The fact that you are reading this page shows you realise the importance of paying attention to the management of your development. Since 2004 planning regulations required developers to make arrangements for communal areas to be cared for “in perpetuity” and in most cases this is done by making each property owner a shareholder in a limited company that owns the shared spaces and is responsible for maintaining them. It is commonly referred to as a “management company” or “residents management company” and the shareholders are responsible for appointing a suitable managing agent to carry out the services and administration on their behalf.
After years of stagnation the housing market is now starting to rise [click here for latest house price index report] and a long overdue building boom has created an abundance of choice for first time buyers. So it is now extra important to ensure your Resident Management Company (RMC) is delivering in the following key areas:
This should be the average for the area – too little and a buyer will suspect shortcuts are being taken, too much and he may be put off. A budget should be produced annually that clearly shows what the service charge is being spent on and should include a reserve fund for future large items of expenditure such as replacement lift parts or painting.
This is easy to assess, particularly during the growing season when a good schedule of maintenance will be most evident. There should be provision for future refurbishment or improvement of landscaped areas – shrubs and fences don’t last forever!
This is the part you can’t easily see and may only come to light at the later stages of the selling process. A professional managing agent will understand and refer to the terms and conditions set out in the deeds so you can rest assured that any queries that arise during the conveyancing process will not derail or diminish your sale.