As a flat owner you can sometimes feel trapped in the management arrangements, unsure how to enact change or put off at the thought of adding to your workload.
As your Trusted Property Partner, we aim to demystify and simplify the process to make sure you have control of your home and investment.
Changing your managing agent depends on the existing management arrangements and how your lease is structured.
RTM gives leaseholders the ability to take over the management of their block. This is done by setting up an RTM company that allows them to the ability to appoint their own Managing Agent and control the insurance.
If an RTM company has already been formed (you will know as the name on demands will be a company with RTM in the name), then the directors of that company are responsible for appointing the managing agent. You can find out who they are by carrying out a search at Companies House. You can also request to become a director giving you the opportunity to make decisions and influence the board to re-tender the management contract. You should contact your current managing agent and tell them that you would like to become a director of the management company. Ask them to send your request to the current board of directors.
If you do not wish to become a member of the board then you must convince the current board to re-tender the current managing agent’s contract.
If no RTM has been formed, then changing agents will depend on the parties to your lease. At this point we would recommend getting a copy of your lease from your records and checking whether there are two or three parties named.
The parties shown on the lease will be only the original freeholder/developer/landlord and the first leaseholder/property owner. Although the person that own the freehold or leasehold may have changed over time, the lease will show the original parties that entered into the agreement.
Where this type of lease is in place it means that the current landlord is responsible for appointing the managing agent. It is important first of all to ascertain who this is which can be done by checking your latest service charge demand which will show the name and address for your landlord.
Once you have the name and address the first thing to do is to contact your landlord and ask them to change managing agents. Sometimes when you raise your concerns with your landlord, they will make the decision, for the benefit of all leaseholders, to change the agent. It is always worth trying this route first.
If you are unsuccessful in convincing your landlord you may be able to claim your Right to Manage. You will need a minimum 50% of the leaseholders to agree to become members and there are some other restrictions that must be adhered to. Warwick Estates, and our trusted service partners, are very familiar with supporting leaseholders through the RTM process. Simply contact us for more information.
For some leaseholders they want ultimate control of their building so they come together to buy the Freehold. This may not work if leaseholders cannot raise the funds. It is often quicker to claim your Right to Manage to obtain management control. Leaseholders may proceed with buying the Freehold at a later date.
Finally, and in severe cases you can make an application to the Tribunal to appoint a manager. This will require you to demonstrate poor management but where this is possible then this procedure can work for you.
The parties shown on the lease will be only the original freeholder/developer/landlord, the first leaseholder/property owner and the management company.
Where the management company is a Residents Management Company (RMC) then they will usually be responsible for appointing the managing agent. Normally all leaseholders become members of the company when they purchase their property. As with RTM Companies, there will be a board of directors who will instruct the managing agent on all matters. You can find out who they are by carrying out a search at Companies House. If you become a Director then you have the opportunity to make decisions and influence the board to re-tender the management contract. You should contact your current managing agent and tell them that you would like to become a director of the management company. Ask them to send your request to the current board of directors.
If you do not wish to become a member of the board then you must convince the current board to re-tender the current managing agent’s contract.
It is important to note however that where the management company in the lease is actually the managing agent, which is fairly common in larger developments, this may require further investigation. There may be a clause in the lease about exiting the agreement or where this is not the case there may be the option to claim the Right to Manage or vary the lease. Simply contact us to find out more.
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