Question about management companies

jibber4568

Hi,

I was wondering if someone may know about a leaseholders rights in relation to management companies, or point me in the right direction to obtain this info.

I'm trying to determine what rights a management company has to spend money and charge it as an expense to all leaseholders.

When things are damaged and repairs/improvements are required I completely understand but our company keep doing things that none of us want or need and charging it to us.

For example they have just installed a big blue notice board in the communal hallway so they can display a cleaning sheet. This was purchased and installed at a cost of £190 and at no point was any leaseholder asked if it was something we wanted or needed.

Basically do they have a right to do this and I should I just suck it up or can I refuse to pay for something that none of us actually want.

Also another small enquiry does anyone know if its a legal requirement for the public liability insurance to be on display to all leaseholders or not?

Thanks.

AdrianC

jibber4568 wrote: »

I'm trying to determine what rights a management company has to spend money and charge it as an expense to all leaseholders.

It depends entirely on their contract with the freeholder, and on your lease.

For example they have just installed a big blue notice board in the communal hallway so they can display a cleaning sheet. This was purchased and installed at a cost of £190 and at no point was any leaseholder asked if it was something we wanted or needed.

It's probably a blanket policy over all their sites, to reduce the risk of complaints about cleaning not being done.

Also another small enquiry does anyone know if its a legal requirement for the public liability insurance to be on display to all leaseholders or not?

I presume it isn't on display, and you think it should be? I don't believe it is - I suspect you're getting confused with the legal requirement for employer's liability insurance in places of work.

But look on the bright side. At least there's a noticeboard they can put it on now...

jibber4568

Thanks for that.

Well know that's one of the other excuses for the notice board, they are saying that its a legal requirement for them to display the public liability insurance.

Just frustrating that we've been fine without all this for the past few years and now all of sudden they seem to think we have to have it. The communal areas are so small it's just so irrelevant.

AdrianC

jibber4568 wrote: »

Well know that's one of the other excuses for the notice board, they are saying that its a legal requirement for them to display the public liability insurance.

Whether it is or not - and it wouldn't surprise me - it's certainly a good idea and, again, quite probably their blanket policy across all their managed sites.

eddddy

jibber4568 wrote: »

Basically do they have a right to do this and I should I just suck it up or can I refuse to pay for something that none of us actually want.

It depends what it says in your lease.

If you want, you can ask the freeholder/management co which clause(s) they are relying on in the lease to charge you for the notice board etc. Then you can read those clauses and see if you agree with their interpretation.


On a more general level...

...if you think any service charge is unreasonable, you can challenge it through a tribunal.
See: https://www.gov.uk/leasehold-property/service-charges-and-other-expenses


Or alternatively...

... there are ways that leaseholders can get the management company changed.
See: https://www.gov.uk/leasehold-property/right-to-manage-and-management-disputes