IPM explore what it means when you are a Director of an RMC.
So each year you pay an amount of money to your property managing agent. You get a budget with lots of categories, which you may be unsure of. You then get a set of accounts saying what the property manager has spent your money on after the year is over.
What are the Directors of Resident Management Companies (RMC) responsible for?
Fundamentally, the Directors of your RMC must act in a way that promotes the success of the development to which they are a Director of.
They have the responsibility to make decisions that are in the best interest of the company members (usually the leaseholders) have to justify their reasoning. What this means is that the Directors must make the best decisions possible for the development.
Managing Agents Financial Update
Most Directors of RMC’s meet on a quarterly basis to review various information and factors, including the financial health of the building.
Below are the financial reports you must receive:
- Budget vs Spend to date
This is an ongoing report highlighting what was budgeted for at the beginning of the year and what has been spent in that category up to a specific date. Ideally the amount spent to date should tally up with the amount to be spent for the rest of the year
- Service Charge Arrears
This is probably the most important report. Service Charges are the essential component of the management service income which is required to invest back into the development.
- Cashbook report
It is important to find out the ‘cash flow’ status of the building. A periodic cashbook is essential to Directors. Clear analysis of exactly where money is being spent can allow Directors to make better financial decisions for the building over the financial year.
- Bank Balances
A simple summary which compliments the other financial reports above. With buildings potentially having multiple bank accounts for service charges, reserve funds, sinking funds, an overall view of the balances can be a useful insight.
Your Managing Agents Maintenance Update
With the financial information being of upmost importance, it is essential to review this first.
After that has been completed, your Managing Agents now need to provide an update on maintenance and strategy, both completed to date and for the rest of the year.
Upon commencement of IPM’s management service our team hold regular meetings with leaseholders. This enables us to ensure we manage any requests, maintenance issues or concerns. promptly to reduce time and cost to all parties.
With the latest in property management software you can view, pay and manage all matters to do with your development on-line using our tenant portal.