Using a Block Management Agent
This article provides basic guidance on why you should appoint a managing agent, where leaseholders are subject to the payment of a service charge. It is particularly relevant if you are a director of a resident management or right to manage company with a block of flats.
Flat-owners may acquire management responsibilities in different ways: through acquisition of the freehold of the building, through the statutory Right to Manage (RTM) or simply by delegation of the management responsibilities from the landlord. Whatever the route, the management is normally exercised through some form of resident management company (RMC). The RMC will assume responsibility for the management and repair of the building, and for compliance with the obligations of the lease and the wide range of relevant statutory requirements. It will have to assess how best to achieve this, usually by appointment of a professional block managing agent.
The role of a residential block managing agent today is a complex one and requires a highly professional approach. To carry out the role requires knowledge of landlord and tenant law, building construction, Health and Safety regulations, basic accounting and more.
Professional managing agents bring an organised approach to the planning and collection of the service charges and reserve funds, the timetables for redecoration, repairs, inspection and supervision of works.
Their assessment of what must be done, and when, will be independent of private interests and preferences, and based solely upon their duty to keep the premises in good repair. The process of collecting funds and the responsibility for taking steps to recover unpaid charges will fall under the responsibility of the managing agent.
A managing agent handles all the mundane and time-consuming administration. If issues and disputes arise, these can be dealt with impartially by the managing agent who’s primary goal is to ensure they site is well maintained and stays in good condition.
Managing agents should hold professional indemnity insurance as a further protection against negligent acts or incompetence and have the responsibility for compliance with leases, laws and codes of practice.
For more information about the services covered by our team at Inspired Property Management or to discuss your potential site management requirements, please speak to one of our Property Management Experts who can advise you further.