Using a managing agent
The role of a managing agent
The role of a managing agent today is a complex one and requires a professional approach. To carry out the role requires knowledge of landlord and tenant law, building construction, health and safety regulations, basic accounting and more.
There are benefits to professional management which should be balanced against the fees which leaseholders will have to bear.
Benefits of using an agent
Professional managing agents will bring an organised approach to the planning and collection of the service charges and reserve funds, the timetables for redecoration and repairs and inspection and supervision of works.
Their assessment of what must be done, and when, will be independent of private interests and preferences and based solely upon their duty to keep the premises in good repair.
The process of collecting funds and the responsibility for taking steps to recover unpaid charges will be removed from the individual directors of the RMC.
A managing agent should be geared up to handle the mundane and time-consuming administration, and may handle it more efficiently through better facilities for storage and retrieval of records and documentation essential for accounting purposes.
Issues and disputes can be dealt with impartially by an arm’s length agent in order to limit the animosity and division which could arise where personal issues become the business of neighbours and colleagues.
The agent distinguishes between the needs and duties of the company under the Companies Acts and the needs and duties of the company in its separate role as landlord under the leases and the relevant landlord and tenant legislation.
Fidelity insurance cover to protect client funds is a significant advantage over self-regulation of funds by individual members.
Agents should hold professional indemnity cover as a further protection against negligent acts or incompetence.
Using an agent passes some of the responsibility for compliance with leases, laws and codes of practice to the agent. But the directors of an RMC are responsible for setting policy and monitoring the work of the agent.
- Last updated:
- 27 August 2021
- Next review:
- 12 December 2026
Related content
Guide for leaseholders taking on the director's role of a right to manage company
Advice guideYour options if you're unhappy with how your building is managed
Advice guideHow to complain to a redress scheme about a property manager, and what happens
Advice guide