10 Red Flags When Choosing a Managing Agent

Below are ten indicators that should prompt an RMC or RTM board to pause and ask further questions before proceeding.

1. No voluntary regulation at all

If an agent holds only the legally required redress membership and nothing more, that is a conscious strategic choice. It’s worth asking why they have opted not to submit to any wider professional oversight.

2. Vague or evasive answers about staffing

If they cannot clearly explain who will manage your building – and how many other developments that person is responsible for – this may point to overstretched resources.

3. Heavy reliance on manual processes

A reliance on manual systems often leads to inconsistency and limits transparency. In modern block management, operational infrastructure plays a significant role in service quality.

4. Poor financial transparency

If an agent struggles to explain how service charge accounts are prepared, how arrears are managed or how year-end timelines are maintained, future clarity may become an issue.

5. Lack of clarity on building safety

If they find it difficult to explain how they discharge building safety duties – including maintaining compliance evidence and managing statutory workflows – they may not yet be equipped for the demands of modern block management, especially for Higher-Risk Buildings (HRBs).

6. No track record with buildings like yours

Experience matters. A firm that performs well with smaller converted buildings may not be suited to a large new-build development – and vice versa.

7. A proposal that feels generic

If their submission could apply equally to any building, it suggests limited understanding of your development’s specific needs. Strong managing agents will usually demonstrate that they have taken time to understand the building itself: its scale, structure, history, likely challenges, and governance context.

8. Unusually low fees without explanation

Low pricing can sometimes reflect high caseloads, under-resourced teams or reliance on additional income streams elsewhere.

9. Overly defensive or dismissive behaviour

If a firm resists fair comparison, becomes defensive when challenged, or focuses on criticising competitors rather than explaining their own approach, it may indicate cultural misalignment.

10. Poor communication during the tender

If responses are slow, unclear or disorganised during the selection process, it is reasonable to question how communication may look once appointed.

The Director’s Take

A single red flag doesn’t necessarily mean “walk away”. But it does mean “look deeper.”

When several appear together, it is usually a sign that further scrutiny is needed before proceeding.

Choosing a managing agent is as much about judgement as process – and sometimes the most valuable insight comes not from what is said, but from what is missing.

About the Author

Jonathan Channing is an independent property management consultant working across the residential leasehold sector. A Fellow of The Property Institute (TPI), an Associate of RICS and an Honorary Consultant to the Federation of Private Residents’ Associations (FPRA), he also co-founded Proper Talk, the industry panel discussion series. Jonathan serves as an RMC director for two residential developments himself and regularly supports RMCs, share of freeholders and RTM companies in sourcing, assessing and appointing managing agents – helping boards navigate the market, structure tenders and make informed governance decisions.