Excessive management fees?

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  • Excessive management fees?

    Hello,

    Since buying a leashold property 2 years ago I have been paying, as part of the service charges, a fee to the managing agent for their services. There was a change of managing agent towards the end of the first year. The first agent charged around £35 per month and the second charges around £220 per year.

    Now, I fully agree that a managing agent should be paid a fair fee for the work they do and I can easily image situations/properties where £200 to £400 per year per unit would be reasonable. However, in our case, as far as I can tell, they have done very little work. The only contact we have is when they send service charge bills, when they eventually respond to my occasional query and once when we managed to persuade them to actually visit the property, which was the only visit they had made in many, many years.

    The property is a converted house which contains just 2 flats. There are no contracts in place for cleaning, maintenance, gardening etc., they don’t arrange the insurance (this is done by another company) and the ground rent is paid to yet another company. As far as I can tell they do very little to justify any management fees at all.

    So, I was wondering, is £220 to £420 for doing next to nothing considered reasonable in the world of property management and what would my chances be of successfully challenging this at LVT?

    All comments and opinions are very much appreciated.

  • #2
    Repost on LONG LEASEHOLD Forum, please.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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    • #3
      OK. Sorry!

      Comment

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