What happens after you have acquired the Right to Manage?

Once the Right to Manage has been acquired by a block of flats the hard work really begins. As the Right to Manage process has usually been instigated as a result of unsatisfactory management of the building, it is not uncommon to find the flat owners apathetic towards Managing Agents in general due to previous bad experiences. The flat owners will need to decide whether to self-manage or instruct a managing agent of their own choosing. Generally, in all but the smallest buildings, it is advisable to instruct a professional managing agent. Importantly, the incoming managing agent needs information about the building, such as copies of all counterpart leases and contracts in place prior to the right to manage being acquired (these may need to be renewed by the new RTM company) as well as the accounting books and records. These will need to be investigated and where necessary updated as a priority.

The incoming managing agent should treat the flat owners as professional clients and discuss their expectation levels thoroughly in advance. As part of this process it is helpful to draw up a detailed action list and set a list of priorities and to pre-arrange monthly meetings with the new directors for the first six months. The flat owners should also be encouraged to hold their own regular meetings with the RTM directors so they are suitably briefed and can properly instruct the new managing agent. Finally, by way of introduction, the managing agent should circulate a newsletter explaining what has happened and how the building will now operate.