Right to Manage for Block Management
Before 2002, the block management landscape was very much in favour of the Landlord, meaning that in certain circumstances, residential blocks were mismanaged and not up to a suitable or agreed standard.
It all changed when the Commonhold and Leasehold Reform Act 2002 passed – this now means that providing all agreed criteria are met, leaseholders can now take control of the management within a communal block, should they wish.
What does that mean for you?
Right to Manage (RTM) means that the leaseholders take responsibility for ensuring communal parts of the block, such as:
Lift maintenance, concierge and staffing, garden and communal areas are maintained, service fees are collected, health and safety legislation adherence and meeting companies house legislation. As you can see, there’s a fair bit of work to oversee.
Because of the high volume of tasks and management, many RTM companies will seek the support of a professional managing agent. They aim to help leaseholders achieve the RTM and take back control & expenditure of the buildings they have invested in.
What are the advantages of Right to Manage?
No Excessive Service Charges
With RTM, you have control of all expenses, meaning you can get the best deals, reducing the overall fees each tenant has to pay for the upkeep of the block.
Control of Maintenance And Repair Standards
Overall control also means that you, through the property managing agent, can ensure contractors on-site resolve repairs quickly, to an agreed standard.
Right To Manage Is Fair
All members form an RTM company, with each leaseholder having equal voting power within the company – this means that, during AGMs, voting takes place to decide various matters fairly.
Right To Manage Formation Is A Right
Meaning, that there is no compensation due to the Landlord or Freeholder. As long as you satisfy the criteria, you have the right to manage. You will, however, have to cover any costs that the Landlord incurs as a result of the RTM company takeover.
Control as a Leaseholder
Leaseholders or a group of their fellow investors acting as their representatives (RTM Company Directors) want consultation on costs, management and required maintenance – As well as being able to agree or disagree with the managing agent’s suggestions and instruct differently.
Examples of this would include:
- Instruct a managing agent to obtain competitive quotes for any maintenance or service contract – If you considered previous quotations too high.
- Ensuring a full market appraisal is obtained before placing contracts for utilities, gas and electricity.
- Working collectively with the managing agent to prepare an annual service charge budget.
Urban Evolution’s success with RTM
Urban Evolution has a track record of successfully achieving the RTM on behalf of leaseholders, who have been unhappy with the management at the buildings in which they have invested their hard-earned cash.
Sometimes it is due to the lack of management and deterioration of the building that raises concerns for leaseholders or frustration at the spiralling unsustainable cost of the service charge demanded of them.
In many instances, it is a mixture of these two aspects.
In summary, Urban Evolution knows that leaseholders and property investors want to feel secure that their building is professionally managed at a reasonable cost whilst seeing the most value from their investment.
We understand that leaseholders and investors want more control of their investment. Urban Evolution delivers this by cooperating on input and being transparent with the costs and services involved in property management.
Urban Evolution works for and with leaseholders and investors, allowing you to take back control, and have a managing agent who works in your best interest and works on your instruction as opposed to dictating terms and costs as some agents may.