Management Company for Private Road

Curious_Freeholder

Hello! We need to set up a management company for 6 houses on a private road. The houses were built a few years ago and a company was never set up.

What do we need to do to get this up and running? 

Is a company limited by shares or guarantee better? 

Is Public Liability Insurance a must? 

What kind of companies maintain these kind of management co's for you? 

If we set up a bank account in the company's name, presumably the balances will need to be reflected in the financial accounts year on year filed at companies house?

Thank you!! 

DE_612183

Limited by shares I would suspect is better.

Just set up a company with Companies House and a bank account.

You should probably maintain the company between yourselves, although perhaps an accountant.

Your turnover I would presume is quite small, and I guess you won't make any profit.

How do you intend to operate - estimate the annual figure for costs of maintenance, divide by 6 then get everyone to pay into the pot and everything should be ok?

You probably need to draw up a list of items that will be covered by the yearly charge, and also how addition costs are managed.

thegreenone

Ask every householder to look at their deeds - do they stop at their front gates or go to the middle of the road?  It's important when looking for Public Liability Insurance.  If the owners land goes to the middle, then their household insurance is liable for any accident 'on their patch' otherwise it needs to be for the whole road.  We have this issue in our private road with some thinking they don't have to pay their fees not realising the 'middle of the road' does not apply here.

My hubby is on the committee and there is a meeting tomorrow night followed by an open AGM for any resident to attend.  As there are so few houses, you would need a representative from each house on the committee. Chair or joint chair, Treasurer/Secretary or keep it simple.  It's not a huge amount of work: Fee reminders, updates if you are responsible for keeping the road tidy, paying road insurance and welcoming any new owners.  We have a Whatsapp group for the Committee and another for the residents, although not all on there.

newsgroupmonkey_

Out of interest, what happens if you do nothing?
Our deeds say we are only responsible up to the end of our drive. As we've found, no-one wants to take ownership for the road.

Cady123

May I ask how you got on setting up the management company please, we have just discovered that before we are able to sell our house we need to have a management company in place.  10
houses on the road, each house owns the road to the front of their house. Not sure where to begin