Management Companies
In some respects, it’s the Management Company that is the real focus for residents.
It’s the Management Company that takes on enduring responsibility for the maintenance of the Open Space infrastructure delivered by the Developer under the obligations set out in the S106 legal agreement.
It’s the Management Company that Residents pay a Service Charge to under the obligations set out in their TP1 or TR1.
It’s the Management Company that they have the option of joining as a Resident Director to oversee the running of the company in support of its maintenance obligations.
The Challenges that Management Companies Face
- Often, residents end up on the board of a Management Company as Resident Directors, but they have little understanding as to how to run a company. So as a Management Company, it may not have a fully effective board of directors.
- Management Companies may end up in an unhealthy relationship with a Managing Agent that is less than open with the board of directors.
- If a Management Company decides to transition to a new Managing Agent, the old Managing Agent oftens holds on to funds held in trust for much longer than they should.
What Can Residents First Do for Management Companies?
- We can provide support to a board of directors, to explain what they need to do to effectively manage their Management Company.
- We are already helping some Management Companies to change Managing Agent. We can prepare the tender documentation and run supplier selection processes to identify a new, more responsive, Managing Agent.
- If handover of funds are stalled, we can help escalate the request to transfer funds.
Does your Management Company need help in running the company effectively? If this makes some sense to you, then why not get in contact with us?
