Management Company Advice

Smallhouses

I am an leaseholder flat owner and Co Director for a small block of flats and our management company was taken over a few months ago. We have been advised by letter but only now being requested to sign the new management agency agreement. Their performance has been generally very poor and only recently being reactive. Are myself and the other owner and Co Director obliged to sign their new agreement, do we have a choice? The companies reviews on trip advisor elsewhere are also very poor and I am worried about signing the new agreement.  Please can anyone offer any advice

DullGreyGuy

Smallhouses said:

I am an leaseholder flat owner and Co Director for a small block of flats and our management company was taken over a few months ago. We have been advised by letter but only now being requested to sign the new management agency agreement. Their performance has been generally very poor and only recently being reactive. Are myself and the other owner and Co Director obliged to sign their new agreement, do we have a choice? The companies reviews on trip advisor elsewhere are also very poor and I am worried about signing the new agreement.  Please can anyone offer any advice

What are you co-director of? 

El_Torro

I haven't owned many flats in my time but in my experience leaseholders will always moan about management companies, no matter how good or bad they are. So it doesn't surprise me that this one has bad reviews. 

I don't know what responsibilities / powers a Co Director has in this situation but generally speaking the Freeholder chooses the management company. Have you spoken to them about your concerns? 

Changing management company mid contract may not be easy, depending on what it says in the contract between the management company and the freeholder.

Have you read the agreement? If there are things you don't agree with in it now's the time to try to get it changed, before you sign it. 

eddddy

I'm guessing that you mean that...

• There is a company that owns the freehold of the building, or a Right to Manage company or similar

• That company is responsible for managing the building

• You are a director of that company

• That company hired a management company (or managing agent) to do the work on the company's behalf

And that management company (or managing agent) has been taken over, and the new owners want you to sign a new contract with them.

Assuming that's the case, the current contract is still valid, and you are not obliged to sign a new contract.



But, for example, the current contract might say that the management company can end the contract with 1 month's notice.

In that case, the new owners could say "We're giving you 1 month's that we're ending the contract. If you want us to keep managing the building, you'll have to sign our new contract terms. Otherwise we'll walk away when the 1 month notice period is up."