At first glance this may not seem as attractive as Resident Management Companies, because it does not always carry with it ownership of the freehold. But right to manage legislation, put fear into managing agent and management companies, who had been used to appointment by landlord, and realised they would have to up their game. There was a new boss in the industry – the residents.
As a director of a Right to Manage Company you may or may not be part of the team who invoked the legislation to take management away from the managing agent, regardless of whether that agent was doing a good job or not. You now have control and responsibility of how and who manages the building. Your relationship if it be the case that you don’t own the freehold, with the freeholder need not be difficult. They will still be in the frame and entitled to the ground rent each year, but right to manage was and is particularly attractive to residents who cannot afford to buy the freehold from the landlord, which can be beyond the reach of most residents.
It goes without saying that residents in an earlier age may have killed for this privilege. Recent research from the Competition and Markets Authority shows that residents of leasehold properties who have more control, are the happiest. But before you get too excited, in our experience invoking the legislation does not always produce the results which residents expected. As with a resident management company, it involves more than new powers to set the budget, choose contractors and tell the gardener what to do.
If you have taken this on yourselves you will have had to form a company in accordance with the Companies Act of 2006 and with that all of the responsibilities of looking after the building including health and safety; building insurance; risk assessments; employment law; financial accountability and knowing your lease. This can produce friction between residents which is why RTMs whilst being happy to have control, still choose to assign the management or certain parts of it, to a managing agent and play a supervisory or managerial role instead.
This works well for both parties because residents whilst always wanting a greater say, do not have time, or want to choose what time to invest in working for the RTM. This is where we come in. If you are interested in invoking Right to Manage we recommend a visit to the Leasehold Advisory service but a more brief list of what to do is shown here.
If you would like to have a meeting to discuss things further contact us to arrange a date and time.
Finally, it is important to stress here, that 2 Rivers does not have a financial, corporate or personal relationship with our colleagues. Their fees and charges are calculated separately without kickbacks or commissions of any kind.
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