Leaseholders in apartment complexes often face challenges that lead them to ask, “how do I change my property management company?” Whether the reason for this is poor service, inflated costs, or a lack of transparency, removing your block managing agent or switching to a better property management company is always an option.
In this blog, we will explore the responsibilities of property management agents, common leasehold management company problems, your legal rights, and the steps you can take to remove a managing agent. We will also explain how WHN Solicitors can support you in forming a Right to Manage company if you want to take full control of your property’s management.
Primary Responsibilities of Property Management Agents
A block managing agent plays a vital role in the day-to-day operations of a property. But what exactly does a managing agent do? Primarily, they ensure the property is well-maintained, compliant with laws, and will act as intermediaries between landlords and tenants, resolving issues efficiently. Understanding their responsibilities is key when considering a potential replacement.
The responsibilities of property management agents include:
- Maintenance and Repairs: Ensuring the building and communal areas are well-maintained and that any repair issues are addressed in a prompt fashion.
- Financial Management: Collecting service charges, preparing budgets, and managing accounts.
- Compliance: Ensuring the property complies with all health and safety regulations, fire safety standards, and other legal requirements.
- Communication: Acting as a liaison between leaseholders, freeholders, and contractors.
- Administration: Organising meetings, issuing notices, and managing insurance policies.
A good block managing agent can make life easier for leaseholders. However, a poor one can lead to significant frustration, financial strain, and even disputes.
Common Leasehold Management Company Problems
A block managing agent may be removed due to several persistent issues that negatively impact the property’s management, as well as residents’ satisfaction. This can be a result of poor service, lack of communication, or a failure to meet legal and financial obligations resulting in continued frustration among leaseholders.
Common reasons why leaseholders might consider removing their block’s managing agent include:
- Poor Communication: Failing to keep leaseholders properly informed about important decisions or any issues that could affect the properties.
- High Costs: Excessive service charges or hidden fees without clear justification.
- Neglecting Responsibilities: Failure to maintain the property or address repair issues promptly
- Inefficiency: Unnecessary delays in responding to leaseholder concerns or managing contracts can cause frustration.
- Mismanagement: Inaccurate financial reporting, unexplained or unjustifiable charges, or mismanagement of the service charge fund is a common cause of concern among leaseholders.
Persistent leasehold management company problems can significantly impact the quality of life for residents. Issues such as inefficient communication, unexplained service charges, and mismanagement often drive leaseholders to consider changing or removing their managing agents.
If you are experiencing any of these problems, it may be time to consider removing your block managing agent and exploring alternative management options
Your Legal Rights to Remove a Block’s Managing Agent
Removing a block’s managing agent is a process that must follow specific legal guidelines. In the UK, your right to remove a managing agent depends on the terms outlined in the management agreement, which will outline the agent’s responsibilities, as well as the conditions under which it can be dismissed.
Under UK law, leaseholders have the following options when it comes to removing their block’s managing agent:
- Exercise the Right to Manage: This allows leaseholders to take over the management of their building without needing to prove fault on the part of the current managing agent.
- Appoint a New Managing Agent: If the freeholder agrees, leaseholders can collectively decide to appoint a new managing agent.
- Challenge Poor Management: Leaseholders can take legal action if the managing agent is in breach of their duties or acting unreasonably.
The Right to Manage is a particularly powerful tool, as it gives leaseholders the ability to take full responsibility for their building’s management, without needing the consent of the freeholders, provided certain conditions are met.
For more information about exercising your Right to Manage, view our dedicated blog.
Steps to Remove a Managing Agent
Removing a block’s managing agent can be a complex process, but with the right approach, it becomes much more manageable. Whether you are dissatisfied with their performance or seeking greater control through the establishment of a Right to Manage company, understanding each step is crucial to a successful transition.
This section outlines a clear, actionable guide to help you navigate the process, from reviewing contracts and engaging with leaseholders to formally serving notice and appointing a new agent. WHN Solicitors specialise in supporting leaseholders through this journey, particularly by facilitating Right to Manage arrangements for long-term management improvements.
Let’s break down each key step:
1. Review Key Documents
Start by reviewing both the contract between your block and the managing agent, and the terms of your lease to gain a comprehensive understanding of the process for changing the block’s managing agent.
Key points to look for include:
- Termination clauses: Notice periods and conditions for ending the agreement.
- Performance standards: Any clauses that specify the agent’s obligations.
- Financial penalties: Fees associated with early termination.
Understanding these terms will help you navigate the process and avoid potential disputes.
2. Document Issues and Build a Case
Depending on which method you choose, gathering evidence to support your decision to remove your building’s agent can be important. This could include:
- Records of unaddressed maintenance issues
- Examples of poor communication
- Financial discrepancies or unexplained service charges
- Breaches of contractual obligations
A well-documented case will strengthen your position and may encourage the agent to accept termination without resistance.
3. Engage with Other Leaseholders
The removal of a block’s managing agent will often require the backing of other leaseholders within the building. Consider holding meetings, sharing information you have gathered, and discussing the issues collectively.
Getting the group on the same page and determining a group consensus will make the entire process significantly smoother and help in demonstrating a united front.
4. Serve Notice of Termination
If your contract includes a termination clause, it’s vital that you follow the specified procedure when serving the notice. You should ensure that the notice period, as well as any other contractual requirements are met.
For example, if you are looking to exercise your Right to Manage, you will need to serve a formal notice to both the current managing agent and the freeholder. Failure to do so can result in the process being invalidated.
5. Appoint a New Managing Agent
Before terminating the current agent, it is wise to have formulated a plan regarding getting a new agent lined up. This will ensure as seamless a transition as possible as a period of confusion between block managing agents can cause serious issues in the building.
Your approach to appointing a new agent will depend on the legal route chosen:
- Right to Manage: Forming a Right to Manage company often provides the cleanest and most efficient solution. By taking direct control over the property’s management, leaseholders can guarantee that their new agent will prioritise residents’ interests. WHN Solicitors can assist with the entire Right to Manage process, ensuring a smooth transition.
- Appointment of a New Manager: If you have received a tribunal decision to remove your agent, your solicitor will be able to help you coordinate with a suitable management firm.
- Collective Enfranchisement: Purchasing the freehold will give leaseholders total control over their building. In this case, a solicitor will guide you through the entire complex process.
6. Seek Legal Advice if Necessary
It is generally recommended that you consult with a solicitor specialising in property and leasehold law if you are looking to remove a block’s managing agent. This can be vital in ensuring that the process is followed to the letter, leaving you protected from any unintended consequences should any part of the process be done incorrectly.
How WHN Solicitors Can Help
Removing a block’s managing agent is a significant decision, but it can be a necessary step to protect the interests of leaseholders and improve the management of your property. By understanding your legal rights, following the correct procedures, and securing the support of fellow residents, you can successfully navigate this process.
At WHN Solicitors, we specialise in helping leaseholders remove their block’s managing agent. Our team has particular knowledge and experience helping people exercise their Right to Manage and take control of their building’s management. We can assist with:
- The formation of a Right to Manage company — ensuring that all requirements are met.
- Correctly serving necessary notices to the existing block managing agent, as well as the freeholder where necessary.
- Resolving any disputes that may arise during the process.
- Advising you on which steps are optimal given your circumstances.
Taking control of your property’s management can lead to a significantly upgraded service, lower costs, and greater peace of mind. If you are ready to explore your Right to Manage options, or need any assistance with a long leasehold dispute matter, please contact Eleanor Longworth at [eleanor.longworth@whnsolicitors.co.uk] or call [0161 761 8082]
