Thinking of Changing Your Block Management Company? Start Here...

Is your block being managed as well as it could be?

Maybe repairs seem to take longer than they should. Perhaps getting a response to an email has become a bit of a struggle, or you're not quite sure what's happening with the service charge. Or maybe there isn't one big problem at all – and you're just finding that the relationship with your managing agent isn't working as well as it once did.

Changing block management companies can sound like a complicated process, particularly if you're an RMC director or a group of leaseholders who haven't been through it before. But with a little preparation, it can be much more straightforward than you might expect.

Start by working out what's not working

Before looking for a new managing agent, take a step back and think about what's actually causing the frustration.

Is it poor communication? Are maintenance issues regularly being delayed? Do you struggle to get clear answers about service charges? Or perhaps you rarely hear from your managing agent unless something has gone wrong.

For some blocks, the issue might be more straightforward. A management company that was a good fit several years ago may simply no longer suit the needs of the building. Properties change, residents change, and expectations change too.

Making a note of the things you're unhappy with can be useful. It gives you something concrete to discuss with potential new agents and, importantly, helps you work out what you want from your next one.

Can you change your managing agent?

One of the first things to check is your existing management agreement.

Look at the length of the contract, notice period, termination provisions and any requirements about how notice must be given. There may also be outstanding matters or fees that need to be dealt with as part of the process.

It's worth doing this before approaching a new company. The last thing you want is to find your preferred new agent is ready to take over, only to discover that your current contract requires several months' notice.

If you're unsure about your agreement or how it works, getting appropriate professional advice before taking action can be worthwhile.

Who makes the decision?

This can vary depending on how your block is structured.

If your building is run by a Residents' Management Company (RMC), the directors will usually have an important role in decisions about appointing a managing agent. In other arrangements, responsibility may sit with the freeholder or an RTM company.

If you're a leaseholder who's unhappy with the current management, you may not be able to change the agent yourself. However, raising your concerns with the RMC, freeholder or whoever is responsible for the management is a sensible place to start.

Understanding who has the authority to make the decision will make the process much easier.

Finding a new block management company

Once you've decided that a change is worth exploring, don't feel you have to rush into choosing the first company you speak to.

Talk to a few managing agents and ask questions about how they actually work.

How do they communicate with residents? How quickly do they respond to issues? How often will they visit the property? How do they deal with contractors and repairs? What is their approach to service charges, compliance and longer-term maintenance?

And perhaps most importantly, who will actually be looking after your block?

A good relationship with your managing agent matters. You should feel comfortable asking questions, raising concerns and knowing that someone is keeping an eye on the building.

Don't just compare the price

It's understandable to look closely at the management fee when comparing companies. Service charges need to be carefully managed, and nobody wants to pay for services they don't need.

But the cheapest quote isn't necessarily the best value.

A company that charges less but is difficult to contact, slow to deal with repairs or unclear about costs can become frustrating very quickly.

Instead, look at what's included in the fee and what might be charged separately. Ask about inspections, maintenance, accounts, compliance and contractor management.

You should have a clear understanding of what you're paying for before making a decision.

What happens when you change management companies?

This is often the part that sounds most daunting.

Changing agents doesn't mean the RMC or leaseholders suddenly have to take on all the work themselves. A good new managing agent should be able to guide you through the handover process.

Once the appropriate notice has been given to the existing agent, important information will need to be transferred. This could include service-charge records, financial information, insurance details, maintenance records, contractor information, keys and compliance documents.

The new agent can then get to know the building, review what's already in place and identify anything that needs attention.

There may be some paperwork involved, but a well-organised handover should make the process relatively smooth.

What should you expect from your new agent?

Changing management companies is a good opportunity to think about what you'd like to see done differently.

Perhaps you want better communication. Maybe you want clearer service-charge information, quicker responses to maintenance issues or more regular updates about what's happening around the building.

You might simply want a more proactive approach, where potential problems are spotted and dealt with before they become bigger ones.

Whatever your priorities are, talk about them with potential managing agents. It will help you find a company that's a good fit for your block rather than simply choosing based on price.

Is it time for a change?

There isn't one particular moment when a block has to change its managing agent.

Sometimes there is a major problem. Other times, it's simply a growing feeling that the current arrangement isn't working as well as it should.

If that's where your block has found itself, it can be worth exploring your options.

Start by checking your existing agreement, talk to the people responsible for the management and speak to a few potential new agents. You may find that changing your block management company is much less complicated than you first thought.

Considering a change in Reading?

If your block is thinking about changing managing agents, Fennell Estates is always happy to have an informal conversation about your current arrangements and what you'd like to improve.

You don't need to have everything worked out before getting in touch. Sometimes a conversation is simply a useful place to start.

We provide block management across Reading and Berkshire, so if you are considering a change of block management company in Reading, we'd be happy to talk things through.