Management fees

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    Management fees

    Management fees - how do these management companies work out the Flat cost per unit? RICS code advocates a per unit fee? Just wondering what the average fee is?

    #2
    Between £200 -£380 per flat . Often smaller blocks of flats pay higher management fee ( fewer flats to share the cost. )

    https://www.lease-assn.org/leasehold...ement-fees.php

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      #3
      Thank you Gordon 999

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        #4
        Can see a section 27A Landlord and Tenant Act application in pipeline..

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          #5
          If you intend to argue that management fees for your block are too high, it will help if you have a good understanding of how much work the agents are likely to be required to do each year, or at least, what they are likely to be able to convince a tribunal that they do.
          If all that they do is arrange insurance, management fees should be low (potentially even nothing), on the other hand, if the block is in a poor state of repair meaning that the agents are regularly having to arrange temporary repairs and are organising work to bring the building up to scratch, gardening and cleaning need arranging, and the block requires regular safety inspections, a higher fee may be justifiable.

          Average fees aren't necessarily what is "reasonable" for your block.

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            #6
            Spot on Macromia so a management fee in excess of £300 for arranging the insurance, creating a spreadsheet with approvimately 5 transactions on and collecting service charges should be minimal.....they now want to add on an accountancy fee, company secretary fee and we don't have meetings because of COVID 19

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              #7
              You are unlikely to get far arguing that accountancy fees are unreasonable unless the total for accountancy is above £500 - £900. This is the case even if there is virtually no spending other than insurance and management fees, because organisations representing accountants have had enough influence to falsely claim that having independent accountants sign off service charge accounts helps protect leaseholders. The reality is that, for all smaller blocks, it provides no value whatsoever and is nothing more than an additional expense.

              If the managing agent acts as company secretary, that will also be considered a justifiable additional charge, as this isn't something that would be considered a function that should be covered by the management fee.

              £300 per unit for management fees might be considered reasonable in a small block (perhaps 5 or 6 flats), especially if this amount includes VAT.
              It may come down to how well each side argues!

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