How to change from one property management company to another

fishing_mad

Hi,
I would be very grateful if someone could offer any advice on how to go about changing from one property management company to another. We have been told that a mandate is required from at least 50% of shareholders in our development, although there is nothing stipulated in writing.


Thank you in advance.

Racky_Roo

Firstly you’ll need to check the lease and see what % of owners need to agree to switch. If you have that % or more on board then you’ll need to check the contract with your existing management company on what notice period they require. There’s often an exit fee to pay for them to transfer funds etc.

Personally I would have a new company lined up so there is a bank account ready for the funds to go into (unless you have a registered company and the existing company have access to your account)

I found our new company by asking people in flats near me which looked well maintained if they would recommend their company. Then I had to find one willing to take on new business. The good ones will generally only take you if you have a reasonable sinkage fund and residents who take an active interest in the building

NeilCr

OP.

Do you and your fellow residents own the feeehold of the estate?

Beyond that I agree with Racky Roo. Definitely get your new company lined up before giving notice to the existing company. We had to give 6 months notice.

I don't know how big your development is. We went for someone far more local than the outgoing company because distance was one of our issues. We interviewed three companies - two small and very local - one medium and based about half an hour away. We picked the medium one because they had more resources which suited us (69 properties) but if you are small when that may not be a biggie for you.

Recommendation is good - two were recommended - the third we knew about. I quite liked having a competition as it gave us a chance to assess what was out there!

Just_Di

Under the Commonhold and Leasehold Reform Act 2002 a Section 20 consultation is required for 'qualifying long term agreements' .

This means Leasholders must be consulted (a lengthy process) before contracts over 12 months are entered into, or if any one leaseholder will have to contribute a £100 or more in the 12 months.

The consultation invites Leaseholders to nominate potential 'candidates' for the job.

Was this process carried out properly when the current Managing Agents were appointment or were they foisted on you by the Freeholder?

I assume you want a change of Managing Agent because things aren't working out, so what is the problem and is there a cure if you're stuck with them?

Di