The Essential Parts of a Property Management Contract

Before selecting a managing agent to handle your residential block, there are certain key provisions in a property management agreement that you should think about. The first step is to ensure the agent is licensed by a professional organization such as the Royal Institution of Chartered Surveyors (RICS) or the Association of Residential Managing Agents (ARMA). You should consider the following after you've verified they're reputable:

Management Fees

A service fee for performing routine maintenance, repairs, and other tasks associated with residential block management is common procedure with managing agents. Before you enter any agreement, ensure that you are fully aware and agree with the following:

• What services will the property manager provide? Is this everything from arranging repairs, maintaining common areas, ensuring compliance with health and safety regulations to more?

• What is the total cost each year?

• Is there any money changing hands between the agent and other parties? It is typical for an insurance broker to get a commission on Buildings Insurance, although they may also receive a payment from additional third parties such as contractors.

• The service charge breakdown

Your Responsibilities

A managing agent is an independent third party that acts as a liaison between the landlord and the homeowner. The directors of the management firm, on the other hand, are ultimately responsible for monitoring the activities performed by the agent.

You must maintain constant contact with the agency and make sure that instructions can be given as needed. You also must ensure that the agent organizes the Annual General Meeting on an annual basis, since this is a great place for all leaseholders to voice any concerns about the agent's performance.

The Services Rendered

The contract should also make it clear exactly what services are covered by the residential block management agreement, as well as which ones they will not perform.

They may also offer a list of services that are not within the contract's current scope, but they will perform for an extra fee, such as a Fire Risk Assessment or Building Reinstatement Valuation.

The Duration of The Contract

Any agreement for a period of more than 12 months must be notified to all leaseholders through a consultation procedure. You should not join up for longer without going through this procedure.

The Termination Clause

You may want to terminate your contract if things aren't going well with your managing agent. If you find yourself in this scenario, double-check the termination clause so you know how to cancel with your managing agent. You don't want to be charged penalties for early cancellation.

It is always best to complain to your management team before terminating anything. This offers a chance for changes to be made and makes sure that you aren’t charged any unwanted penalties.

Always Read Your Contract Carefully!

With any contract you enter into, double-check that you have thoroughly read it and that you are aware of all of the provisions.

Having a good understanding of what services will be provided, what services will not be supplied, the rates, the length of the contract, and other information is critical.

If the agent is governed by ARMA, he or she should utilize their standard agreement, which is meant to guarantee that all parties' interests are safeguarded and that everything is covered.

Choosing a well-established managing agent will allow you to delegate some of the responsibilities that need a professional touch. As a result, your residential block will run more smoothly.

Scanlans Property Management are a leading residential block management company, providing block management services for Landlords and leaseholders.