APPOINTING A MANAGING AGENT
Your block needs a property manager. What do you do next? On the following pages we look at the benefits and pitfalls of appointing a managing agent and offer some advice about what to do if your agent doesn’t provide the level of service you expect
Appointing a
agent managIng *
The role of a managing agent is complex and requires a professional approach to get it right. To carry out the role successfully requires knowledge of landlord and tenant legislation, an understanding of building construction, familiarity with the health and safety regulations, basic accounting and more. Before you appoint an agent, here are some of the aspects you and your fellow RMC directors should consider. First, draw up a schedule of all the services you need from a prospective agent. The Association of Residential Managing Agents (ARMA) provides a checklist (see website details at the end of this article). Make a shortlist of potential agents - ask other flat owners or fellow residents in your own block for their recommendations as well as going to the websites of local agents to get basic information about their location, services and contact details.
Is my agent properly qualIfIed?
When you are appointing an agent to manage your block, look out for firms that carry membership of an established professional trade body. Appointing a qualified agent offers you protection against negligence and access to an official complaints handling procedure if something goes wrong as well as insurance protection for your service charge money. It also means that the agent you use is likely to offer a higher quality of service than a company that is unregulated.
askIng the rIght questIons
Always invite potential agents to come along to meet you informally before asking for a formal tender. Make sure you have a copy of a standard lease for the block and an annual statement of accounts. Any good agent will want to look at these if they are to tender for the job. At the meeting there are a number of issues that should be raised: n Be upfront about any problems you think will need to be tackled such as current debtors, relations with any existing or former agent
Flat Living
Summer 2012
meet potential agents before asking for a formal tender
“I think the most important services a managing agent can provide are sound financial control/ accounting and independent professional judgement. The position is fundamentally one of trusteeship and if this is always at the forefront of an agent’s thinking then many consequences follow naturally, including the need for best value purchasing, financial transparency and a respect for the interests of the beneficiaries of the trust, who are the lessees.” duncan rendall, chairman, Rendall & Rittner
and the state of the block’s current finances. The agent will ask you a range of questions to determine what he or she might be taking on. n Find out who will be your key contact if the agent in question takes on your property management. Be sure to emphasise that you want to meet that person in advance of making a decision. Also ascertain what will
happen if that person is sick or on holiday. n Find out who will handle phone calls and emails from RMC directors and flat owners. n Who will choose contractors that are used to carry out works on your block? Do you want to retain final approval? If so, make that clear from the outset. n Ask about disclosure of commissions –
47
