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Management company Fees

Hello I am a recently appointed director of a block of leasehold purpose built flats and received a renewal contract from the management company . Their management fees have increased and now it’s c9k for the year (42 leasehold units , south london )
I wanted to know if that’s reasonable ?
My first time in this position so wanted to get some advice from fellow directors .
thanks

Comments

  • That's not bad. The important thing is that you're a director and can scrutinise spending, quotes and specifications for works done. And you're clearly interested in getting good value and therefore you'll be a really good director.

    With 42 units you should have lots of experience to draw on, try to find out which of your neighbours are architects, builders, engineers, surveyors etc. And try to involve them in reviewing what is going on.

    Also try to be open minded and try to learn from the management company. Don't let it become us versus them. There's a lot of law and regulations that affect them that don't affect your typical home owner. It can appear like a nice money making scheme but generally they're not bad people but have to deal with a lot of threats and harassment from a minority to leaseholders 


  • eddddy
    eddddy Posts: 16,124
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    edited 24 January at 10:46PM
    poli123 said:

    I wanted to know if that’s reasonable ?


    It's sensible to have evidence that it's reasonable - because, depending on the set-up, leaseholders can potentially take you to tribunal, if you charge them an unreasonable management fee.

    Maybe a sensible approach is to get competitive quotes from other Management Companies.

  • NameUnavailable
    NameUnavailable Posts: 2,779
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    9K versus how much last year?

    £214 per flat for management seems very reasonable however.
  • daveyjp
    daveyjp Posts: 12,385
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    What percentage of the total service charge is £9k?
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