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Many people consider a faceless agency that demands money (the taxman is a typical example) as the enemy. Many managing agents find themselves in this position because very few lessees know who they are, and even fewer have met them. Therefore, the moment that managing agents demand money, they are disliked. When they chase for it, instructing lawyers if need be, they are vilified.
This position is often worsened because few managing agents smooth service charge collection with telephone calls, and many leave arrears chasing so late that peaceful resolution is impossible. Conversely, lessees who have categorized the agency as a money-grabbing enemy might attempt to make collection difficult by postponing payment as long they can.
Far too frequently, lessees play no part in block management, so managing agents’ service charge budgets and reserve fund contributions are approved by the building’s board without lessee consultation. Therefore a lessee who considers that he owns his flat, and should have a direct say in all that is spent on it, might not understand the breakdown of the budget and the need for service charges. This is particularly the case for those brought up overseas with no understanding of British leasehold and service charges.
Many lessees’ only contact with managing agents is at stressful moments: a leak needs fixing, rubbish needs moving, or they need urgent information to facilitate a sale. These tasks appear simple. However, it is not always straightforward to provide immediately a reliable Polish plumber to do the job within a realistic budget, so managing agents don’t often supply the instant service the lessee requires, and animosity develops.
The above examples are caused by a lack of communication. So the first priority of the managing agent is to communicate effectively with lessees. This is not always easy. Letters are treated as junk mail and paid scant attention, emails are read, but not often acted upon, and it can be impossible to reach lessees on the telephone during office hours.
The agent must somehow solve the communications problem and develop trust, so that both parties can work together effectively. A key part in this is the simplification of the Section 20 consultation documents and other statutory letters. With these couched in impenetrable legalese, many lessees do not understand that they can, for example, nominate a contractor or comment on the management of the building.
As a managing agent we strive to ensure that the board and lessees understand terms of business and services that are provided, and grasp the notion that many of those services will add value to their property.
We welcome the appointment of a building manager to deal with all day-to-day building matters, leaving the managing agent to do those tasks at which he or she excels, namely accountancy, handling disputes, financial management, consultancy on all matters relating to the Landlord and Tenants Acts, processing licenses to alter, and finally major works.
For the most effective building maintenance, the managing agent needs to manage efficiently and capably, with the support of the lessees. This can only happen if lessees and management agent trust each other and work together.