Press Article
METRO - 29 September, 2011
Managing agents
By Jo Eccles
Conversations about good versus bad managing agents have come up quite a lot recently, usually with owners of flats who are unhappy about the management services they’re receiving – I can totally empathise having been the Chairman of the residents association in the block of flats I used to live in.
A managing agent is a professional company that is put in place by residents or a freeholder to manage the building on behalf of the owners, typically found in larger blocks where there are more than four properties within the building. They are contracted to oversee functions such as the collection of annual service charges, the maintenance work of the building, and to keep the building insurance up to date.
As well as adding value (or not) to the day to day running of the building, a managing agent plays a big part when it comes to the buying or selling of the property. A buyer’s solicitor will always send enquiries to the managing agent of the property being bought. In some cases, badly run managing agents can take weeks to send back requested information, and no good solicitor will recommend that a buyer goes ahead with a purchase without vital information. Hence, it can often be the managing agents who delay purchases which at times, affects the whole chain. We had one case where the managing agent of the property a client of ours was buying couldn’t even locate the building in their records as the building’s name had changed!
So, if you’re considering appointing a managing agent, or indeed changing one, it’s helpful to know how to find the right one. The first step is to find approved management companies who are members of the Association of Residential Managing Agents (ARMA) or the Royal Institute of Chartered Surveyors (RICS). Next, it’s advisable to choose companies which are based fairly close to your building, and then ask them to tender. Good managing agents will usually ask to visit the building before they tender to get a better understanding of its size and condition. Be wary of any management company who simply submits a price without asking many questions. It’s also an idea to try calling them several times – one common complaint is that it’s difficult to get a response, so if the phone rings out or no one returns your call, it’s a fairly good indicator that the company may not be particularly efficient.
When you ask each company to tender, don’t give them a brief that’s too rigid – leave it to them and see what they suggest and how appropriate it is. At any pitch, make sure you direct questions to the proposed property manager – who is likely to be your point of contact – don’t let their boss do all the talking. Last but not least, don’t forget that you often get what you pay for, so don’t let price alone be the determining factor.