How to choose a managing agent.

20 years ago you would be forgiven for not knowing what a managing agent did or what the term block management even meant. Back then there were just a few managing agents, developers weren’t building as many leasehold properties as they are in most towns and cities today. Therefore the number of managing agents has also increased, some solely deal with block management others will also incorporate property lettings and sales into their business.

Although the industry is unregulated managing agents still have to abide with relevant laws and regulations and the good ones will be registered with the ombudsman service and probably will be members of an industry trade body ARMA, ARHM, LKP etc.

So how do you know go about either finding a new managing agent or ensuring that you are receiving not just value for money but also getting the service you and your building deserve?

Below are some points that residents should ask of any prospective or their current managing agent, our answers are found below the question in italics:

Experience: 

·         Are they registered with the ombudsman service?

Block Managers are registered with the Ombudsman Service

·         Are they registered with the ICO

As we handle resident information we are registered with the ICO

·         Are they a member of an industry trade body?

We are an accredited agent of the LKP who have their own internal complaints procedure

·         How many years’ experience in the industry do they have?

We have worked in the block management industry for 20 years

 

·         Are they managing any other developments like yours?

We currently are managing a variety of developments ranging from mixed tenure developments to purpose built apartment blocks.

·         Have they been brought before the LVT?

We have never been brought before the LVT and ensure that a thorough explanation is given to residents on any service charge cost.

Managing Agents costs:

·         Do they charge a percentage or per unit fee?

Our fee is based on what is more beneficial to the development and will either be based on a percentage of the total service charge demanded or a per property per year cost.

·         If a per unit fee, how much per unit per year?

Fees are based purely on the size of the development and range form £100-£140 per leasehold property.

 

·         Apart from the management fee will they make any other additional charges for managing your development?

The only time any additional charge will be made will be for extra postage monthly newsletter etc. or if residents decide on a one off project outside of the normal service charge budget where a one off payment will be made.

Hidden costs:

 

·         Do they earn commission for arranging buildings insurance?

NO – this can only increase resident’s service charge costs

 

·         Do they charge contractors any form of fee for awarding them work?

NO – this can only increase resident’s service charge costs

 

·         Do they have any association with contractors or an insurance provider?

NO – this can only increase resident’s service charge costs

 

·         Do they use client accounts?

No all managed development have their own designated bank accounts and also currently enjoy 2 years free banking.

·         Do they earn a fee from any energy supplier?

NO – this can only increase resident’s service charge costs

Terms and Conditions/Regulations:

·         How long is the notice period should you wish to terminate their services?

Our management agreement stipulates that we are employed on a month to month basis

 

·         Will they charge either a takeover or handover fee?

We do not charge wither a takeover or handover fee

 

·         Do they abide by the RICS service charge code?

We abide strictly with the RICS service charge code as well as all other known industry regulations

 

·         What measures do they have in place for Health & Safety?

All management of Health & Safety is included within our management fee, we are both competent and NEBOSH qualified to manage this on the resident’s behalf.