Running a right to manage company
Dealing with contractors
The right to manage company will usually need to arrange services from various contractors such as maintenance, cleaning and utilities.
If you use a managing agent, they can arrange and manage contracts and pay invoices. The board will need to give the managing agent clear instructions. If you’re self-managing you need to find and negotiate with suppliers directly.
It’s best to meet potential contractors on site, and get at least 2 quotes to compare the value. Check that suppliers have appropriate insurance cover.
Make sure you review contracts regularly. If you want to change supplier, check what notice period you need to give.
Check whether you need to follow the Section 20 consultation process. You do not need to do this for contracts that last 12 months or less, such as insurance and your managing agent.
Site staff
If you have site staff such as a warden or caretaker, the right to manage company will become their employer. The company will be responsible for that employee after handover under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).
You will need to decide whether any changes to their terms and conditions are necessary and get specialist advice first.
You can find out more about TUPE on GOV.UK.
It may be easier to have staff employed through an agency rather than directly by the right to manage company, as the agency will then be the direct employer. However there will be fees for this.
If you have a managing agent, they will oversee any staff day to day.
Although it’s rare, some buildings have staff who live rent-free on site, for example in a caretaker’s flat. If the flat is owned by the landlord then you may need to pay rent and the staff’s household bills to the landlord for housing the staff. You need to negotiate arrangements with the landlord.
- Last updated:
- 16 December 2025
- Next review:
- 16 December 2027
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