Management Company Costs

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    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

                              Latest Activity

                              Collapse

                              • Reply to Service Charge Percentage Wrong
                                by AndrewDod
                                But he is not being charged 3% of the total.

                                £1969.93/£188,912 = 1.042%

                                Which is about correct albeit the exact apportioning into the 0.99% band vs 1.1% band is a little hard to follow.

                                about 100 flats and he is paying about 100th

                                There may be something...
                                22-11-2019, 01:59 AM
                              • Service Charge Percentage Wrong
                                by gidoc
                                Dear all,
                                I hope this forum can guide me to the next step. I have a leasehold apartment, which I purchased in July 2007. I have never been able to go through the whole lease esp the page no1, which clearly defines the service charges as 1%. I am however been charged 2%( extra 1% for communal areas,...
                                17-11-2019, 21:47 PM
                              • Reply to Advice on Building Regs and Lease covenant
                                by ram
                                Irrespective of what the lease says, if a modification is such that would be deemed that certification is required, then the Law overrules the lease.
                                But without knowing what the modification was, and if it was authorised by the freeholder, and it does not contravene listed building criteria
                                ...
                                22-11-2019, 00:19 AM
                              • Advice on Building Regs and Lease covenant
                                by Harwood
                                Hello

                                Bit of a long shot but i wondered if anybody could advise if the Building regulations would be covered under the following lease covenant;

                                "At all times during the said term to comply in all respects with the provisions and requirements of the Town and Country Planning...
                                14-11-2019, 17:21 PM
                              • Reply to Service Charge Percentage Wrong
                                by gidoc
                                Update: The Leasehold Advisory Service said to give the Company another 2 wks to respond, if they do not engage to resolve/recalculate service charges- I should follow the formal complaint process via Ombudsman and or go via First tier property tribunal.
                                21-11-2019, 23:21 PM
                              • Reply to RMC - Dormant Status with HMRC - Banking
                                by Gordon999
                                If you pay all service charge money from leaseholders into one "client account" and use same bank account for paying all maintenance bills, then you will satisfy Companies House's requirement for keeping the RMC as a "dormant company"....
                                21-11-2019, 21:52 PM
                              • RMC - Dormant Status with HMRC - Banking
                                by bigalxyz
                                I'm one of the directors of an RMC looking after a leasehold building (having recently taken over from an external property manager).

                                The company is dormant at HMRC. It has a business account, unused. All of our funds (service charge monies) are in a separate client account.

                                ...
                                19-11-2019, 14:44 PM
                              • Reply to Collective enfranchisement - additional cost of airspace lease
                                by nukecad
                                It's an important distinction.

                                FTT rulings are not 'Case Law', UT rulings are.
                                If it was FTT then it's not going to be published as a matter of course, UT rulings are but can take a bit of finding....
                                21-11-2019, 18:51 PM
                              • Collective enfranchisement - additional cost of airspace lease
                                by Lorimer
                                Wondering if anyone can advise on whether and how much a 999 year lease of airspace with a ground rent of £1,500 per annum, rising by £100.00 per annum every 15 years will impact on the premium we are likely to pay to buy the freehold of our building?

                                The background:
                                We have been...
                                16-11-2019, 07:49 AM
                              • Reply to Section 20 query & liability dispute
                                by leaseholder64
                                On question 1, they could ask for retrospective dispensation, and following on some case law, the leaseholders still have to pay what they can demonstrate would have been payable if the process had been done properly.

                                I can see nothing that would stop the section 20 being started again...
                                21-11-2019, 18:39 PM
                              Working...
                              X