Can I change my managing agent? This is a question that is often asked to us at Apex Property Management. The answer depends on the set up of your property/development and who controls the appointment of a managing agent. There are various types of structure for who controls the appointment of a managing agent, the main three being Freeholder Managed, having a RTM (Right to Manage) and being a RMC (Residents Management Company). Below we will detail each scenario.
If your development is freeholder managed, this means the freeholder manages the communal/shared areas of the building or estate. The freeholder may complete the management themselves, or they may choose to appoint a managing agent to complete the management on their behalf. Good freeholders will want qualified and competent managing agents to be managing their freeholds, however some freeholders are not so interested in the management aspects, and this can lead to having a poor-quality managing agent in place.
You may find that just telling your freeholder you want a different managing agent will be enough for them to agree to a new agent being appointed. However, in the instances where you cannot contact the freeholder, or they will not listen to your requests, you can look at implementing the Right to Manage. You can find more information on the Right to Manage here.
The Right to Manage (RTM) was introduced via the Commonhold and Leasehold Reform Act 2002. It is an important right for leaseholders.
As a RTM company you will have leaseholders who own units within your property as Directors. With the RTM in place, the Directors of the RTM company can appoint any managing agent they want to manage the property.
Residents Management Companies are put in place to manage the communal areas of the property and protect the interests of all leaseholders within the property. If applicable, when you bought your apartment you most likely were also made a shareholder (and potentially even a Director) of the RMC.
The Directors of the RMC have the right to appoint any managing agent they would like to manage their property. This ensures both the obligations of the ‘freehold’ and legislation for the communal areas, correct maintenance and improvement works, are completed to high standards and professionally.
It can be easier than you think to change your managing agent, and the above has hopefully given you some insight into solutions.
For further details on how we can help, or if you have any questions, please contact us.