Block Management: Changing agents and what you need to ask
Changing the management company of your block might seem like something you can’t do, but it is the best option if things aren’t going well. Taking action over inaction is a sure fire way to keep everybody on board, and will avoid bigger problems down the line.
What is block management?
Sandersons UK manages a diverse range of apartment blocks, housing & mixed-use estates. Our aim has always been to maintain harmony between leaseholders, freeholders and home builders rather than add to or create tension between these parties.
We do this by ensuring that proactive maintenance & clear communication is our top priority. We firmly believe that if the foundations are strong, then everything else can be managed well.
Sometimes, it doesn’t always work that way, and a change of agents is looked at, or needed. But when is it time to change agents?
Why change agents?
Changing agents can stem from a variety of reasons. There are usually signs it’s time for that change, such as:
- Poor to no communication
- Poor customer service
- Inadequate financial management
- Lack of transparency
More than two thirds of leaseholders report being unhappy with the service provided by their managing agent, but you can take action.
Your options in seeking to change agents
There are three main options to consider when it comes to thinking about changing managing agents.
1.Right to Manage (RTM)
RTM gives qualifying leaseholders the ability to take over the management of their block. This is done by setting up an RTM company that allows them to take control of the building's maintenance needs, and appoint a Managing Agent of their choice. Solicitors can guide you through the RTM process and help you take back control of your leasehold property.
2.Appointment of a Manager
Appointment of a manager is a ‘fault-based’ right, which allows individual leaseholders to apply to the First-tier Tribunal to appoint a manager if they consider the management of the block to be unsatisfactory. The FTT has the power to appoint a manager in place of the landlord or RTM company, so long as the statutory grounds can be established and it is “just and convenient” to do so. Often, this is a process of ‘last resort’ only, but it is important to know your rights as a leaseholder.
3.Review of Management Contract and Lease
A review of your management contract will identify any notice periods or triggers that will allow you to end the contract with your incumbent managing agent. Sometimes the lease can also allow routes to disengage from current management structures. If you are looking to change your managing agent, this is the first step to take.
5 things to ask a potential new Managing Agent
1 - What types of property do you manage?
It’s important to know that the prospective agent you are looking to work with has experience in the type of property you are living in. This is an important first question, as you will want to ensure that a potential Managing Agent has the skills and knowledge required, in order to successfully and efficiently manage your property.
2 - How often do you visit the properties that you maintain?
You don’t want an agent who makes it their mission to visit all the time for both logistical and personal reasons, and many problems can be solved if the right contractor is instructed immediately. You also would want to know that your agent is going to undertake regular inspections and identify necessary repairs and check on the progress of works that are being done.
3 - How much do you charge?
Not only will you want to know the cost, but you will also need to know how that is structured - and exactly what services the cost includes, such as telephone and postage, or administration duties. An important question to ask is how major works are completed and how large projects are managed.
4 - How do you select contractors to undertake work?
Having local and completely independent contractors connected to your building will mean that high quality services can be demonstrated and offer real value for money.
Noting contractors who work alongside the Contractors Health and Safety Scheme (CHAS) will ensure a quality service delivered in compliance with industry best practice and statutory obligations.
5 - What is your process for dealing with lessees in breach of their terms?
A management company must enforce the terms of the lease equally, make sure your agent has a robust process whereby complaints are taken seriously and breaches of the lease are investigated promptly. A good agent will be a good communicator, letting people know their rights and responsibilities from the start, in clear and simple terms. This will stop minor problems becoming major pains. Being aware of this process is important, and by enquiring you can be sure that the agent is working in your company's best interest. It will also give you a strong case to argue if these steps are not taken as promised.
If you have any further questions regarding block management, please feel free to give us a call. You can also visit https://www.sandersonsuk.com/block-management-sites for more information.