Management Company Fees in Future Years

sh856531

Hi all,

We are currently looking to purchase a new build detached house, freehold.

The estate will be managed in the future by a fairly poorly regarded management company called RMG. Most of the complaints relating to them is generally poor customer service and taking too long to resolve issues within shared buildings.

To be honest, I don't so much care about that as being in a detached house I would expect to have to call them rarely if ever. My only concern are their ability to unilaterally increase their prices to any level they see fit.

I've read the TP1 document and purchase contract and it all looks fairly standard but one sided in favour of the management company being able to set prices to whatever they want in the future as long as this is "reasonable".

Can anyone advise on whether there are any specific protections in law that would prevent a cow boy operator from say quadrupling prices? If they were to do this on dubious grounds do the occupants of the estate have any recourse?

Thanks in advance

AnotherJoe

sh856531 wrote: »

Can anyone advise on whether there are any specific protections in law that would prevent a cow boy operator from say quadrupling prices? If they were to do this on dubious grounds do the occupants of the estate have any recourse?

A /QUOTE]
The law. Each time. Probably as expensive as paying up.

Id walk.

sh856531

AnotherJoe wrote: »

The law. Each time. Probably as expensive as paying up.

Id walk.

Is there a specific law you have in mind that protects occupiers?

I could walk, but based on what I've seen nearly all of the properties I'd like to buy are likely to have their own set of issues. You just need to pick your poison it seems

Simon

mysterymurdoch

Best thing about moving out of a flat was no more management company engagement. I'd never move somewhere with communal charges again.

They can go up huge amounts year on year. If they can show contractor invoices going up 15% they will pass this on to you. Etc.

sh856531

mysterymurdoch wrote: »

Best thing about moving out of a flat was no more management company engagement. I'd never move somewhere with communal charges again.

They can go up huge amounts year on year. If they can show contractor invoices going up 15% they will pass this on to you. Etc.

Yeah - I'm definitely not a fan of them either particularly with flats. I'm a little more relaxed about the new estate we are looking at because its a freehold detached house with very little that is "shared". The total fee currently is around £15pm, which compares favourably to the £82pm I was paying in my last flat.

I'd be lying if I said the idea that their price increases seem to be unregulated doesn't give me a slight pause. This seems to be the norm on new build estates as far as I can tell

Thanks

Lord_Baltimore

You're prepared to buy freehold and pay for the services of a pre-determined management company? I wouldn't.

NeilCr

Lord_Baltimore wrote: »

You're prepared to buy freehold and pay for the services of a pre-determined management company? I wouldn't.

I would - and did. And we took on the freehold (n two occasions for me - different properties) - horses for courses and all that

But back to the OP

This may help

https://rounceandevans.co.uk/cms/resources/freehold-houses-on-private-estates.pdf

Have you any common areas/private roads etc that may bump up the costs?

AnotherJoe

sh856531 wrote: »

Is there a specific law you have in mind that protects occupiers?

I could walk, but based on what I've seen nearly all of the properties I'd like to buy are likely to have their own set of issues. You just need to pick your poison it seems

Simon

I probably didn't explain that very well.
What I meant was, every time you thought a fee was "unreasonable" your oniy recourse would be to go to law. Each and every time.

[Deleted User]

I have learnt that managing agents dont have to be licensed and there is very little recourse to what they want to charge.

Who is to determin what is reasonable and do you really want to end up in a tribunal everytime you are presented with a charge you don't agree with.

Dont look at it just in terms of what ' space' is around your detached house what if they want to canvas opnion on the estate for some purpose / project the admin fees for arranging that could be horrendous.

You move in and suddenly yearly 'environmental, asphestos, health and safety, road , curbs, land contamination studies and repoorts all need to be done.

These are money making operations and they will think of anything to squeeze money from people.

I's also walk away, if I'm buying a house I want control over the costs and if I want to sell I dont want future buyers worrying about likely increased costs of managing agents.

DoaM

Who engaged the contract with RMG?

Surely there's a mechanism for freeholders to terminate RMG's contract and appoint another agent?

Or are the common areas owned by someone else? (The developer?)