FAQs
- Why employ a managing agent?
- What is a Residents’ Flat Management Company?
- What are my responsibilities as an owner?
- Why do I have to pay service charge?
- What happens if I don’t pay my service charge?
- How can I pay my service charge?
- I have received a demand for payment but I am paying by standing order.
- What is ground rent and why do I have to pay it?
- What do I do if I am not happy with the services being provided?
- What if I have a problem with noisy neighbours?
- Who arranges the insurance on the property?
- How do I become a Director of the Management Company?
- What are the responsibilities of a Director of a Management Company?
Why employ a Managing Agent?
A Managing Agent such as Scanlans Property Management LLP has considerable knowledge, expertise and experience in the management of a diverse property portfolio.. A Managing Agent is able to advise upon various issues including Health & Safety, changes in legislation, accounting requirements etc. In addition, Scanlans Property Management LLP are members of and regulated by the Royal Institution of Chartered Surveyors (RICS) and the Association of Residential Managing Agents (ARMA). In addition, we are regulated by the FSA for the provision of insurance services. For further information on the role of Managing Agents we would suggest visiting the ARMA website which has a section specifically relating to the role of a Managing Agent.
What is a Residents’ Flat Management Company?
The Management Company is set up at the start of the development by the developers. It is a company which has responsibility for providing all of the services to the development as set out in the Lease. These include such items as buildings insurance, communal area cleaning, landscape maintenance and general maintenance and repairs.
All owners of properties within a development are either shareholders or members of the Management Company and following the sale of the last property within a development, the owners of properties take control of the Management Company themselves. It is normal for them to continue to appoint a managing agent to act on behalf of the company to provide the various services. In our capacity of Managing Agents, we would ensure full compliance with Company legislation and Companies House requirements.
What are my responsibilities as an owner?
As an owner within the block, you are responsible for anything within your apartment including any wiring or pipe work that only supplies your apartment.
You must also abide by the covenants set out within the Lease. These included such things as ensuring there is no noise nuisance to other residents, obtaining permission for pets and not making any internal alterations. Full details can be found in your Lease. The Lease will probably also prohibit the display of For Sale and To Let signs at the property.
If you are subletting the property, please ensure that we are provided with your alternative contact details. You also need to make sure that your tenant is aware of the covenants affecting the property.
Why do I have to pay service charge?
The requirement to pay service charge to the Management Company is set out in the Lease. It is to enable the Management Company to provide all of the services. The service charge budget is set annually and then reconciled following the end of each year against the actual expenditure, and all the owners of properties receive a certificate detailing the expenditure against budget.
What happens if I don’t pay my service charge?
The non-payment of service charge can have an effect upon the provision of services to a development. It can result in communal areas not being cleaned, gardens not being maintained and the buildings not being insured. It is imperative that all owners pay their service charge promptly to ensure that the Management Company has sufficient funds to provide all of the services to make sure that the property is well maintained and insured.
In addition, if you do not pay your service charge, the Management Company can take legal action against you. This could result in your mortgage company being contacted or a County Court Summons being issued against you. Interest can also be added to the unpaid service charge.
How can I pay my service charge?
Most Leases provide for the service charge to be paid on set dates throughout the year. These can be annually, half yearly or quarterly. In the majority of developments however, we encourage payment by monthly standing order and we would be happy to issue you with a standing order form. Payment can also be made by bank transfer, cheque or by credit card over the phone. There is a £4 charge for credit card transactions.
I have received a demand for payment but I am paying by standing order.
Due to the automation of our payment demands system, it will recognise any service charge arrears unless your record is specifically marked that you are paying by standing order. If you are paying by standing order, please ensure that the amount that you are paying is sufficient to meet ongoing charges.
What is ground rent and why do I have to pay it?
The ground rent is completely separate from the service charge. This is an annual rent payable to the freeholder of the development and is provided for in the Lease which you signed when you purchased the property.
What do I do if I am not happy with the services being provided?
In the first instance you should contact the managing agent who should be able to resolve the issue or explain why it cannot immediately be resolved. If you are not satisfied, you can contact the line manager for the property manager responsible for your development and ultimately pursue our Complaints Procedure. You can also raise any concerns with the Directors of the Management Company who will be owners of properties within the development if all the properties have been sold. Alternatively, you may wish to contact the Leasehold Advisory Service (LEASE).
What if I have a problem with noisy neighbours?
Most Leases contain clauses which prohibit the playing of loud music etc outside of certain hours. If you have a persistent noisy neighbour you should contact the Managing Agent who will contact the occupier of the property direct and also the owner if the property is rented out. Most Local Authorities also have wide ranging powers in the event of persistent complaints. You should therefore also contact the noise pollution department at the local authority.
Who arranges the insurance on the property?
The buildings insurance for the property is placed based upon the individual terms of the respective lease. In certain instances this an be arranged on behalf of the Management Company by Scanlans Property Management through a broker or via the landlord’s agent, depending on the term of the Lease. Scanlans Property Management are registered with the FSA for the conduct of insurance services. Should you need to make a claim on the buildings insurance or you would like a copy of the insurance certificate, please contact your property manager.
Residents are responsible for ensuring that they have their own contents insurance for the property.
How do I become a Director of the Management Company?
Directors are normally elected at the Annual General Meeting. You would normally need to give notice of your wish to become a Director prior to the meeting. If you wish to become a Director, please speak to your Property Manager.
What are the responsibilities of a Director of a Management Company?
The Directors of a Management Company are elected by the other shareholders or members and are able to make various decisions with regard to the provision of services to the development such as setting the budget, changing service providers etc. The Directors also sign the accounts each year. Depending upon the size of a development, the Directors would normally have regular meetings with the property manager to discuss any issues arising. Further information on the role of a Company Director or Company Secretary can be obtained from Companies House website: http://www.companieshouse.gov.uk/.
