News story

Recognised tenants associations help leaseholders to help themselves and improve the management of their properties

Setting up a recognised tenants’ association (RTA) is often the first step residential leaseholders should take when there no issues with management and service charges. So says The Leasehold Advisory Service (LEASE), the government-funded free legal advice service. A RTA enables the block to speak with one voice: approaching the landlord individually cannot be as cohesive.

“Things like cleaning, routine maintenance and door entry systems that can, over time, agitate those living in leasehold properties,” says LEASE chief executive Tony Essien. “It is often the case that, when they speak together as an RTA, that leaseholders can nip many of these problems in the bud. An RTA offers a single point of contact for those who own and manage their premises.”

If leaseholders also want to embark on major collective projects like changing management, challenging service charges outright or even buying the freehold, then forming a residents association is the easiest way of ensuring that everyone is involved and committed before the whole process is begun

It is important to seek formal recognition as an RTA, because the law then gives the association the powers and rights under leasehold law that it needs to be really effective. Often landlords simply grant recognition without any argument: after all why deal with 20 individuals when you can deal with one? However, if they refuse to do so, then private leaseholders can apply to a Rent Assessment Panel (RAP) for recognition. RAPs are part of the Residential Property Tribunal Service, which also has responsibility for the Leasehold Valuation Tribunals that can adjudicate on a range of leasehold disputes.

RTAs can be set up by blocks of any size and have the right to be:

• consulted about the appointment of managing agents,
• notified of works proposed by the landlords and to receive copies of estimates,
• submit the names of contractors that it would like to be included in a tender list,
• obtain information about service charge accounts,
• appoint a surveyor who will have rights of access to the property and to the documents retained by those who manage the property.

Current legislation does of course give individual leaseholders many rights, but RTAs do have additional rights, says LEASE. Leaseholders can demand information about their own service charges and landlords have to consult and try to obtain estimates from leaseholders’ recommended contactors when works to their building will cost any one leaseholder more than £250.

Perhaps the most detailed handbook for setting up a residents’ association is available for sale from the Federation of Private Residents’ Associations, a non-profit association of associations for private sector blocks of flats. It represents the interests of thousands of leaseholders living in around 500 blocks. FPRA Chairman Bob Smytherman, is actively promoting the importance of forming a Residents' Association as the first step in dealing with management problems in leasehold properties.

FPRA Chairman Bob Smytherman commented: "Running your own leasehold building can often be time consuming for a few individuals and the formation of a recognised residents association can share the burden out more fairly.”

Further free advice is available from LEASE’s team of 16 qualified lawyers on 020 7374 5380.

LEASE also publishes a range of detailed guides, all freely available to download at www.lease-advice.org. Hard copies are available from LEASE on 020 7374 5380.

The Federation of Private residents Associations can be contacted on 0871 200 3324 or visit their web site at www.fpra.org.uk.

(News story added: 26 May 2010)