Body corporate / HOA / sectional title management

Questions a trustee should ask before appointing an agent

Ask these key questions before appointing a body corporate managing agent: services, reporting, experience, dispute handling, and insurance. Protect your scheme.

Appointing an agent for your body corporate is one of the highest-stakes decisions a trustee will make, yet many schemes rush it or accept the incumbent without serious scrutiny. The person or firm you hire will handle cash, enforce rules, manage disputes and represent your scheme legally—and you will be held responsible if they fail. That's why the questions you ask before signing matter more than the company's branding or how friendly they seem.

Start by establishing whether the candidate can actually do the job. Ask for a detailed breakdown of which services they propose to provide in-house and which they would outsource or subcontract. Many agents claim to offer everything, then funnel repair approvals, legal work or accounting to external firms without your input or competitive quotes. Understand the chain. Ask who their legal advisor is, their preferred contractors and whether they have procurement relationships that might influence their recommendations. Then ask how they manage conflicts of interest when they recommend a service provider.

Inquire about their experience with schemes of your size and complexity. A five-person trustee team in a small townhouse complex has very different needs from a 200-unit residential estate. Ask the candidate to name three similar schemes they manage now and request permission to contact those trustees directly—not the scheme addresses provided by the agent. When you ring those trustees, ask if the agent responds to emails within 24 hours, whether they have ever missed a payment deadline, and whether the trustee receives clear monthly reconciliations.

What data and reports do you provide, and how often?

A trustee cannot govern in the dark. Ask the candidate exactly what monthly reports they will deliver, in what format, and by what date each month. Specifically ask whether they will provide a reconciliation showing opening balance, all receipts and payments, closing balance and variance explanations. Ask whether they separate the operating and reserve fund accounts and whether they will flag any unusual transactions or expenditure exceeding approval thresholds. Request sight of a sample report from another scheme, not a template. If the agent cannot commit to fixed reporting dates or the sample is vague, that is a warning sign.

Ask how the agent handles reserve-fund planning. Will they conduct a condition assessment of common property and recommend a reserve-fund contribution based on that assessment? Or will they simply collect what the previous agent proposed? Ask whether they will alert you if the reserve fund is underfunded or if spending against it seems inconsistent with their report. Many schemes discover years later that their reserve fund was treated as a general piggy bank.

How do you handle disputes, complaints and member communication?

Ask the agent to describe their process when a resident complains about maintenance, a neighbour dispute or a rule violation. Will they investigate, document their findings and recommend a course of action, or will they expect the trustee to handle all judgment calls? Clarify whether they chase overdue levies themselves or flag accounts to you and wait for instructions. Ask how they communicate with residents—email, WhatsApp, notices posted on the scheme noticeboard, or a resident portal—and whether they handle escalations or pass them immediately to the trustee.

Inquire about their professional indemnity insurance and whether they carry fidelity cover. Ask for the policy limits and request a certificate of currency. If they demur or claim it is not necessary, reconsider immediately.

Finally, ask what will happen if you are unhappy during the contract term. Is there a probation period with easy exit? What is the notice period? Can you terminate without penalty if they breach a service standard? An agent confident in their work will agree to reasonable trial terms.

Once you have answers, compare them side by side. The cheapest fee rarely delivers the clearest reporting or the most responsive service. When you are ready to appoint, look for a verified agent on Strove who can provide references and a clear statement of what they will—and will not—do.

Common questions

Should I interview more than one agent before appointing?: Yes. Ask each candidate the same questions to compare answers directly. Check references from their current clients, not just provided contacts. The cheapest fee often masks poor reporting or slow communication, so compare the full service offer, not price alone.
What is the key thing to verify before appointing an agent?: Ask for proof of professional indemnity insurance and fidelity cover, with policy limits stated. Request a certificate of currency. This protects your scheme if the agent makes an error or mishandles funds.
Can a trustee terminate a managing agent mid-contract if they are not performing well?: That depends on your contract terms. Before appointing, ask whether there is a probation period, a notice period you can trigger, and whether you can exit without penalty if the agent breaches service standards. Build these exit terms into your agreement.
What should I do if the agent refuses to answer my questions clearly?: Treat this as a red flag. A competent agent should explain their processes plainly and provide references willing to discuss their service. Hesitation or vague answers suggest they may hide problems later.

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More on Body corporate / HOA / sectional title management

What data and reports do you provide, and how often?

How do you handle disputes, complaints and member communication?

Common questions

Should I interview more than one agent before appointing?

Yes. Ask each candidate the same questions to compare answers directly. Check references from their current clients, not just provided contacts. The cheapest fee often masks poor reporting or slow communication, so compare the full service offer, not price alone.

What is the key thing to verify before appointing an agent?

Ask for proof of professional indemnity insurance and fidelity cover, with policy limits stated. Request a certificate of currency. This protects your scheme if the agent makes an error or mishandles funds.

Can a trustee terminate a managing agent mid-contract if they are not performing well?

That depends on your contract terms. Before appointing, ask whether there is a probation period, a notice period you can trigger, and whether you can exit without penalty if the agent breaches service standards. Build these exit terms into your agreement.

What should I do if the agent refuses to answer my questions clearly?

Treat this as a red flag. A competent agent should explain their processes plainly and provide references willing to discuss their service. Hesitation or vague answers suggest they may hide problems later.