Sometimes blocks come together, and decide it is time to change who has been appointed to manage your block. Or, perhaps the previous company is moving out of block management, and you need someone else to take over. Further, if a resident is handling it all, and now needs additional support, it can all be treated in the same way as changing agents.
When you change the agent who is managing your block, the process is simpler than changing from Freeholder management to Right To Manage. There are fewer legal hoops to have to jump through, however there are certain processes that should be followed to ensure a smooth transition.
So, if you are unhappy with your current agent, and have been through their complaint’s procedure, it may be time to move on. This can be done by either the freeholder deciding to end the contract, or, if the block is run by an RTM company, the directors decide to change companies. If you’re under a fixed term contract, it’s worth contacting prospective new companies at least 3 months prior to the end of the contract and getting quotations.
Now we’ve decided we are changing, what should we do?
Firstly, what period of notice is required in the management agreement? If there is no such agreement or period of notice in the agreement, what period would suit matters best? It’s always best to give at least 28 days notice to allow you to gather all the required information from the old agent, that the new one needs.
Make sure that any termination date fits in with service charge payment periods or the end of the accounting year to make handover and accounting easier. For example, if service charge is due on the 1st of April, terminate the contract on the last day of March. That gives the new agent the chance to write to all residents and say “make sure from 1st April that all payments come to us”.
What is the current financial position for your block? Is the service charge account in deficit or credit? The new agents will want to know this, and if anyone in the block owes anything. If there are large arrears, that may make it difficult for the new agent to provide certain services. This should all be available from the current agent.
Make sure you know what the current agent is due to be paid and any management fees they are due. Also make sure that any accountancy statements are provided by the current agents, before you hand everything over to the new agents. You may wish to get these checked by an accountant to ensure they are correct.
To ensure that management can continue to run smoothly, there are certain documents that should be handed over to the new agents. This should include any contracts that have been taken out with contractors that will continue under the new agents, copies of Fire Risk Assessments, EPCs, insurance certificates, anything related to the infrastructure of the building (lifts, boilers etc) and some other items as well.
Please, do not just expect a new agent to sort everything for you. Whilst it may seem daunting, and your relationship with the previous agent may be in tatters, but it’s vitally important that anything the new agent asks for, is provided. The new agent should also be aware of any problems, and previous issues, so as they can guide you on how to move forward. Most agents have been in this position before, and know how to proceed. However, please be aware that for extreme cases, the new agent may impose a fee for dealing with messy handovers.
Changing block management agents – to us!
We hope that helps, and if we can help you with managing your block, please do contact us for further details. We can provide most of our services across England.