Most blocks put up with a poor managing agent far longer than they need to. Usually because changing one sounds like more trouble than living with it. It rarely is.
Emails that go unanswered. Accounts nobody can make sense of. Repairs that only happen once somebody chases. Compliance certificates you are not sure are up to date. If any of that sounds familiar, you are not alone, and you are not stuck.
Changing managing agent is a normal, orderly process. It happens all the time, and a well handled transfer is barely felt by residents. Here is how it works, when to do it, and what a proper handover should look like.
First, can you actually change agent?
This is the question to settle before anything else, and the answer depends on who appointed the agent in the first place.
If your block is run by an RMC or RTM company
If your building is managed through a residents’ management company or a right to manage company, the directors appoint the managing agent. That means you are the client, and you are free to change agent. It is a decision for the board, taken in line with your management agreement and your articles.
If the freeholder appoints the agent
If the freeholder or landlord appoints the agent, leaseholders do not directly control the choice. That does not leave you without options, but they are different ones. You might raise concerns collectively with the freeholder, look at whether right to manage is available to your block, or in serious cases take advice about applying to the tribunal. It is worth getting proper guidance on which route fits your situation.
Not sure which of these applies to your building? Check who signs the management agreement. If it is your residents’ company, the decision is yours to make.
When is the right time to change?
Two things drive the timing.
Your notice period. Management agreements usually require a period of written notice, often around three months, though it varies. Read your agreement before you do anything else, because it sets the earliest date you can move.
Your service charge year. Wherever possible, it is cleanest to change agents at the end of a service charge year. The outgoing agent closes off the accounts, the new agent starts with a fresh budget, and there is far less untangling to do later.
That said, do not let perfect timing keep you somewhere unsuitable. If compliance is being neglected or money is not being properly accounted for, moving promptly matters more than moving tidily.
What the process actually looks like
- Review your position. Read the management agreement, note the notice period, and get clear on what is going wrong. Most boards find it useful to have a new agent review the block first, so they know what better looks like before committing.
- Appoint your new agent. Compare proposals properly. Look at fees, accreditation, how often someone will visit the site, how accounts are reported and whether your money will be protected.
- Serve notice. Give written notice to the outgoing agent in the form your agreement requires, and confirm the handover date.
- Hand over funds and records. This is the part that matters most, and it is covered below.
- Settle in. Your new property manager sets the budget on a firm footing, picks up outstanding repairs and compliance, and introduces themselves to residents.
The handover: what must come across
A proper handover is not just a change of contact details. The outgoing agent should transfer:
- Service charge and reserve fund monies held for the block
- Accounts, budgets and the year to date position
- Leaseholder records, apportionments and any arrears
- The insurance policy and claims history
- Compliance records: fire risk assessments, alarm and lift servicing, electrical and water hygiene reports, asbestos register
- Contractor details, warranties and any live works or contracts
- Lease documents and the health and safety file
If any of that is missing or slow to arrive, an experienced agent will know how to chase it. Gaps in the compliance file are common and are precisely the sort of thing a new agent should be flagging in the first weeks.
Will residents notice the disruption?
Handled well, very little. The visible change for most leaseholders is a new name on the demand, a new contact number and, usually, a noticeable improvement in how quickly things get answered.
What residents do notice is the difference afterwards. Site visits actually happening. Repairs progressed without chasing. Accounts they can follow. A person who knows the building.
How Chelton Brown handles a change of agent
We take on blocks from other agents regularly, and we run the transfer so the board does not have to. We coordinate the transfer of records, funds and contractor information so nothing is lost, then your dedicated property manager takes over, sets the budget on a firm footing and keeps you informed.
We have looked after property in Northamptonshire since 1975. Our block management division manages more than fifty residential blocks and over seven hundred units across the county. We are members of Propertymark and The Property Ombudsman, we hold Client Money Protection, and we are an Associate Member of The Property Institute.
If you are reviewing your options, we are happy to look at your block and tell you honestly what we see. There is no obligation, and no pressure to move.
Book a free, no obligation management review
We will review how your block is being managed and set out how it could be run better. Call our block management team on 01604 603485, or get in touch through our website.
