&
A property management company is responsible for managing all aspects of a building’s day-to-day upkeep on behalf of a landlord or Resident Management Company (RMC)/Right to Manage (RTM) company . Introduction
&
This encompasses everything from repairs and maintenance, and handling finances, to health and safety and resident relations, and everything in between. This guide will explain the full remit of a property management company and what to look for when appointing one. But first, it’s important to understand UK property ownership specifically leasehold and where the role of a property managing agent fits in.
Who appoints a managing agent and broadly what should they do?
Leaseholders and service charges In England and Wales, most apartments (and some houses) are owned under a leasehold
The upkeep of these communal areas can be administered either by the landlord or by the leaseholder(s), under what is known as a Right to Manage agreement. In either case, a service charge will be required to cover the costs of the maintenance. A full breakdown of the service charge costs will be included in the leaseholder agreement upon taking possession of the property.
The RMC/RTM company may self-manage, or they may wish to appoint a managing agent to act on their behalf to manage the property. The client i.e. the landlord or RMC/RTM will always have the final legal responsibility for the full and proper management of the property, but, through the Management Agreement, are delegating the day- to-day activities to the duly appointed managing agent. Using an agent passes some of the responsibility for compliance with leases, laws and codes of practice to the managing agent. However, the Directors of an RMC/ RTM company are responsible for setting policy and monitoring the work of the agent. The agent’s service costs are covered by the service charge funds, which will be determined by the cost of necessary repairs and maintenance, as well as the management and insurance of the building.
A managing agent is appointed by the person or company who has the legal responsibility for the delivery of services of the landlord under the terms of the lease. Flat owners may acquire management responsibilities through acquisition of the freehold of the building, through the statutory RTM or through an RMC. Through this they will assume responsibility for the management and day-to-day repair of the building, compliance with lease obligations and statutory requirements. The lease sets out what services they must deliver. Legal responsibility for the management of the property and the ultimate responsibility for the full and proper management will remain with the landlord or RMC/RTM.
structure. This means that the ‘owner’ holds a lease to live in the property for a fixed number of years rather than owning it outright. The length of the lease typically runs for multiple decades often up to hundreds of years and will have been made clear in legal documents at the point of taking possession. The lease is issued by an underlying landlord who ultimately owns the property. The lease itself will set out the terms of the agreement between the leaseholder and the landlord. This will include details such as which areas of the property are the private responsibility of the leaseholder, which responsibilities are shared, and what services the landlord must provide. If you think about it in terms of a block of apartments, the apartment itself would be considered the responsibility and personal possession of the leaseholder (or their tenant, if they choose to rent out the property). Areas such as the entrance, lifts and corridors would be considered communal areas and require collective responsibility.
Made with FlippingBook - PDF hosting