Running your own flat management company

chris_m

Nagaho wrote: »

]Up shot is we still need work done to the communal areas to bring it up to a satisfactory condition i.e walk ways and fire escapes. However noone wants to spend the money on the work that needs done.
I own the ground floor flat so the fire escape is off no concern to me, I have spent money on some of the walk ways (mainly to rear garden which I have fenced off for myself).
At least I am in a position to sell now if I have too, as we have still got the original mangamnet company in place, which I own a share in, and hold a directorship for.

I would be extremely careful saying things like "the fire escape is of no concern to me" - if a fire occurred and people were hurt or worse, as a company director it is perfectly possible that you could be held partially liable if the lack of a fire escape (about which you knew) proved to be to blame for those injuries or worse.

If the fire escape is a legal requirement you cannot wash your hands of it, and neither can the other directors, just because no-one wants to spend money on it.

chris_m

Wings wrote: »

I own a leaseholder of a flat, the same within a block of three other leasehold flats, each leaseholder being a Director of a Limited Company. We employ a Management Company that manages the accounts, maintenance of the communal and exterior area of the block.

I also am both a leaseholder and director in a complex of 36 flats. All the leaseholders jointly form the management company, which is also the freeholder.
We are in the fortunate position of employing a damned good managing agent who does all the necessary work for us - collecting management fees & ground rent, chasing late payments, organising and paying for work required, insurance, preparing accounts and getting them audited, etc., etc.
Very little work is required of us as directors other than as a check that he is still doing a good job and as a legal requirement that the company has some directors. We have an AGM each year to which all shareholders are invited and occasionally have director's meetings if something crops up that cannot be left to the agent alone.

Owain_Moneysaver

Money money money. If you have the money, you can do almost anything. If you don't have the money, you can't do anything and you will spend all your time chasing it.

Invoicing leaseholders is a waste of time. Get every leaseholder to make out a monthly standing order to the Mgmnt Co for x amount and make sure that the bank transfer shows the flat number. That will reduce your monthly accounting by about nine-tenths. You will still have to allow about 6 months at every change of leaseholder to find them, chase them up and get the to complete the SO form.

That should cover most recurring expenses.

Cleaners, gardeners etc for common spaces - appoint these annually at a fixed price for the next 12 months. You need someone to check the work is done and make the payment.

Some banks have online banking for clubs/societies whereby one office bearer can set up the payment but it takes another office bearer to log in with their own password to authorise the payment. This is easier than chasing round the office bearers trying to find who's got a cheque that needs signing.

The point about personal liability for health and safety / fire precautions is a good one.

Nagaho

chris_m wrote: »

I would be extremely careful saying things like "the fire escape is of no concern to me" - if a fire occurred and people were hurt or worse, as a company director it is perfectly possible that you could be held partially liable if the lack of a fire escape (about which you knew) proved to be to blame for those injuries or worse.

If the fire escape is a legal requirement you cannot wash your hands of it, and neither can the other directors, just because no-one wants to spend money on it.

what I meant was that I have done everything humanly possible to facilatate everyone, to get the works done (even thou the fire escape is not excessed through my apartment), so if the ppl who do need it arent bothered with it, then "why should I lose sleep over it".

This work has all been outstanding since before I purchased the apartment and there is numerous documention between solicotors regarding it, I have letters from the vendors solicitors telling mine that the vendor is in breech of contract for not having the works done as he was meant to have it completed prior to purchase.
I will look into my obligations as director regarding this and make sure I have fullfilled my obligations (which I feel I have done).

[Deleted User]

let me just say that it takes a huge amount of time because of the few people who moan and moan but do nothing to help. So much so that we sold up and moved to freehold. Never again

My dh spent 18 hours a day trying to keep people happy

neilcole

Running the company part is easy.
Getting peoples opinion is hard.
They will tell you when you are wrong only after the fact.
They will never tell you before the fact.

Wingers mainly.

I have been doing it for four years now. Initially I agreed to sort out the arrears of the people not paying their service charge, and sort out a knackered old communal sewage pumping system.

I took over as Co Secretary and became a director. The other directors (4) will generally tell me they agree with me and will back me up if needed. Other than that no one gives a damn. Out of 41 properties we usually get about 4 to the AGM plus most of the Directors!
It is a thankless task but also perversely rewarding.
If you are reasonably literate and numerate, own a computer and can type a letter then you can do this.
Just don't expect to get much thanks!

KiKi

neilcole wrote: »

Running the company part is easy.
Getting peoples opinion is hard.
They will tell you when you are wrong only after the fact.
They will never tell you before the fact.

Wingers mainly.

I have been doing it for four years now. Initially I agreed to sort out the arrears of the people not paying their service charge, and sort out a knackered old communal sewage pumping system.

I took over as Co Secretary and became a director. The other directors (4) will generally tell me they agree with me and will back me up if needed. Other than that no one gives a damn. Out of 41 properties we usually get about 4 to the AGM plus most of the Directors!
It is a thankless task but also perversely rewarding.
If you are reasonably literate and numerate, own a computer and can type a letter then you can do this.
Just don't expect to get much thanks!

The questions in the OP are 5 years old...

maricota

A new question in this thread...

How do you divide your admin and maintenance costs?

We have a freehold which is split almost equally, but the flats differ hugely in size and value. There is disagreement at the moment about how we should go forward - should basic costs like accountants and insurance be split by share of the freehold, or by flat value? Ditto for maintenance. I'm of the opinion that the first should be by share, the second by value, but I really want to know what the norm is rather than just giving an opinion!

Any advice, or pointers to websites/books really appreciated!
Thanks, Mari..

Fire_Fox

Welcome! Read each long lease, everything related to the maintenance and other costs should be specified usually as a percentage of the annual total. Costs are paid by the leaseholders not by the freeholders (yes I understand you are wearing two hats) so the amount of the freehold you own is irrelevant.

Also read this website that has already been linked to in the thread and your head lease, Make sure ALL the other freeholders read both, it will save you loads of time and loads of debate. http://www.lease-advice.org/publications/

purt

Can I hijack this thread to ask a related question? I'm in the process of buying a leasehold flat and have found out that the other leaseholders have a right to manage agreement in place. There are seven flats in total and only four of those have a share in the management company that was set up. The flat I'm buying doesn't have a share in the company.

My question is, if I buy the flat/leasehold, can I buy into the arrangement and do I have any entitlement to do so? Also, are there any actual benefits of being part of the arrangement beyond having a say in how the property is managed?