Annual review of managing agents aligns interests of all

There are three principles which the Ministry of National Development must keep in mind when considering whether or not to have an annual review of condominium managing agents ("Annual reviews of condo managing agent may be dropped"; Feb 20).

First, the interests of residents must be protected. Second, disputes between residents, management committees and managing agents must be minimised. Third, the interests of the managing agent must be considered.

The annual review actually aligns the interests of the managing agent with that of the residents.

Management committees are elected annually. It helps if it is also given the authority to review the appointment of the managing agent.

It is in the interest of the managing agent to act responsibly throughout the year so that the annual review will be just a routine exercise.

After all, it is not in the interest of the residents or management committee to change managing agent if it is performing well.

The argument that abolishing the annual review will help the managing agent to plan for the long term does not hold water.

Documentation is the key to long-term planning. If proper documentation is in place, the next managing agent can easily take over and implement the plans.

Hence, annual reviews of the managing agent should remain.

Steven Gregory Ang Boon Kiang

A version of this article appeared in the print edition of The Straits Times on February 23, 2017, with the headline 'Annual review of managing agents aligns interests of all'. Print Edition | Subscribe