Most sectional owners believe that a managing agent's function is to send out statements and collect levies. Without doubt, this is a major and highly visible part of the agent's responsibilities, but a competent agent will do a lot more for the body corporate.

Managing a sectional scheme requires extensive knowledge of the Sectional Titles Act and rules, and access to secretarial and accounting facilities. Although some bodies corporate undertake to manage their scheme without assistance, this is very seldom satisfactory, as most schemes possess neither the knowledge nor the facilities to manage themselves. Most bodies corporate appoint a registered managing agent to take over the management of their scheme.

A managing agent is appointed in terms of management rule 46, which states the appointment must be in writing for a period of one year, with automatic renewal on the anniversary of appointment unless either party gives notice to the other that the contract will not be renewed. If the appointment of the managing agent is not reduced to writing within thirty days, it is voidable at the option of either party. The trustees are entitled to appoint a managing agent, and must do so if directed by a simple majority of the members of the body corporate at a general meeting or by a registered mortgagee who holds 50% of the bonds within the scheme.

The decision as to which agent to appoint is usually made by the trustees and not the body corporate, even if the decision to appoint a managing agent may have been made by the body corporate. The body corporate can, by special resolution, terminate a managing agent's appointment, in which case the agent will have the right to claim compensation from the body corporate should it be proved that the reason for termination was not justified.