The Hidden Work Behind a Managing Agent Handover

As a family business, those relationships matter to us. Good communication is not about always having an instant answer. It is about being open about where things stand, what still needs to happen and then doing what you said you would do.

That becomes especially important when a development changes managing agent. A new agent can feel like a fresh start, particularly where communication has been poor or maintenance has dragged on. But before changing anything, the incoming agent needs to understand exactly what they have inherited.

More than a transfer of files

A handover is not simply a folder of documents moving from one company to another.

The incoming agent needs leases, service charge accounts, budgets, contractor details, insurance information, fire safety and health and safety records, maintenance history, arrears information and details of major works already planned or underway.

Then there are the everyday details. Who looks after the gates? When was the lift last inspected? Who has the alarm code? Is there a warranty on an earlier repair? Is an insurance claim still open?

None of these questions sounds dramatic, but not knowing the answers can cause problems quickly.

The reality is that handover information does not always arrive in one neat package. Some records come through late, others may be incomplete and older documents can be missing. Occasionally, what is written down does not quite match what is happening on site.

There is usually a fair amount of checking, chasing and joining the dots before the incoming agent has a clear picture.

Following the money

The financial handover needs the same care. It is not enough to know the balance sitting in an account. The new agent needs to understand what has been spent, which invoices are outstanding, what is held in reserve, who is in arrears and what spending has already been agreed.

A contractor may still be waiting to be paid for work completed months earlier. Money may already have been set aside for planned works. Directors may have approved expenditure that has not yet appeared in the accounts.

A change of agent does not create a clean financial slate. The new agent takes responsibility from the handover date, but they still need to understand what happened before it.

What the paperwork does not tell you

Paperwork only gets you so far, which is why an early site visit matters.

A maintenance schedule may look fine on paper, but a walk around the development might show a door that is not closing properly, tired decorations or a repair that has clearly not lasted.

Residents and directors are often the best source of the detail that never makes it into a formal handover pack. They know which area floods after heavy rain, which gate is temperamental and which faults keep coming back.

That local knowledge matters, but it also needs to be checked. The new agent has to listen, look at the history and work out what is still live and what needs attention first.

The same applies to contractors. A change of managing agent does not automatically mean every supplier needs to change. Some know the site well and are doing a good job. Others may need to be challenged or replaced.

Changing contractors just to show that something is happening can create disruption without improving the service. Sometimes the right decision is simply to keep what works and change what does not.

Managing the first few months

This is often where expectations come into play.

A new agent may have been appointed because people were unhappy with the previous service, so residents and directors understandably want to see progress. Long-running repairs may come back to the top of the list and directors may want contracts or spending reviewed straight away.

Some things can be dealt with quickly. Others need investigation, quotations, funding, consultation or specialist advice. Pretending everything can be fixed immediately helps nobody.

One of the first things we try to do at Cleaver Property Management is get clear on the priorities and tell people what they are. Most residents understand that everything cannot be fixed in a week. What frustrates people is not knowing whether anyone has picked an issue up or whether they need to chase again.

Even if the answer is that more information is needed or a quotation is still outstanding, people need to know where things stand.

The part people rarely see

When a handover works well, most residents will never see the majority of the work involved. Service charge demands still go out, contractors know where to send invoices and emergency arrangements continue to work.

That is how it should be.

For me, the best handover is not the one with the biggest promises. It is the one where the new agent takes time to understand the building, the finances, the people and the history, keeps everyone informed and then starts making sensible decisions based on what is actually there.

Changing managing agent happens on a date in the calendar. Getting properly under the skin of a development takes longer, and that first period sets the tone for the relationship that follows.

Sarah Cleaver, Managing Director, Cleaver Property Management