Here’s How

If you’re living in a residential block, it’s important to stay abreast of what is happening with the overall building management, even if you think you don’t have a say because you are one of many.

As a resident, owner or tenant, the condition of the building that you live in is directly connected to your quality of life, safety and daily activities. If a lift isn’t working, that’s a major problem for people with limited mobility or who have children to manage. If the lights are not coming on at the right time, that’s a safety hazard, especially with the clocks going forward this weekend. Recently, on Property118.com a reader posted asking for a new managing agent for a six-flat block. They described poor communication, a two-month wait for CCTV footage, and extra bills for clearing fly-tipping with no explanation.

Good building management and property maintenance comes from having a good property management agency at the helm, a solid strategy and good communication between the agency, landlord and residents. So, if you’re thinking of changing agency or looking for a better level of service there are some protocols to follow.

CONSIDERING A CHANGE OF MANAGING AGENT?

Whether you can actually go ahead and change agency depends upon who appointed the agent. Agents are only appointed and removed by the landlord, the RMC or the RTM company, and leaseholders aren’t necessarily aware of this.

This gives you three routes … and a last resort:

Resident-controlled RMC (the easiest)
The directors decide and give notice under the management agreement.
Freeholder-appointed agent
Leaseholders can’t simply vote the agent out, but they can persuade the freeholder to change or take control themselves.
Right to Manage
For many blocks, RTM is what makes a change possible. It’s a no-fault right, so leaseholders don’t have to prove anything against the freeholder or agent. The basic tests are that the building is a self-contained block, at least half the leaseholders take part, and at least two-thirds of the flats are on long leases (originally over 21 years).

The RTM company serves a claim notice, the landlord has at least a month to respond, and management transfers at least three months after the claim notice.

HOWEVER, it’s important to note that leaseholders can still be liable for the freeholder’s costs if an RTM claim fails, so employing a specialist solicitor is essential to deliver the best-case scenario.
The last resort – Tribunal appointment of a manager
This is a last resort once complaints to the landlord, RMC directors and agent have all failed. If this should come to pass there are some guidance notes from The Property Institute (TPI).

BEFORE YOU SWITCH

It’s a good idea to start with the agent’s own complaints process and its redress scheme. Then check:

The contract
Read the management agreement carefully. Check the notice period and any handover terms and stick to them. Trying to cut the notice short usually backfires: the outgoing agent is still owed their fees, and the new agent may start without the funds to run the building.

Timing
Where you can, time the change to the end of a service charge period or accounting year. It makes the accounts much cleaner.

The finances
Is the service charge account in credit or deficit? Are there large arrears? Is the current agent owed any fees you dispute? It’s vital to find out in advance, not after handover.

Transparency
If there are clear problems, it is better to be honest with the new agent about the state of things rather than expecting them to sort out a mess. Being transparent from the outset will help your new managing agent to get to grips with things faster – and that will get you on a better footing overall more rapidly.

THE HANDOVER

The new agent must ideally present the outgoing agent with a detailed handover checklist, agree a timescale and provide methods to pass on any relevant documents. The majority of unspent funds must also be passed to the incoming agent on or before the agreed handover date as the new agent can’t be expected to manage without funds.

During the handover, communication is paramount and both outgoing and incoming agent should liaise regularly with the landlord, RCM or RTM to keep them informed of the status.

All documents related to the property belong to the client, not the agent. Therefore, agents cannot hold documents hostage over any unpaid service charges. There is also no basis for the outgoing agent to make charges for the handing over of documents. For buildings over 18 metres, the building safety “golden thread” information must be handed over too.

With regards to accounts, an outgoing agent must prepare reconciled accounts no later than three months after the date of handover, unless otherwise agreed. They must also hand over all invoices and receipts to allow the filing of end of year accounts.

If there are any unpaid fees outstanding, the outgoing agent must address that with the Landlord, RCM or RTM. This should be settled in advance of the termination date.

MIH is a member of The Property Institute whose handover guidance is succinct and useful and sets out three stages.

The Property Institue Changing managing agents

Stage 1. At least four weeks before handover: provide leaseholder details, contracts, insurance documents, the current budget, arrears and any live disputes.

Stage 2. On handover day: pass unspent funds not needed for commitments already made to the new managing agent.

Stage 3. Within three months: hand over the remaining balance plus reconciled accounts.

A good incoming agent will lead all of this for you, from writing to the outgoing agent to setting up new trust accounts and telling suppliers.

HOW MIH APPROACHES A NEW BUILDING

We know that switching agents can feel like a leap of faith, especially if you’ve been let down before. Here’s what happens when MIH takes on a building:

i) We contact your outgoing agent, agree the timetable and chase the documents and funds, so you don’t have to have that awkward conversation.

ii) We start with a full lease review. Before anything else, we read your lease properly, so everyone knows who is responsible for what.

iii) Your money is protected. Service charge funds are held in ring-fenced trust accounts, as the law requires, with any interest paid back to the building.

iv) You’ll know who to call. Every building has a named property manager, and appropriate cover if they’re away.

v) We tell you what to expect. We flag any problems we find early, in the process along with a proposed plan and realistic cost.

vi) We abide by a 364 day term as advised by the TPI model guideline.

HERE’S WHAT OUR CLIENTS SAY:

“My fellow leaseholders and I set up an RTM and had to appoint a management company, before even selecting MIH, Sarah and Candice were absolutely fantastic with advice and guidance. After selecting MIH, the team have continued with exceptional customer service and support during challenging times. We are very happy with MIH.”
Ivan Gladkow

“MIH are by far the best property management company I have worked with. As a leasehold flat owner for 20 years and a director of both the right-to-manage and later the freehold company for 15 years, I’ve experienced firsthand the service MIH provides compared to numerous other managing agents we have used over the years. At one point I was losing all hope that there is a managing agent out there who can do the job.

What truly distinguishes MIH is that they create tangible value for property investments while communicating responsively to owners, addressing issues promptly and implementing improvements that enhance both the property’s value and residents’ quality of life.”
Nasrin Hafezparast

“Since we appointed MIH to manage our block of flats in London, we have consistently received clear, detailed and professional assistance on every issue we have been facing. We took ownership of our freehold as a group of non-experts, and so MIH’s help (especially Sarah and Pablo) has been invaluable in getting everything in order.

Even before we signed the contract, they were exceptionally helpful in advising on all matters. This is exactly the kind of service that I would hope to have in an ideal world – and we are lucky to have them on board.”
Sam Saffarian