£100/month penalty from property management company

Friedbagel

I own a small studio flat that I have owned for 6 years with no problems and a happy tenant. Yet now am being forced by the managing agents to replace my front door and a laundry room door for £2,818.80 with their contractor. This is as part of a planned replacement of the fire doors with their contractor for the whole of the block. 

I was given an option to have this done myself as I have found a cheaper local contractor. However this local contractor cant do the work in time for their August 20th deadline.

As a result the managing agents stated ‘Failure to do so will result in a £100 penalty added to your service charge account, with £100 added each month thereafter until the required works are completed and proof provided.’

The full letter is in the post below.

Can the management company impose penalties like this and what would you all advise me to do?

Friedbagel

Action Required: Flat Front Door Fire Compliance 

We acknowledge receipt of your email indicating that you no longer wish to proceed with the replacement of the doors to Flat 1 and its associated laundry room via the group contractor scheme (Option A). 

While we understand that this is a significant cost, we must reiterate that these works are a legal requirement to bring all flat entrance doors at XXXX into full compliance with fire safety legislation.

 

XXXX Ltd has gone to considerable effort to ensure cost efficiency and compliance by obtaining and evaluating six quotes from vetted contractors. XXXX was selected based on competitive pricing, high service standards, and the ability to offer a 10% group discount. A benefit only possible due to the bulk nature of this arrangement. As already stated in our previous communication, XXXX provided the lowest quote, it is approximately 18% lower than the next lowest quote and 45% lower than the most expensive received. 

That said, if you decide to, we will allow you to withdraw from Option A and instead proceed via Option B, whereby you arrange the necessary fire-compliant works independently at your own cost. 

If you now choose Option B, the following conditions apply: 

● You must confirm this change in writing by 1 August 2025. 

● You must complete the works and provide valid fire compliance certification to XXXX Ltd by 20 August 2025. 

Failure to do so will result in a £100 penalty added to your service charge account, with £100 added each month thereafter until the required works are completed and proof provided. 

Flat X Sale 

Please also note that we are aware Flat X is currently listed for sale. If the fire door works are not completed with option A or B, this non-compliance will be noted in any LPE1 or legal pack issued to the buyer, and may impact your sale process.We strongly advise you to act now, either by proceeding with the already booked works 

under Option A or notifying us in writing of your intention to proceed under Option B by the deadline stated above. 

Please do not contact the contractor directly. All coordination and questions must be 

addressed to XXXX Ltd as managing agent and freeholder. 

If you have any further questions, we are happy to assist. 

Yours sincerely, 

The Board of Directors

bouicca21

What does your lease say?

grumpy_codger

Friedbagel said:

... I have found a cheaper local contractor. However this local contractor cant do the work in time for their August 20th deadline....

There are many national companies that can do this relatively cheap. Use google.

Bigphil1474

Ask the contractor if they can do it sooner if you bung them a few more £ so that you are still ahead of the agents?

saajan_12

Are you wanting to challenge whether they can require the works to be done or the £100 penalty? 

The practical option may be to find a contractor who can do it sooner, or even if not, an extra £100 on their cost is likely still below the management agents' £2800.. I'd think half that! Also a 10% bulk discount is also pretty poor from this contractor , if they get multiple jobs with just one set of negotiation, in the same location so all the unpaid time before / after doing the works is gone. 

Then you can dispute the fee if/when they apply it.. check your lease agreement regarding this.. if silent, they cant just arbitrarily decide to put penalties on you, they have to reflect actual costs. 

theartfullodger

Fire prevention works are surely higher priority than anything else.

As a landlord I wouldn't want to be at a fatality enquiry where I had to explain why I'd avoided or delayed matters...


Other views are available 

Jumblebumble

Friedbagel said:

Action Required: Flat Front Door Fire Compliance 

We acknowledge receipt of your email indicating that you no longer wish to proceed with the replacement of the doors to Flat 1 and its associated laundry room via the group contractor scheme (Option A). 

While we understand that this is a significant cost, we must reiterate that these works are a legal requirement to bring all flat entrance doors at XXXX into full compliance with fire safety legislation.

 

XXXX Ltd has gone to considerable effort to ensure cost efficiency and compliance by obtaining and evaluating six quotes from vetted contractors. XXXX was selected based on competitive pricing, high service standards, and the ability to offer a 10% group discount. A benefit only possible due to the bulk nature of this arrangement. As already stated in our previous communication, XXXX provided the lowest quote, it is approximately 18% lower than the next lowest quote and 45% lower than the most expensive received. 

That said, if you decide to, we will allow you to withdraw from Option A and instead proceed via Option B, whereby you arrange the necessary fire-compliant works independently at your own cost. 

If you now choose Option B, the following conditions apply: 

● You must confirm this change in writing by 1 August 2025. 

● You must complete the works and provide valid fire compliance certification to XXXX Ltd by 20 August 2025. 

Failure to do so will result in a £100 penalty added to your service charge account, with £100 added each month thereafter until the required works are completed and proof provided. 

Flat X Sale 

Please also note that we are aware Flat X is currently listed for sale. If the fire door works are not completed with option A or B, this non-compliance will be noted in any LPE1 or legal pack issued to the buyer, and may impact your sale process.We strongly advise you to act now, either by proceeding with the already booked works 

under Option A or notifying us in writing of your intention to proceed under Option B by the deadline stated above. 

Please do not contact the contractor directly. All coordination and questions must be 

addressed to XXXX Ltd as managing agent and freeholder. 

If you have any further questions, we are happy to assist. 

Yours sincerely, 

The Board of Directors

The minute they say that you are not to contact their contractor you know that this stinks like a rotten fish

sheramber

If the legal requirement is it has be done by 1 August, could  the penalty be what they will be charged if the work is not done by the date given? 

Friedbagel

Thank you for your email confirming that you now intend to proceed under Option B.

As you will recall, from the outset of this project you were given the choice between Option A (group contractor) and Option B (instructing your own contractor). You initially selected Option A, and all communications from Hilton Grange Ltd have made it clear that Option B works must be completed by 20 August 2025.

Now that you have chosen to revert to Option B, we must insist that you comply fully with the original terms. To avoid any penalties, we require:

• Written confirmation of the scheduled installation date from xxxx, and
• Submission of valid fire certification for the new door and frame once works are complete

Please provide this information. If works are not completed by 20 August 2025, or appropriate certification is not provided, a £100 administration charge will be applied to your service charge account, and a further £100 each month thereafter until compliance is achieved.

As for your request regarding the lease, we suggest you refer directly to your copy of the lease agreement. You will find clear obligations requiring lessees to:

• Keep the demised premises in good and substantial repair and condition (Schedule 2, Clause 4)
• Comply with applicable legislation (Schedule 2, Clause 3)
• Permit the landlord to recover reasonable costs for addressing breaches of the lease

Administrative charges for non-compliance are permitted under these provisions.

Finally, while you are free to choose your own contractor under Option B, Hilton Grange Ltd will not enter into a debate about contractor preference.

We look forward to receiving confirmation of your installation date.

Kind regards,

Board of Directors

Hilton Grange Ltd

Friedbagel

Thank you for your email confirming that you now intend to proceed under Option B.

As you will recall, from the outset of this project you were given the choice between Option A (group contractor) and Option B (instructing your own contractor). You initially selected Option A, and all communications from XXXX Ltd have made it clear that Option B works must be completed by 20 August 2025.

Now that you have chosen to revert to Option B, we must insist that you comply fully with the original terms. To avoid any penalties, we require:

• Written confirmation of the scheduled installation date from XXXX, and
• Submission of valid fire certification for the new door and frame once works are complete

Please provide this information. If works are not completed by 20 August 2025, or appropriate certification is not provided, a £100 administration charge will be applied to your service charge account, and a further £100 each month thereafter until compliance is achieved.

As for your request regarding the lease, we suggest you refer directly to your copy of the lease agreement. You will find clear obligations requiring lessees to:

• Keep the demised premises in good and substantial repair and condition (Schedule 2, Clause 4)
• Comply with applicable legislation (Schedule 2, Clause 3)
• Permit the landlord to recover reasonable costs for addressing breaches of the lease

Administrative charges for non-compliance are permitted under these provisions.

Finally, while you are free to choose your own contractor under Option B, XXXX Ltd will not enter into a debate about contractor preference.

We look forward to receiving confirmation of your installation date.

Kind regards,

Board of Directors