Running your own flat management company

ctm_2

You may remember my post a week or so ago regarding the general unhappiness with the amount it is costing us to employ a managing agent. It is highly likely that when some new directors have been voted in (i'm the only one at present) we will sack the management company and run things ourselves.

I've looked at loads of stuff, and got hold of the snappily titled 'Running a flat management company' book from the library. But none of it really answers the questions about reality. They all seem to cover the setting up etc, which I don't need to do, as there is already an existing managment company with each resident holding 1 share etc.

If anyone here is involved in running their own management company, could you please spare a few minutes to answer these few questions for me? Thanks :beer:

• How much work does it actually take? This block has 22 flats. how much time would it realistically take to manage?
• What roles do the directors have. We will probably have three directors, one being the co secretary. One of the others will probably deal mostly with the money. Is this a sensible way of doing it?
• Money - The only thing that really concerns me is if people don't want to pay the service charge, or any other costs. How would I go about getting money from people who don't pay? Is it as simple as going through the small claims court?

bristol_pilot

I used to be a Management Co Secretary until a moved a couple of years ago.

You need to collect the money, bank it, pay the company house fees, submit accounts, obtain buildings insurance, engage and pay tradesmen to sort repairs to the common areas, deal with correspondence connected with people who buy and sell their flats and hold an annual general meeting. No more than a couple of days work a year in total.

Three directors is fair enough, we had eight - one for each flat in the block. However, the Company Secretary did everything listed above. We voted to pay the sectrtary an honorarium of £70 per year to cover postage, phone calls etc.

I never had a problem with people not paying their ground rent / service charge, so can't help with that one.

matmad

I just wanted to jump in and and give you my experiences of running our own management company. I've got the same book as you, and it is a useful reference tool.

I have to say that the whole thing takes up a lot of my time and has turned into a bit of a monster, but my view is that we save a load of money and are far more pro-active (well, I am), than a management company would be.

We have had people not pay service charge in the past, but that was probably because we were not organised enough at the time to ask for it. A solicitor's letter was enough for the person to make a payment plan and stick to it, and since then I send out monthly invoices.

The short thread below relates to your questions. Hope this is of some help.

http://forums.moneysavingexpert.com/showthread.html?p=4135464#post4135464

ctm_2

Thanks for your answers!

ctm_2

I thought I would dredge up this old thread, rather than making a new post!

I just have one quick question re the directors/secretary of the management company.

We currently have the Co Secretary (who is someone at the manging agents) and 3 directors (who are residents).

If we were to sack the managing agents and run it ourselves, could one of the directors also be the Co Secretary, or can one person not be both?

matmad

Hi,

Yes, the company secretary can also be one of the directors. Page 60 of "Running a Flat Management Company" by Nigel G Cox.

Our company secretary is actually our solicitor, but he only really files the Annual Report to Companies House, and issues any new share certificates if a flat is sold. I do all the day to day admin etc myself as I am on site as a flatowner and it works out far more practical.

If you are thinking of going ahead and running it yourselves, you would be doing yourself a favour in buying this book and keeping it to hand for reference.

Hope this helps!

ctm_2

Thanks!

I've got that book, and must have missed that bit.

sah7

I am trying to get hold of a copy of this Nigel Cox book, but it is unavailable on Amazon and the publishers (Jordans) say it is out of print, despite the latest edition being only 3 years old (4th edition released 2004)! Also no joy on ebay. Do any of you have a spare copy I can buy, or can point me anywhere else I can buy it? Many thanks

ctm_2

sah7 wrote: »

I am trying to get hold of a copy of this Nigel Cox book, but it is unavailable on Amazon and the publishers (Jordans) say it is out of print, despite the latest edition being only 3 years old (4th edition released 2004)! Also no joy on ebay. Do any of you have a spare copy I can buy, or can point me anywhere else I can buy it? Many thanks

I borrowed both books from the library.

Nagaho

i bought/leased an apt in a terrace block, the vendor setup a management company, and had approached a managing agent company to oversea the developement. After i signed the lease, i discovered the agents had not officially taken over the running of the developement as the vendor/lessor had to do work in communal areas before they would step in. I paid £200 service charge for first year, the managing agent company has gone bust. the vendors solicitor can't get a responce from him. and i cant get anyone to help sort out the communal area's. i had to take out my own building insurance for my own apt only.q.Should my solicitor have caught all this before the sale went through?q. do i need the vendor in to setup new management company?oh yeah management company is getting struck off in april 08

martinman3

The most important bit first, if it owns the freehold of the building

*** Do not allow the Management Company to be struck off ***

if it owns the freehold it will revert to the Crown and it will cost you to get it back.

If your name is on the freehold title together with other leaseholders then it does not own the freehold you do jointly.
If you do not know for certain if it does or not then use the Land Registry website http://www.landregisteronline.gov.uk/lro/servlet/MultipleResultsServlet?postcode=&titleNumber=&houseNumber=&flatNumber=&streetName=&town=&external=&x=7&y=9
to get info of the owner of the freehold title, it costs £3.

The vendor must have been a director of this company possibly the only director, the company secretary could be anyone that he appointed. You can find this out from the Companies House website http://www.companieshouse.gov.uk/WebCHeck/findinfopage/
by purchasing the last Accounts and Annual Return, £1 each. The return will show the directors, secretary, shareholders, registered office etc.

If you need to you could, as a shareholder, call for an Extraordinary General Meeting of the shareholders, then propose yourself as a Director, appoint a Secretary, ask all shareholders to donate money towards the cost of a solicitor to stop the striking off, cost of accountant to file the return, prepare accounts etc.

If the freehold is at risk you must act quickly.