Trust Property Management in South Africa: What Trustees Need to Know

Trust property management in South Africa means managing rental property for trustees, who must act with the care, diligence and skill the law expects of them. This guide from The Property Bureau in Cape Town sets out what trustees need from a managing agent. It is general information, not legal advice.

Managing rental properties held in a trust carries higher legal and reporting obligations than standard residential property management. Here is what trustees need to know before appointing a managing agent.

The trustee’s legal position

A trustee who holds rental property within a trust has a fiduciary duty to act in the interests of the beneficiaries. Section 9(1) of the Trust Property Control Act 57 of 1988 puts it plainly: a trustee must act with the care, diligence and skill which can reasonably be expected of a person who manages the affairs of another. In practice, that duty extends to how the property is managed: rental income must be correctly received and accounted for, maintenance must not be deferred to the point of depreciation, and all reporting must be complete and auditable. A private landlord can sometimes absorb a month of poor management. A trustee, acting on behalf of beneficiaries, cannot.

A trustee may also only act once the Master of the High Court has authorised them in writing, under section 6(1) of the same Act. That document, the Letters of Authority, is the first thing a managing agent should ask to see.

Why trust properties have higher management standards

Standard residential property management focuses on one principal. The landlord owns the property, receives the income, and makes decisions. Trust property management involves multiple parties: the trustees (sometimes co-trustees who must agree on material decisions), the beneficiaries whose interests are being protected, and often the attorneys, accountants, or financial planners who advise the trust. Each decision requires documentation and, in the case of co-trustees, a record of how agreement was reached.

For an overview of how we manage trust-held residential properties, see our trust portfolio management page, or contact us to discuss a specific portfolio.

The challenge trustees most often face

The most common situation we encounter is a testamentary trust where the trustees have inherited a property portfolio from an estate. The properties are typically well-located and well-maintained at the point of transfer, but the trustees are often professionals or family members with no background in property management. They have clear fiduciary responsibilities and limited time to fulfil them. The portfolio needs a managing agent who understands both the property market and the reporting obligations that come with trust administration.

What good trust property management looks like

For a trust portfolio to be managed to the standard trustees need, the managing agent must provide:

• Separate financial reporting per trust, not consolidated across multiple clients
• Monthly reconciled statements
• Documented inspection records
• Timely written recommendations when maintenance or tenancy decisions arise

Co-trustee approvals work better when the agent provides a clear recommendation with supporting evidence, rather than presenting options without a view.

All trust property rental income we manage flows through PayProp’s trust accounting platform. Statements are itemised, auditable, and available on demand. For property valuations within the trust context, our valuation service provides documented current-market assessments that can support trust reporting requirements.

POPIA and FICA

Trust property management involves collecting and processing personal information about tenants and beneficiaries. Under POPIA, that information must be collected for a lawful purpose, stored securely, and not kept longer than necessary. FICA may also require the agent to verify the identity of the parties it deals with, depending on the work involved. Before appointing any managing agent, ask how they handle both, and ask to see it in writing.

A trustee’s checklist before appointing an agent

• Are the trustees’ Letters of Authority current, and does the agent have a copy?
• Will the trust receive its own statements, separate from every other client?
• How are co-trustee approvals requested and recorded?
• Where is the rental income held, and can the trust’s accountant access the statements?
• Is the agent registered with the PPRA and holding a current Fidelity Fund Certificate?

If the property is held in a deceased estate rather than a trust, the executor gives the instructions until the estate is wound up. We cover that on our deceased estate property management page.

Frequently asked questions

What does the law require of a trustee who holds rental property?

Section 9(1) of the Trust Property Control Act requires a trustee to act with the care, diligence and skill reasonably expected of a person managing the affairs of another. For rental property, that means correct income accounting, proper maintenance and complete records.

Can a trustee act before the Master issues Letters of Authority?

No. Under section 6(1) of the Act, a trustee may only act once authorised in writing by the Master of the High Court.

How is trust rental income handled at The Property Bureau?

All trust rental income we manage flows through PayProp’s trust accounting platform. Each trust receives itemised, auditable statements, available on demand.

Do co-trustees all need to approve decisions?

Where the trust deed requires joint decisions, yes. We give a written recommendation with the supporting evidence, so each trustee can approve and the decision is on record.

We manage residential property across Cape Town, mostly in the Southern Suburbs from Rondebosch and Claremont to Kenilworth and Wynberg, and that includes property held in trusts. For our full service, visit our landlord services or property management pages.

Sources: Trust Property Control Act 57 of 1988, sections 6(1) and 9(1) (justice.gov.za). Checked 25 September 2026. General information, not legal advice.