Commonhold - what price managing agents?

publication date: Aug 24, 2006

Some flat-dwellers feel, particularly when service charge bills drop through the letterbox, that managing agents have it jammy. Isn't the agent's fee loads of money for not a lot? Isn't there a cheaper way to run the block?

Well, one cost-cutter is to take on the management yourself (although this is absolutely not advisable if your block has more than six flats). But how well up are you on health and safety and employment legislation? What do you know about letting contracts for major works? Are you au fait with the latest regulations on building insurance, accounting, Section 20 consultation notices, asbestos and disability access? How will you feel about taking your nextdoor neighbour to court over his service-charge arrears? How much spare time, evenings, weekends, have you got...?

OK, then why not a cheaper managing agent? Alas, cheaper can equal less experienced. How will your 21 year-old junior with the newly-minted Media Studies degree cope with the couple who regularly have "domestics" at four in the morning? Or your Very Difficult Resident?

Much worse, cheaper may mean your agent isn't registered with the Royal Institution of Chartered Surveyors or the Association of Residential Managing Agents, so you have zero comeback if things go wrong, since managing agents are not legally regulated - a situation ARMA chairman, Duncan Rendall, would like to see changed.

As with most things, so with managing agents - expensive doesn't necessarily mean brilliant. But it's worth remembering your agent is only as good as the people who instruct him, so if he's not doing what your block requires, tackle your landlord or residents' freehold company. Generally, a fair fee buys you a very fair service.

An experienced managing agent provides vital continuity for your block, as leaseholders sublet or move on. He can help new arrivals understand the terms of their lease and settle in as good neighbours. Despite the welter of new legislation over the past three years, he's on top of all the red tape (he'll be happy to explain, for instance, that Section 20 is the new major works consultation procedure). He knows what to do if your neighbours are keeping mice in the common parts to feed to their 7' python. His working day starts early and, if you need him at a residents' meeting, may end at 11 pm. He's a lawyer, surveyor, human resources expert and psychiatrist rolled into one. Are you paying him enough?

Jane Barry, Associate Editor