As a residential landlord, it is important to hold the residential management company (RMC) to account.
What a residential management company does
To hold them accountable, you must first understand their responsibilities and accountability. The RMC is responsible for managing the property on your behalf, and you have a right to ensure that they are doing their job properly.
This includes:
- Property Maintenance: The management company is responsible for the day-to-day maintenance and upkeep of the property. This includes routine maintenance tasks like landscaping, cleaning common areas, repairing and maintaining building structures, and ensuring that all amenities (if any) are in working order.
- Financial Management: The management company handles the financial aspects of the property. This includes setting and collecting service charges, managing property budgets, paying property-related bills (e.g., utilities, maintenance, insurance), and providing financial reports to property owners.
- Insurance Management: Ensuring that the property has appropriate insurance coverage, such as liability insurance and property insurance, to protect against unforeseen events or liabilities.
- Legal Compliance: They ensure that the property complies with all laws and regulations. This includes matters related to property safety, housing laws, and freehold compliance.
- Property Inspections: Regular property inspections of communal areas are conducted to identify and address maintenance issues promptly. These inspections help maintain the property’s value and ensure that it remains a desirable place to live.
- Emergency Response: They provide emergency response services, such as handling maintenance emergencies (e.g., plumbing or electrical issues), addressing security concerns, and ensuring the safety and security of residents.
- Record Keeping: Maintaining accurate records is essential. This includes records of financial transactions, maintenance and repair history, and legal documents related to the property.
- Long-Term Planning: Property management companies often assist in long-term planning by providing insights and recommendations for property improvements, renovations, and budgeting for capital expenditures.
- Data Protection and Privacy: Complying with data protection and privacy laws, such as the General Data Protection Regulation (GDPR), when handling tenant or owner information.
How to hold your residential management company to account
There are a number of things you can do to hold the RMC to account, including:
- Attend the AGM. The AGM is an important opportunity to ask questions about the RMC’s performance and to hold them accountable. You should also use the AGM to vote on important decisions, such as the election of directors and the approval of the budget.
- Review the RMC’s accounts. The RMC is required to publish its accounts each year. You should review these accounts carefully to ensure that the RMC is spending your money wisely and that it is not making any financial irregularities.
- Raise any concerns you have. When you have concerns about the way the RMC is managing the property, raise them with the directors or the managing agent. You should also keep a record of any concerns you raise and the RMC’s response
If you are not satisfied with the RMC’s response to your concerns, you may need to take further action. This could include contacting the RMC’s regulator or the Property Redress Scheme.
Key questions to ask at an AGM
Here are some key questions you should ask at the AGM to ensure that the RMC and resident directors are doing their jobs and representing all parties, not just their own self-interests:
- What are the management company’s priorities for the coming year?
- How has the management company performed in the year?
- Are all residents being treated fairly?
- How is the management company communicating with residents?
- How will the management company manage the budget?
- How will the management company maintain the property?
- What is the management company’s process for dealing with complaints?
- How will the management company manage emergency spending requirements?
- How will the management company ensure that amenities at the property move with the times and address all resident needs?
- How is the management company promoting a sense of community among residents?
- How will the management company support sustainable living practices going forward?
- Are the management company confident that the property conforms with all accessibility requirements for all residents?
In addition to these general questions, you can also ask specific questions about the RMC’s performance in the past year. For example, you could ask about the RMC’s progress on any major projects, such as repairs to the property or the implementation of new energy efficiency measures.
You should also use the AGM to ask questions about the RMC’s fees and charges. You should ensure that the fees are reasonable and that the RMC is providing value for money.
Tips for holding the RMC to account
Here are some additional tips for holding the RMC to account:
- Get organized. Before you attend the AGM, take time to get organized and to think about the questions you want to ask. You should also review the RMC’s accounts and any other relevant documents. You can find the 2021 AGM minutes for Garden Mews here.
- Be prepared to back up your claims. If you have any concerns about the RMC’s performance, be prepared to back up your claims with evidence. This could include emails, letters, or photos.
- Be respectful. Even if you are unhappy with the RMC’s performance, it is important to be respectful when raising your concerns. Avoid using personal attacks or name-calling.
- Be persistent. If you do not get a satisfactory response from the RMC, do not give up. Keep raising your concerns until you are satisfied that they are being addressed.
By following these tips, you can help to ensure that the RMC is managing the property on your behalf in a responsible and accountable way. Garden Mews is looking for new Residential Directors. To be involved in helping carry out the duties of the Residential Management Company, see this article.