Delegating to a Managing Agent: What Trustees Can and Can't Outsource

One of the most persistent misunderstandings in sectional title governance is that appointing a managing agent hands over responsibility for the scheme. It doesn't – it delegates the work, not the accountability.

What Can Reasonably Be Delegated

Day-to-day levy collection, invoicing, and account reconciliation
Coordinating maintenance requests and contractor management
Convening meetings, preparing notices, and drafting minutes
Compliance administration – PAIA manuals, insurance renewals, statutory filings
Financial reporting and budget preparation for trustee and owner review

What Trustees Must Always Retain

Non-Delegable Trustee Responsibilities

Approving the budget and any special levies
Making policy decisions – arrears policy, conduct rule enforcement, capital projects
Overseeing and holding the managing agent accountable for performance
Ultimate legal and fiduciary responsibility for the scheme's governance

A managing agent acts on the mandate the trustees give them. If that mandate is vague, or trustees rubber-stamp agent recommendations without genuine oversight, the trustees remain exposed even though the work was outsourced.

Setting Up Delegation Properly

Define Scope in the Management Agreement

Set out exactly which functions are delegated, and which decisions still require trustee sign-off.

Set Reporting Cadence

Agree how often, and in what format, the agent reports back – financials, arrears, maintenance status.

Establish Approval Thresholds

Set a monetary limit above which the agent must obtain trustee approval before committing the scheme to expenditure.

Review Performance Regularly

Hold the agent to the agreed service levels, and address underperformance directly rather than assuming it will self-correct.

The Value of Getting This Right

Clear delegation is what allows trustees – who are, after all, volunteer owners with their own jobs and lives – to genuinely benefit from professional management, without either micromanaging the agent or abdicating oversight altogether.

Delegate the Work, Keep the Oversight

A managing agent is a force multiplier for good governance, not a substitute for it. Trustees who understand exactly what they've delegated – and what they haven't – get the most value from the relationship.

Looking for a Managing Agent Who Respects the Line?

PPSP works within a clearly defined mandate, reporting transparently so trustees retain real oversight.

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