If you live in a leasehold property or own a share of the freehold within a residential development in London, using a professional Resident management companies London offers many practical and financial benefits compared to self-management. Read on to learn why having an RMC can lead to cost savings, hassle-free living, and an enhanced sense of community.
What is a Resident Management Company?
A resident management company (RMC) is a property management company that specializes in overseeing shared assets and providing services to leasehold estates, apartment buildings, gated communities, and other multi-unit residential developments. An RMC will have responsibility for the following within a development:
Services Provided
Financial Management
- Administering service charges
- Setting budgets and collecting owner contributions
- Maintaining sinking funds and reserve accounts
- Managing investments
- Arranging adequate building insurance
Maintenance Services
- Overseeing cleaning, janitorial, landscaping, and security contracts
- Coordinating major repairs and scheduled maintenance
- Ensuring compliance with health and safety standards
- Conducting regular inspections and risk assessments
Compliance and Governance
- Adhering to relevant legislation and statutory regulations
- Preparing section 20 consultation notices
- Issuing Annual Reports and Accounts
- Facilitating AGMs and managing company records
Reasons to Use an RMC in London
There are many advantages to using a professional RMC versus self-managed properties or informal resident committees.
Hassle-Free Living
RMCs handle administrative tasks like budgeting, documentation, contractor management, and statutory compliance so owners and residents can enjoy living in their properties without added responsibilities.
Access to Amenities
Many London RMCs have relationships with contractors, vendors, and service providers that individual owners would not be able to access directly. This enables access to better pricing and a higher standard of maintenance and community facilities.
Community Building
By centralizing operations and communications, RMCs can foster social connections and a sense of community within properties through things like resident portals, newsletters, group discounts, and joint events.
Cost Savings and Financial Benefits
Appointing an established RMC can also yield significant financial rewards including:
Economies of Scale
As RMCs manage multiple properties, they can negotiate better rates for utilities, insurance policies, landscaping crews, and maintenance contracts which gets passed onto owners through lower service charges.
Professional Financial Management
Qualified RMCs have strong accounting, budget planning, and contract negotiation skills leading to well-run budgets, prudent decision making regarding community funds, and avoidance of unexpected special assessments.
Reserve Fund Contributions
Reputable RMCs will ensure adequate contributions to future repair and replacement funds are built into annual budgets protecting property values and preventing the need for special assessments or loans.
Features to Look for in an RMC
If you have decided to use an RMC, here are some key capabilities to look for:
Industry Experience
Seeking an established RMC with years of experience managing similar types of communities ensures they have proven systems and expertise dealing with buildings like yours.
Staffing and Responsiveness
Make sure the RMC has sufficient administrative and maintenance staff to look after your development properly. Having an assigned property manager and 24/7 contact for emergencies is also vital.
Technology and Communication
Choose an RMC that embraces technology through online portals, digital invoicing and payment options, remote monitoring of building systems, and use of social media, email, and text updates to keep you informed.
Questions to Ask When Selecting an RMC
Here some other questions you should ask when evaluating RMCs:
What is Your Fee Structure?
Ask about all fees including management fees, onboarding/exit charges, out of hours rates, administration markups, etc. Make sure charges are competitive and there are no hidden costs.
What Maintenance Services Do You Provide?
Determine what tasks are included like common area cleaning, gardening, building inspections, out of warranty repairs, planned upgrades, etc. This will impact the overall service charges.
How Will You Keep Our Community Informed?
Confirm what resident reporting is provided – i.e. community newsletters, email distributions of notices and accounts, convenient homeowner portals, etc.
Signs You Need to Switch Management Companies
If your current RMC displays the following characteristics, it may be prudent seeking alternatives:
Poor Communication
Lack of returned calls/emails, accounting delays, sporadic budget updates, and insufficient consultation on issues indicates poor management.
Unexpected Special Assessments
Frequent special assessments because of budget deficits or unforeseen repairs suggests your funds are not being managed appropriately.
Declining Community Upkeep
If buildings, landscaping, and common areas become rundown due to lack of oversight, a switch to a more hands-on RMC with a proven maintenance program is likely needed.
Conclusion and Next Steps
Appointing a reputable resident management company with extensive leasehold experience and tailored services delivers significant advantages to shared communities in London seeking well-run, maintained, and financially stable developments.
If considering handing over your estate management, conduct comprehensive research including interviewing other development directors. Get proposals from multiple established industry RMCs outlining their offerings and pricing. And investigate their governance procedures, staff qualifications, financial track record, and use of technology to support residents.
By making the right RMC choice, you can transform how your leasehold asset is operated and unlock benefits leading to an improved lifestyle for residents and better future prospects. Reach out today to discuss options with a professional you can rely on.
FAQs
What are some RMC warning signs to watch out for?
Some common warning signs include frequent staff turnover in key roles, significantly higher service charges versus comparable properties, resistance to calls for transparency, insufficient financial reserves, and an unresponsive or disengaged directory board.
How can leaseholders with concerns about their RMC’s management escalate issues?
In most cases, owners should first raise complaints privately with your dedicated property manager or resident liaison. If not addressed satisfactorily, bringing issues to the attention of head office leadership in writing is the next approach, potentially even involving your local MPs office for support if systemic concerns observed over months.
Should our proprietary estate even need an RMC with an active resident committee in place?
Yes, strong resident committees are still usually not resourced or equipped to handle full RMC duties. Supplementary support services will always be required no matter how capable your directors are due to the specialized nature of accounting, compliance, maintenance coordination and lack of competitive purchasing capabilities.
What fees should leaseholders expect to pay annually for RMC oversight?
Average RMC management fees often amount from 5% to 20% of your property’s total annual service charges budget. The wide percentage range reflects the level of services provided based on community amenities, size/complexity, location, support infrastructure and team.
Could incumbent freeholders attempt to influence or manipulate our RMC selection process?
It depends on your estate lease terms. Freeholder approvals on incoming RMCs are unlikely required on most shorter leases with share of freehold structures. However, they could hinder transitions if lease terms provide them explicit rights over property management decisions or service provider changes longer-term. Ensure your executive committee reviews current contracts thoroughly if any influence attempts are suspected inappropriate.
