What is a managing agent?
A managing agent is a specialist company which manages the communal areas of a block of flats or a new build housing estate. This will be funded through the service charge or estate charge, which leaseholders/homeowners pay into. The managing agent charges a management fee on top of the service charge or estate charge, which is all detailed in the budget and accounts.
They are appointed to do this by either:
1. A housebuilder or property developer because a new build housing estate or block of flats needs maintenance for communal spaces such as a playground, car park, lifts, gates or shared open spaces.
2. A freeholder will usually appoint a managing agent for the buildings and/or land that they own. How much they want the managing agent to get involved can vary, but usually, we will collect the service charge and ensure the building and communal spaces are maintained.
3. A resident management company (RMC) of a new build estate or a block of flats which need our skills and experience in managing service charge or estate charge accounts, plus contacts in repairs and maintenance and skills in health and safety.
What does a managing agent do?
This depends on the property they manage, but it generally covers four main areas:
Relationship management: Property managers supported by a wider team will attend residents’ meetings, being the point of contact for residents’ queries and liaising with external contacts such as contractors, insurers, solicitors and accountants. Managing agents often have a lot of in-house experience on leasehold management, property management and associated subjects, and will be able to provide expertise and advice on this.
Financial management: The accounts team working with the property managers will set the budget for the service charge or estate charge (which funds the management of the building/estate), collect the service/estate charge and create the end of year accounts for each development. The accounts will be reported on regularly, plus the wider team will look to set up/maintain a reserve fund for major works and emergencies.
Repairs and maintenance: Ensuring that communal areas such as lifts, car parks and shared green spaces are well maintained, for example, appointing gardeners to cut the grass, sending a lift technician to service the lift or placing signs in the car park. They will also oversee major building works, managing contractor quotes and progress. This is all funded via the service charge or estate charge.
Health and safety: Either a property manager or health and safety specialist will carry out regular property inspections, fire and risk assessments, long term maintenance plans and also place insurance if needed. Managing agents should attend regular training and events to stay up to date with changing legislation and compliance, especially if they are members of The Property Institute which includes Continuing Professional Development (CPD), qualifications and a code of conduct.
We hope you have found this guide useful. We’ve also written about estate charges, service charges and other commonly asked questions. Take a look at the rest of our articles or contact Joe Jobson to talk about appointing us as a managing agent.