles. While the Managing Agent provides professional guidance, administration, financial management, and operational support, the authority to make decisions remains with the Trustees acting on behalf of the Body Corporate.
Understanding this distinction is essential for the smooth operation of any scheme.
The Role of the Trustees
Trustees are elected by the owners to manage and control the affairs of the Body Corporate. They act in a fiduciary capacity and are responsible for making decisions that are in the best interests of all owners.
Typical trustee responsibilities include:
Financial Oversight
Reviewing financial reports and management accounts.
Approving supplier payments where required.
Monitoring levy collections and arrears.
Reviewing and approving budgets.
Making decisions regarding special levies when necessary.
Maintenance and Repairs
Deciding on major maintenance projects.
Reviewing quotations and approving contractors.
Prioritising maintenance requirements.
Ensuring the common property is properly maintained.
Governance and Compliance
Enforcing conduct rules.
Ensuring compliance with legislation and scheme rules.
Calling trustee meetings and annual general meetings.
Making resolutions on matters requiring trustee approval.
Strategic Decision Making
Approving major expenditures.
Deciding on legal action where required.
Appointing service providers.
Determining the long-term direction and priorities of the scheme.
Simply put, Trustees are the decision-makers.
The Role of the Managing Agent
A Managing Agent is appointed by the Body Corporate to implement decisions and provide professional management services.
The Managing Agent's role is generally administrative, advisory, and operational.
Typical responsibilities include:
Financial Administration
Processing levy statements.
Managing debt collection processes.
Preparing monthly financial reports.
Processing supplier invoices.
Reconciling bank accounts.
Maintaining accounting records.
Administrative Support
Maintaining owner and tenant records.
Coordinating meetings and distributing notices.
Recording and distributing minutes.
Managing correspondence.
Maintaining scheme records.
Operational Coordination
Obtaining quotations when requested.
Liaising with contractors and suppliers.
Coordinating maintenance requests.
Following up on approved work.
Assisting with insurance claims and administration.
Professional Guidance
Advising Trustees on best practice.
Highlighting compliance requirements.
Providing recommendations and options for consideration.
Assisting Trustees in understanding their obligations.
Simply put, Managing Agents administer and implement; Trustees decide.
Why Communication and Engagement Matter
A common challenge experienced by many Body Corporates is when information is available but not actively reviewed.
Managing Agents can only act on information that is communicated and decisions that are made by the Trustees. If reports are distributed, quotations are provided, or maintenance issues are highlighted, trustee action is often required before the matter can proceed.
Effective governance depends on Trustees remaining engaged and informed.
How Chili Property Management Supports Trustees
At Chili Property Management, we believe that informed Trustees make better decisions.
To ensure Trustees have access to the information they need, we provide:
Monthly Financial Reporting
Every month, Trustees receive detailed financial reports showing:
Current financial position.
Levy collections and arrears.
Supplier invoices awaiting payment.
Cash flow information.
Budget comparisons.
This allows Trustees to make informed decisions regarding expenditure and cash management.
24/7 Online Portal Access
Trustees have continuous access to our online management portal, which provides real-time information including:
Financial reports.
Outstanding supplier invoices.
Maintenance requests.
Work orders and progress updates.
Levy accounts.
Scheme documentation.
Information is therefore available at any time, not only during trustee meetings.
Transparent Communication
Our team records and tracks maintenance matters, contractor communications, and financial information through our management systems, ensuring that Trustees have visibility of ongoing matters and can make timely decisions.
Professional Guidance
While the final decision always rests with the Trustees, we provide recommendations, guidance, and practical solutions to help Trustees fulfil their responsibilities effectively.
The Most Successful Schemes Share One Common Trait
The best-performing Body Corporates are those where Trustees and Managing Agents work together as partners.
When Trustees actively engage with the information available to them and Managing Agents provide accurate reporting, professional administration, and sound advice, the result is:
Better financial management.
Faster decision-making.
Improved maintenance standards.
Greater transparency.
A more harmonious community.
A Managing Agent cannot replace the governance role of the Trustees, just as Trustees should not be expected to manage the daily administration of a scheme.
When each party understands and fulfils its role, the entire Body Corporate benefits.
Need Professional Body Corporate Management?
Chili Property Management provides transparent financial management, professional administration, real-time reporting, and practical support to help Trustees fulfil their responsibilities with confidence.
Contact our team to learn how we can help your Body Corporate operate more effectively.