Switching Managing Agent Is Easy
Your Guide to Switching Managing Agent
How to Change Your Managing Agent
If you have an existing management company or RTM company for your building, the process should be quite straightforward. The directors of your company will have the right to appoint a new managing agent. If you are not a director, you could either approach the directors or become a director to make your feelings known.
If you do not have an existing management company, there are several routes to obtaining the management:
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If your freeholder appoints the managing agent, you could approach them and ask if they would be willing to change the agent to one of your choosing. This is quite unusual – but sometimes worth a try. Be aware that the agent will then be a client of the freeholder albeit the leaseholders will be the customers of the agent.
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You could buy the freehold for the building – usually called collective enfranchisement. This can be a costly and lengthy process and will require legal advice.
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You could go through the ‘Right to Manage’ process, which is a ‘no fault’ process – the management will pass to a Right to Manage company established by the leaseholders, providing that your building meets certain qualifying criteria.
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You could approach the First Tier Tribunal (FTT) to appoint a manager and receiver for the property – this is a ‘fault-based’ process so you would have to successfully argue your case at the FTT for the appointment.
If you already have a management company or RTM company, or are considering the RTM route, please get in touch and we will be happy to assist.
Frequently Asked Questions
Will changing agent be a lot of work for the directors of the building?
The only two things that you really need to do are to terminate the contract with your existing managing agent and to appoint a new one. We can assist you on the best way of handling both of these.
How do other buildings usually approach changing agent?
We see a lot of different styles of approach to us when buildings are considering changing agent. Often buildings have put a huge amount of time and effort into the tender process. If you are considering changing agent, we would recommend getting in touch with us – we can supply you with sample tender questions which you can use to approach your chosen potential agents. We can also talk you through how the process typically works best and what timeframes you can expect to achieve the change in.
We have projects underway / in the pipeline. Can you still assist?
We regularly take over the management of buildings which are part way through section 20 consultations and even where major works are already partly underway. We can step in, review where things stand and bring the project to a successful conclusion working with the existing surveyors and contractors.
How long is the handover process likely to take?
Generally, The Property Institute standards confer an obligation on managing agents to complete management handovers in the following three stages:
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Stage One; all static property information (i.e. leaseholder contact details, insurance policies, contractors & supplier information and health & safety files etc.) should be issued within 30 days of the handover date at the latest.
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Stage Two; key fobs, tenant arrears statements and details of any sales pending should be issued on the handover date at the latest, together with a transfer of any uncommitted service charge funds; and
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Stage Three; full reconciled accounts, with itemised accruals and prepayments up to the final date of management, should be issued within 90 days after the handover date at the latest.
