4 Common Issues that Resident Management Companies Face & How to Avoid Them

Posted by Connect UK Auctions on 8th June 2023 -

Leasehold properties make up an estimated 20% of the English Housing Stock. A lot of the time, these almost 5 million properties use block management companies to control the freehold, allowing them to make decisions that affect how the block is managed on a day-to-day basis.

A Residents Management Company (RMC) is a special company governed by a board of long leaseholders who make unanimous decisions regarding the management of the block or estate.

Here are 4 common issues that RMCs deal with:

1) Maintenance & repair disagreements; The costs considered when arranging for property maintenance in repair can cause directors to disagree, and tension to build between them — which may impair or jeopardise the future management of the property.

Inexperience as well as rushing decision-making may cause these disagreements to occur, a simple fix would be to allow enough time (if the situation permits) for the directors to make a decision that everyone is content with.

2) Daily building management: Simply being present and up to date on the daily operations and developments within the block is an essential part of managing it. As many directors of the RMC will have jobs and other duties outside of the resident’s company, and so do not have the time or availability to be present all the time to confirm that jobs have been completed, meet contractors, or ensure that cleaning has been completed.

As such, many RMCs find it worthwhile to employ a managing agent to handle the day-to-day management and duties in the block.

3) Lack of transparency & insufficient communication; Due to the complexity of managing a block, finance management, and maintaining legal compliance, poor communication can cause unnecessary issues and problems later down the line.

As many directors will have other duties, inside and outside of the block or estate, it is advisable to have a single, dedicated point of contact for both the residents and directors to report to — this responsible person could be a leaseholder within the block or part of an employed managing agent and should keep all relevant parties informed at all times.

4) Not addressing important issues; whether it's significant building and repair works, or insurance not being updated, when managing a block — pressing, and time-sensitive issues will arise and will need to be dealt with swiftly and responsibly.

One way to bring all relevant parties up to speed with issues that need immediate attention is through holding a general meeting — where directors of the RMC can meet to discuss all significant issues and make unanimous decisions for the betterment of the block.

The responsibilities of a residents’ management company are significant and can be very time-consuming, especially if the directors of the company have busy lifestyles, as such, many leaseholders find it helpful to use a managing agent to assist with the daily running, legal compliance, and scheduling of maintenance and building works.

Is your block in need of better management?

We offer a bespoke and extensive block management service so that members of an RMC can rest assured that their block is in the hands of experts who are experienced in all matters of property management.

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