Why Do We Need a Managing Agent and What Do They Do?
Not all properties have managing agents, but most do. Managing agents take care of the freehold interest of a residential block, ensuring professional, efficient, and compliant property management. This service saves time and reduces stress for leaseholders, helps maintain the property’s value, and fosters a harmonious living environment. Appointed agents handle key responsibilities, including building insurance, maintenance issue resolution, compliance with fire regulations, health and safety, and oversight of major works..
What Type of Properties Do You Manage & What Areas Do You Cover?
We manage a wide range of developments, from Victorian conversions to brand new blocks, with a minimum size of 4 units. Our primary focus is South West London, however we also manage properties in other parts of London.
What is a Freeholder?
A freeholder owns the land on which a property is built.
What is a Leaseholder?
A leaseholder rents the property from the freeholder for a specified period, which can span years, decades, or even centuries.
What is a Management Company?
A management company, or Residential Management Company (RMC), is made up of flat owners within a block who have taken over various management and landlord responsibilities from the freeholder. Typically, the directors of these companies are elected from among the residents, and they hire a managing agent to handle daily operations and ensure regulatory compliance.
What is a Service Charge?
A service charge is a fee paid by all flat owners within a block. These payments are deposited into a designated client bank account, held in trust in compliance with Client Money Regulations. An annual budget is prepared and agreed upon, outlining anticipated expenditures. The required service charge is then calculated and communicated to each leaseholder along with detailed forecasts.
What is Ground Rent?
Ground rent is a fee paid by leaseholders to the landowner. The terms for this payment are specified in the lease, typically paid annually or semi-annually.
What are Reserve Funds?
Reserve Funds are collected over time to ensure that there is sufficient money available for future major works, such as internal and external decorations. A well run block will typically have a Reserve Fund that is built up over time.
How is the Building Insured?
It's advisable to have a block policy for buildings insurance, covering the entire block of flats. The premium is then divided among the flats according to the proportions stated in the leases. While this ensures comprehensive coverage for the building, leaseholders are encouraged to obtain their own contents insurance.
Do You Carry Out Inspections?
Yes, our property managers inspect properties periodically throughout the year, depending on the size and complexities of the building. More frequent inspections are conducted if there are ongoing maintenance issues or for more intricate buildings.
What Contractors Do You Use?
We collaborate with local contractors we've built strong relationships with over the years. They offer competitive rates and are reliable and trustworthy. We also welcome recommendations from clients, provided the contractors have the necessary certifications and insurance.
What is a Section 20 Notice (S20)?
A Section 20 Notice informs tenants that the agent or landlord proposes work on the building that will cost any tenant more than £250, or plans to enter an agreement for works/services lasting over 12 months, costing any tenant more than £100 in a 12-month period. This notice protects leaseholders from paying excessive sums for building work.
What Happens If the Leaseholder Doesn’t Pay?
Leaseholders must pay service charges and ground rent promptly, as delays can affect the day-to-day management of a building. Agents cannot effectively manage a building without the necessary funds. Non-payment can lead to forfeiture proceedings, potentially resulting in the landlord repossessing the flat. However, the Commonhold and Leasehold Reform Act 2002 imposes restrictions on this right.
Is It Easy to Change Managing Agents?
Yes! You can start by requesting a quotation from us. Once satisfied, you can notify your current agent to give notice. This process typically takes one to three months. We will need the freeholder or the Director/Secretary of the management company to sign our terms of business/block management agreement. An initial cost is involved due to the extra time required for auditing the property and studying the leases. The annual fee varies based on the block's size, number of units, and management level required. We do not take commissions from suppliers or contractors but charge a supervisory fee for major works.
