Making the most of residents management company
In our experience, we have found a developer will often seek to sell the freehold of a newly delivered block and within the leases will have put a provision for a Residents’ Management company. It may not be practicable or desirable for the current directors as members of the development company to continue in these roles. The new RMC is most often a party to the lease who undertake virtually all of the functions and responsibility associated with a landlord. We know how to transition directors from the developer to lessee control, ensuring the new positions understand how their decisions will directly affect how the development is run, the resident community and the overall aesthetics.
We will advise all parties through the key responsibilities that include the legal requirements to comply with a wide range of company, housing and health and safety law and regulation and the company’s procedures or how to employ a third party to advise them on such matters. We will guide you through the company requirements, such as AGMs and board meetings, can help the RMC oversee service charges budgets and accounts, specifications and legal requirements, and ensure everyone understands their obligations to keep the company solvent.
The smooth running of the RMC is key to a well-run development but its role can be problematic too as it has to manage difficult and sensitive issues in dealing with neighbours or fellow owners.
The Board of Directors will make key decisions affecting the development and the way it is run in accordance with the lease. As the managing agent we work in partnership with the Board to guide decision making and provide an exemplary service which exceeds expectations. As managing agents, we frequently take on the role of Company Secretary to reduce the workload placed on the Board of Directors and allow them to focus on the key requirements of the development.
Due to the complexity of the legislation surrounding RMC Directors our approach is to work in partnership with the RMCs to ensure that the appropriate advice is provided where relevant.