Managing your property in Surrey and London: Should you hire a managing agent or self-manage?
Whether you are looking for a Surrey or London managing agent or a managing agent based much further afield, this guide will help you understand why choosing the right managing agent is so important.
Residential block management can be a complex and time-consuming process, especially if you have the wrong managing agent in charge.
But it doesn’t have to be.
If you work with a reputable, experienced and professional managing agent, the day-to-day management of your development should be faultless and take all the stress away.
What does a managing agent do?
The managing agent will handle all management issues that relate to those common parts (for example, the gardens, the hallways, the roof, the parking areas and so on).
The managing agent will also set a service charge budget (usually for a 12-month period) which will set out the costs it expects to incur in looking after those shared communal areas and arranging any necessary maintenance, insurance, security and so on. Each owner will then pay a contribution towards the cost of those services.
Do you need a property managing agent or can we self-manage?
Yes, if you live in a very small block of flats or on a small, shared estate then there is no reason why the owners cannot manage themselves.
This comes with a word of caution, however.
There are important restrictions, rules and requirements to deal with, when looking after shared space, such as ensuring appropriate insurance is in place, keeping all owners’ service charge funds secure and in the correct type of bank account, complying with all health and safety requirements and dealing with solicitor enquiries on any sale.
If you decide to self-manage, you must ensure you have the time and knowledge to be able to do that properly.
Advantages of self-managed properties: Why taking control could be your best move, including:
- Cost savings: By self-managing, you can save money on management fees that would otherwise be paid to a property managing agent.
- Greater control: With self-management, you have more control over the day-to-day operations of your property, such as tenant selection and maintenance.
- Flexibility: You can set your own schedule for property visits and maintenance, which can be beneficial if you have other commitments or obligations.
- Better communication: As the owner and manager of the property, you have direct communication with tenants and can quickly address any concerns or issues that arise.
- Increased knowledge and experience: By self-managing, you gain knowledge and experience in the property management field, which can be useful if you have other properties to manage in the future.
It's important to note, however, that self-managing also comes with some potential drawbacks, such as the time and effort required to manage the property, the need for expertise in legal and financial matters, and the potential for increased liability if something goes wrong.
What are the benefits of using a property managing agent?
There are many benefits of appointing an experienced and ethical managing agent:
- The first, is convenience.
- Secondly, the managing agent is there to take care of all day-to-day tasks associated with the running of the development and dedicates it’s time to doing so.
- Lastly, a good managing agent will have approved contractors on its key contact list so that when a maintenance issue occurs, there is someone trusted and reliable to quickly resolve the problem, so you do not have to spend hours comparing quotes and scrolling through check-a-trade to try to find someone!
Can appointing a property managing agent save you money?
Appointing a managing agent will also likely save you money in the long run. Most managing agents can source the most competitive quotes from insurers, energy suppliers, contractors and other third-party suppliers as they will be given trade rates and discounts.
The property managers should also be experienced in all block management matters, so will know right away if a quote is appropriate for the level of the task involved.
It is their job to ensure residents are not being ripped off.
Can your property managing agent help with neighbour disputes?
If and when a dispute between neighbours arises, it is a lot less hostile if there is a third party dealing with that dispute, who is impartial and can help settle any issue promptly and objectively. We have seen many neighbourly relationships breakdown over disputes which a third party could easily resolve.
You can read more on the topic of neighbour disputes in our article how to get rid of noisy neighbours.
If you are looking for more information on changing managing agents, what managing agents do, or whether you need a managing agent at your property, please do get in contact and we will be happy to discuss the options with you, on a no obligation basis.
How to change your property management agent
If you are not satisfied with the service provided by your current managing agent, don’t despair, it can be pretty straightforward to switch agents.
How do you appoint a new managing agent?
If there is already a management company set up for your development (this is a company specifically set up for the residents to be a part of and which will usually be a party to your lease or referred to on your service charge demand), the process is quite simple.
This is because, it is the management company that is responsible for choosing the managing agent that manages its block/development, day to day.
Management companies are often incorporated at the development stage so that there is something for leaseholders to be a part of and to ensure the residents on the ground actually have a say in the management of their homes.
What to do if there is a managing agent already in place
Where a management company is already in place, usually, every leaseholder is a member of that company and those members elect resident directors to make decisions on behalf of the rest of the leaseholders, for the benefit of the development.
Those resident directors should then report back to the other leaseholders at the annual general meeting (or more often, if major works or decisions are being made). The leaseholders can then vote on any pending decisions and choose whether or not to keep the same resident directors in place.
What are the steps to change a property managing agent?
It is the resident directors of the management company that have the authority to appoint and terminate any managing agent’s contract and who will ultimately be responsible for changing managing agent (although, some consultation with the other leaseholders is often carried out).
If you are unsure who the directors are, you can find these listed at Companies House, by simply searching the name of your management company.
You should then discuss any concerns you have with the directors so that they can consider if changing managing agent is a good approach.
How do I get rid of a property management agent in the UK?
In the UK, usually, a managing agent’s contract will be for a period of 12 months only (there are restrictions in place so that unscrupulous agents do not tie you in for longer) and will then continue on a rolling basis.
The industry guidelines are that the notice period should be no more than 3-months, so once a new agent has been chosen, the handover is quite speedy. If there is not already a residents management company in place, there are several other options available for changing managing agent.
Can a freeholder change the property managing agent?
If your freeholder is in control of appointing the agent, you should approach the freeholder to set out your reasons as to why the current agent is not providing a satisfactory service and suggest some alternatives. If your freeholder is not open to changing managing agent, you can apply to the FTT (First Tier Tribunal), to request a new manager be appointed.
Do keep in mind however, that you do have to prove a very poor standard of management by the existing agent in order for a claim to be successful.
You could purchase the freehold in your building – usually called collective enfranchisement, which is when a group of leaseholders get together to make the purchase. At least half of the owners must be on board in order for an enfranchisement claim to be successful.
This can be a complex process and you must seek legal and valuation advice before proceeding, but it can also be a positive move and places you firmly in control of your development.
Exercising a right to manage claim to change a property managing agent
You could exercise a ‘Right to Manage’ claim, which, if successful, hands over all management responsibilities to the Right to Manage Company. For further details as to what is involved in this process, please see our Right to Manage article.
Talk to us, we’re expert property managing agents
Whatever your situation, we are always happy to have a no-obligation discussion to see if we can help you with changing managing agents.
Learn more about our residential property management services.
