how to change residential management company?

hyposmurf

Our current residential management company, manage such areas as car parks and shared land between houses etc.they have provided poor standard of work and in the last year doubled our fee.they screwed up on a number of issues such as incorrect billing not knowing what they maintain etc.the last bill we received has a cost of £203 for postage costs, weve not been billed in previous years for this.they also seem to be adding works that none of us have agreed to.their costs theyre budgeting for seem to be excessive to say the least.im looking at a bill just under £400.I live in a house and the costs I pay for relate ti an electric gate, small number of bushes and a floodlight.
We have directors who are residents on the estate.how can we get a new company In to replace our current? Can we go out to tender and can we decide what areas the management company are responsible for?

PJD

Glad to see that this question has been asked... I am in the same boat... - myself, and one other resident, are directors... there are 32 flats in our block. We'd like to change... or even entertain the possibility of managing it ourselves.

Richard_Webster

You need to be clear first.

From what you have said you and others are members of/own shares in a management company. That company has employed another company as a managing agent.

You will have to look at what terms were agreed between your company and the agent. Subject to any terms agreed as to how long their contract is, you should be able to call an AGM of your company and appoint different agents or organise everything yourselves without employing a separate agent.

I would be wary of doing it yourselves because unless there is someone living there who is prepared to spend may be a day a week on admin and deal with complaints from some residents who are bound to get steamed up about something at some point, you are usually better with a managing agent, who will be less personally involved. The downside of course, is that you have to pay them for their services.

However you can closely question potential agents and contact other groups of residents to ask about their experiences with them, before you appoint one.

hyposmurf

Richard_Webster wrote: »

You need to be clear first.

From what you have said you and others are members of/own shares in a management company. That company has employed another company as a managing agent.

You will have to look at what terms were agreed between your company and the agent. Subject to any terms agreed as to how long their contract is, you should be able to call an AGM of your company and appoint different agents or organise everything yourselves without employing a separate agent.

I would be wary of doing it yourselves because unless there is someone living there who is prepared to spend may be a day a week on admin and deal with complaints from some residents who are bound to get steamed up about something at some point, you are usually better with a managing agent, who will be less personally involved. The downside of course, is that you have to pay them for their services.

However you can closely question potential agents and contact other groups of residents to ask about their experiences with them, before you appoint one.

Thanks for the response.
We have directors elected via the residents to oversee the annual account.the management company were put in place via the housing developer for the housing estate.this developer will be due to leave the site within the next year.
Are you saying that there is likely to be an annual contract in place that the elected directors each year are able to go out to tender for the contract? I take it that is seperate from what is covered in our deeds?
How easy is it to change managing company usually? I take it we wouldnt need a solicitor involved? Im sure our existing management company is just taking us for a ride by hiking prices and billing us for new things each year.they probably assume their contract is secure as the residents dont know enough about it to change.
We wouldnt take all the work on ourselves just rationalise on what is required.would still employ another managing agent.
Is there an organisation set up to help us through the transfer to another management company?

gfplux

Have you spoken about this issue with one or more of the Directors. Frankly this is your starting point.
I would assume there is a contract in place between the Residents Association and the management Company and the first step is to find out how long this contract is for.
When you have had the chat with a Director come back here and maybe we can give you more information.
Changing management companys is a simple matter not needing a solicitor but is something the Directors would have to agree to do.

Pete9501

Seen 4 managing agents in 10 years. Suggest you approach several local ones including the current MA and tell them the tender us up for negotiation. Allow them to pitch to the Directors for 30 minutes on what they will do as a new MA.

You don't want to do this annually as it takes a while to build a working relationship with the MA. We had monthly meetings of the board and the MA who fulfilled the company Secretary role - accounts and returns to Companies House etc.

Non are perfect and they will be managing more than one group of properties so you can't have 100% of their attention all the time, but worth working with a half decent MA.

hyposmurf

The directors are aware of the situation and that residents arent happy and mentioning changing MA.Currently they are going back to the MA as it appears the latest invoice was rushed out before they had given it approval and points they had raised werent included.Also the cost was well above what they had seen previously.I guess they are currently going back through it now with the MA and will come back to them.
I realise no MA will be perfect but this particular one is taking the biscuit. doubling charges, chargingg us for something then weeks later withdrawing the charge.They really seem clueless.Yet to find out about the contract renewal date, will await response from directors first.