Managing Agent: What to Expect
A plain-language guide for property owners working with Erga Properties
Appointing a professional managing agent is one of the most important decisions a property owner can make. This guide explains exactly how Erga Properties operates as your managing agent — our scope, responsibilities, reporting process, and what you can expect from day one.
What a Managing Agent Does
- Tenant sourcing and vetting
Credit checks, employment verification, rental history — Erga handles the full vetting process so you don't have to.
- Lease administration
Erga drafts, signs, and manages all lease agreements in compliance with the Rental Housing Act.
- Rental collection
Monthly invoicing, EFT collection, and arrears management. You receive your net rental on or before a fixed payment date each month.
- Maintenance coordination
Tenant maintenance requests are received, assessed, and coordinated with approved contractors. You are notified and approve major repairs.
- Financial reporting
You receive a monthly income and expenditure statement, showing rent received, deductions, and your net payment.
- Tenant relations
Erga is the primary contact for all tenant queries, complaints, and communication. You can step back entirely if you choose.
The Fee Structure
- Management fee
10% of the gross monthly rental collected. This fee is deducted before your net rental is paid to you.
- Tenant placement fee
One month's gross rental (once-off, charged when a new tenant is successfully placed).
- Maintenance markup
Erga does not mark up contractor invoices. You pay the contractor rate. Erga's coordination is included in the management fee.
- No hidden fees
All fees are set out in your managing agent mandate. Erga will not deduct any amount not agreed to in writing.
Your Monthly Report
- Issued by the 7th of each month for the preceding month.
- Shows: opening balance, rent invoiced, rent collected, arrears, maintenance costs, management fee, net payment to owner.
- Sent to your email on file. Electronic copies retained for 5 years.
- Annual summary provided for tax and audit purposes.
Maintenance: Your Approvals
- Routine maintenance (under R500): Erga resolves immediately and reports to you.
- Mid-range maintenance (R500–R3,000): Erga obtains a quote and sends to you for approval before proceeding.
- Major maintenance (over R3,000): Two quotes obtained. Your written approval required before any work proceeds.
- Emergency maintenance: Erga acts to prevent further damage regardless of cost, and notifies you immediately.
The Mandate and Your Rights
- A formal managing agent mandate is signed before Erga commences management.
- The mandate sets out the duration, fees, and both parties' obligations.
- You retain ownership and final decision-making authority on all matters.
- Either party may terminate the mandate with one month's written notice (or as per agreed terms).
- On termination, Erga will provide a full handover of all documentation, keys, and financial records within 7 business days.
© 2026 Erga Concepts (Pty) Ltd — Trading as Erga Properties | www.erga.co.za | Alberton, Gauteng
This document is provided for information purposes. It does not constitute legal advice.