Management Company Costs

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    Management Company Costs

    Hello all

    I wonder if somebody with "real life experience" could give me an indicative cost for a MC to manage 4 Leasehold flats within a converted building?
    It is currently self managed by a limited Company comprising the 4 directors who are also shareholders of the freehold.
    (Any recommendations would be most welcome)
    Many Thanks
    Andy

    #2
    Are you talking about managing agent fees? If so, in which part of the country.

    Some people suggest that it can be almost impossible to get someone to quote for such a small number.

    Most agents charge a per flat fee and also charge a percentage on larger items of work. You need to consider the definition of larger item and the overall cost. Also some agents will take commissions. You need to get details of those.

    Comment


      #3
      Thanks, yes, managing agents, North West (Lancashire)
      I've heard the same re the low number,
      Any experiences appreciated

      Comment


        #4
        As said, may be difficult and relatively expensive to engage agent.
        Have you thought about having separate people ? A book keeper or accountant for finances and a trusted builder for maintenance. Work would be delegated but still

        Comment


          #5
          Having a tame builder operate section 20 seems too much a conflict of interest.

          Comment


            #6
            Point taken and agreed. Surveyor did once suggest asking a contractor. Is that perhaps different ? or for S20 perhaps surveyor ?

            Comment


              #7
              Contractor is just a posh name for builder. I think building companies work as contractors and sub-contractors almost interchangeably, depending on which one actually forms the contract with the customer.

              Surveyors will do section 20s, but may be expensive for small ones.

              Comment


                #8
                Thanks all
                Historically it was/is managed by the 4 directors but as you may have seen on previous posts the relationship with 1 leaseholder Director is untenable due to his breaches and an ongoing case. He basically disagrees with everything, looks for things he can complain about and is confrontational and belligerent when approached.
                Therefore looking to outsource

                Any help/advice most welcome

                Comment


                  #9
                  Why not remove him as a director ? Then he will not be able to vote on decisions. Still be a pain but will he ever change whatever. A management company should not act independently of directors.

                  Comment


                    #10
                    Originally posted by scot22 View Post
                    Why not remove him as a director ? Then he will not be able to vote on decisions. Still be a pain but will he ever change whatever. A management company should not act independently of directors.
                    Fair point, he would still be a shareholder in the Freehold.
                    The main problem was that any communication to him from the Company came from the Company Secretary (not me) who he then abused and harrased as though it was a personal issue.
                    The Company Secretary has, unsurprisingly resigned.

                    Maybe outsourcing Company Sec may be an option?

                    Comment


                      #11
                      I would get information on outsourcing whatever you can. If he is not a director then not able to be part of Company management. As a shareholder can cause some hassle but will not be involved in decision making between AGMs.

                      Comment


                        #12
                        This newspaper report may convince your block to stay self managed :

                        https://www.theguardian.com/money/20...ew-build-flats

                        Comment


                          #13
                          Originally posted by scot22 View Post
                          Why not remove him as a director ? Then he will not be able to vote on decisions. Still be a pain but will he ever change whatever. A management company should not act independently of directors.
                          This is seeming like an attractive option - Does anybody have any experience of this? Do you not need a good reason to remove a director EG dishonesty etc?
                          Having checked, it would appear our Articles of Association would allow it

                          Comment


                            #14
                            I don't think that the articles can remove the statutory right of the members to remove a director.

                            Comment


                              #15
                              Removing the 'difficult' director is really the only option here, appointing a managing agent won't address the situation and will only increase costs.
                              Good managing agents will do what the directors tell them, so the decisions will still be being made by the directors (including the difficult one). Employing a managing agent who does what they want, rather than what the directors want, is likely to put you in a worse position than you are in now.

                              Comment

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