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Flats to Rent | |
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Houses to Rent | |
Opening
Times
Monday: 9:00am - 5:00pm
Tuesday: 9:00am - 5:00pm
Wednesday: 9:00am - 1:00pm
Thursday: 9:00am - 5:00pm
Friday: 9:00am - 5:00pm
Saturday: morning viewings by appointment only.
Sunday: Closed.
Tel. 0113 2302303 or 2302304
Intercity Accommodation
21 Moor Road,
Far Headingley,
Leeds,
LS6 4BG
U.K
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INTERCITY ACCOMMODATION
About appointing a Managing Agent
What is a Residents Management Company
(RMC) ? Company records show that there are over 60,000 registered Residential Management Companies and a high proportion relate to flats. The highest concentrations are in the South East, South Coast, Bristol & Bath areas, Home Counties, South Midlands and the North West. The RMC will have a Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer a leasehold or freehold property, which is normally divided into several dwelling units or flats, with each leaseholder owning a share in the company. The leaseholder will be obliged to transfer the ownership of the share to the new leaseholder when disposing of the property. A Residents Management Company (RMC) protects the interests of the leaseholders. RMC’s typically manage common parts of the building although they may have other responsibilities. Your property probably has parts common to all the flat owners living in it: boundaries, roofs, halls, drives and gardens being typical examples. These all require maintenance, insurance, lighting, etc. Monies for day to day requirements will be collected within your service charge requests, however additional monies may be required for larger projects, i.e. replacement roof, the individual flat owners usually fund these costs, by making periodic contributions into a reserve fund. The characteristics of RMC’s The majority of RMC’s are limited by share, although some blocks favour limitation by guarantee. A formalised RMC is very different from an informal residents association: it carries legal status and offers greater protection to all involved. But setting up an RMC can be complex. Although Property Law regulates matters related to long leasehold tenure, Company Law regulates the setting-up and operation of flat management companies Companies may employ a professional managing agent, expert in technical aspects of managing flats and understanding the legislation and regulation required to effectively manage a block of flats or apartments. Should we Self Manage or appoint a Managing Agent? Flat owners may gain management responsibility in various ways, for example, by purchasing the freehold, through Right to Manage (RTM) or simply by delegation of the management responsibilities from the landlord. Whatever the route, the management is normally exercised through some form of resident management company (RMC). The RMC will assume responsibility for the management and repair of the building, and for compliance with the requirements of the lease, plus many statutory requirements. The choices The RMC has is to self-manage by a formed Committee or by the appointment of a professional managing agent. ARMA is the leading trade body in England and Wales that focuses exclusively on matters relating to the block management of residential property, whether for landlords or resident management companies. Members agree to adopt and comply with the principal objectives of the Association and undertake to follow the Codes of Practice issued by the Royal Institution of Chartered Surveyors. The Association promotes and encourages consistent standards of practice by its members and provides a platform for developing and contributing to public debate on new legislation concerning management issues. Residents Management Companies Many leaseholders do manage their buildings themselves, with this they acquire the same responsibilities that the landlord has. Leaseholders should be aware of the work required and their obligations to all shareholders, flat owners and the freeholder. Leaseholders considering self-management should appreciate that this will not provide them with additional freedom as they still are governed by the restrictions and requirements both of the lease and the relevant legislation and codes of practice whilst making management decisions. The task of management for an RMC is an onerous task, which requires a committee with sufficient members to provide an effective management structure. Director and Company Secretary positions are usually unpaid and rely on a number of reliable members. Committee members will be required to fulfil their duties, which can be challenging at times. Duties and obligations Management of a residential block of flats is a largely practical exercise and demands considerable effort, with meticulous approach and care. The building must be regularly inspected, maintained and redecorated to the required standard and at the required times. Budgets must be prepared and monies collected for the works. The RMC will need to appreciate exactly how the Lease operates to ensure how the building should be maintained and how the lease permits the charges to be raised, in advance or arrears. There are requirements to provide final accounts and the annual statutory summaries to all leaseholders. Although the company is the landlord, the accounts must clearly distinguish between the financial affairs of the company and those of the landlord. In cases where a resident is in default of his or her lease, in non-payment or arrears of rent or service charges or in breach of a clause of the lease controlling the use of the flat (subletting, for example), the RMC will be required to take action; this can include threat, or ultimate use, of forfeiture and possession proceedings. RMC’s may feel uncomfortable in direct action against a fellow leaseholder/flatowner and consider such actions better carried out by an independent professional. Leaseholders should choose self-management only where they have a complete understanding of the scope of their role and responsibilities and they must have or acquire the facilities and resources to undertake the task properly. The building is, after all, an investment of many shareholders. Should we appoint a Managing Agent? There are many benefits of professional management, however this service does come at additional cost to leaseholders. Professional managing agents will:- Budget for service charges Send our service charge demands Collect service charges Plan for reserve funds Provide repairs and maintenance as set out in the lease. Complete accounts What to check when appointing a Managing Agent? When you interview Managing Agents you need to be clear about what you want them to do. Produce a specification of the jobs you need them to carry out and provide it to all agents you interview and gain confirmation that they are able to complete all of the tasks required Agents' qualifications There is only one specific qualification for a managing agent, that of the Institute of Residential Property Management, although some managers will be members of the Royal Institution of Chartered Surveyors, or, in the public sector, the Chartered Institute of Housing. However, many agents are members of the Association of Residential Managing Agents, or those who specialise in the management of retirement schemes may be members of the Association of Retirement Housing Managers. The advantages of the appointment of an ARMA or ARHM member is that they will have had to satisfy an independent body of their competence and, as a condition of their membership, will be required to abide by a code of practice and a complaints and disciplinary procedure. Therefore, the management company and individual flat-owners will also have recourse to ARMA or ARHM in the case of complaint about one of their members. Agents' insurances It is most important to confirm the prospective agent's professional indemnity insurance. If the agent is a member of a professional or trade association, professional indemnity insurance will be an automatic condition of membership. However, the existence of the cover, and its extent, must be checked. Where a resident management company delegates tasks to a managing agent, the residents' company will remain legally answerable for any neglect, omission or mistake by the agent and must be sure that the agent has the means for compensation or damages. References It is sensible to gain references from your chosen managing agent. It is sensible to ask for references from a director of a block they currently manage that is similar to your own. Questions to ask your prospective Managing Agent? Do your fees carry VAT? How many years have you been in the property management business? How many staff in your company are involved with management? How many blocks do you manage? Please supply three references for blocks you manage. Ideally these should be similar to our own property and in our area. Please supply the name and telephone number of the chairman/secretary of the residents' association or board of directors of those blocks. What fees will you charge us? Do you have a comprehensive panel of contractors? Do you charge a fee for contractor selection? Will you check that contractors complete their work adequately? What selection criteria do you use for contractors you use? How often will you visit us? Will service charge monies be kept in an individual client account for our RMC, how are they administered and who receives any interest? What format will you provide financial information required and can you supply an example. How do you deal with unpaid service charges - what procedures are in place to deal with non-paying lessees? How do you deal with lessees in breach of their leases? How do you deal with complaints? Do you offer an out-of-office-hours service for emergencies? If so, please provide details. Do you arrange Residential Buildings Insurance and can you supply a copy of the specimen policy. How often will the Residential Buildings Insurance be reviewed to ensure it remains competitive? List any professional or trade bodies to which your firm belongs. Provide full details of your professional indemnity insurance. Provide a copy of any standard contract you use. EXPERIENCE REQUIRED Proven record caring for lessees Working with a lessee managed block Proven record in arrears reduction Cash flow management Legal experience e.g. obtaining Counsel's advice; County Court representation; working effectively with solicitors; in-house legal skills Successful record in managing and reducing legal disputes Freehold purchase experience Leasehold standardisation experience Operating a management company that will stay within agreed budgets
Ability to formulate effective strategies to guide the Board or association Ability to provide written and oral reports and keep detailed records Ability to discuss and agree policy with the Board or association Efficient in following up agreed actions Self-motivated to continually improve and maintain good management Proactive problem-solver Skilful communicator and negotiator, both written and verbal Codes of Practice you should expect from your Managing Agent? Expected codes of practice from your agent CONTRACTUAL DUTIES To agree, in writing, the terms of engagement to manage a client's property, in as detailed a form as is reasonably possible, and to make clear the fee structure and the categories of other services for which additional fees may be charged. To manage the client's property in compliance with all the current applicable legislation, terms of leases, contract documentation and good business practice. To provide as cost-effective a service as is reasonably possible within the constraints of prudent and planned maintenance and to enquire as to whether contractors preferred or selected by clients or lessees have suitable references and, where contracted to do so, that all final work is checked and signed off before funds are released. On request, to provide guidance to the client as to the insurance requirements under the lease terms and, where required by the client, to supply an appropriate level of insurance cover, based on an independent valuation, sufficient to meet the client's obligations. FINANCIAL DUTIES To ensure that client's money is kept separate from office accounts at all times and that client accounts can be individually identified. Funds in any one client account will not be used to finance another client's property. Funds shall be held in a recognised bank or building society in a clearly designated client account. To maintain a current insurance policy adequately indemnifying the firm against proven professional negligence claims. To ensure that clients' money is properly and regularly accounted for and that any funds or monies required for specific future works are placed on deposit in an appropriate interest-bearing account to earn interest to the credit of that account. To keep detailed records of all transactions relating to client's property with all expenditure made from the client's account suitably authorised. To ensure that annual or other required periodic accounting is carried out promptly, ensuring adequate supporting information is provided or available for inspection. To concertedly endeavour, where so required, to provide all the necessary information for the audit of any end-of-period accounts so that the audit can be carried out. How to tender for a Managing Agents services
It is most important that you invite prospective agents to the building, to see it and to meet the RMC committee. Ideally, in the course of discussion, try to meet the Property Manager who will actually be managing the building. Try to visit other buildings presently managed by the prospective agent yourselves to judge their ability and competence firsthand. When you interview prospective agents, you must ask questions. For example: what arrangements does the agent have for general maintenance inspections? how are minor repairs responded to and in what timescale? how are service charge monies collected and what are the agent's banking arrangements - what arrangements are made regarding interest? How are contractors chosen? what arrangements are to be provided for emergency out-of-hours callouts? what commissions would the agent be entitled to receive from any contracts arising out of the services to you? A good agent should declare all such commissions to you. or call 0113 2302303 or 2302304 |
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