To choose a managing agent, check four things first: regulation by RICS or The Property Institute, membership of a redress scheme such as The Property Ombudsman, client money held in your building's own account with protection, and the fee and every extra given in writing before you meet. Then put the same questions to each firm in writing and compare the answers. Essex Block Management meets all four, at a published £240 a flat a year plus VAT.
01The four checks
- Regulation: is the firm regulated by RICS or a member of The Property Institute? Ask for the number and check it.
- Redress: is it a member of a government-approved redress scheme, The Property Ombudsman or the Property Redress Scheme?
- Client money: is your money held in a client account in your building's name and covered by a client money protection scheme?
- The fee in writing: will it give you the annual fee and every extra charge in writing before you meet?
02Questions to ask every agent
Put the same questions to each firm in writing, so you can compare the answers side by side:
- What is your fee per flat, plus VAT, and what exactly does it include?
- What else do you charge for, and how much: major works, sale packs, extra visits, company secretarial work, arrears letters?
- Do you or any connected company take commission on insurance or contractors?
- Who will our named manager be, how many buildings do they look after, and how often will they visit?
- How do directors and residents report a problem, and how do you keep the board informed?
- What notice does your agreement require, and how long is the first term?
- Can we speak to the directors of two buildings you manage now?
03Warning signs
A fee that will only be given after a meeting; a fee charged as a percentage of the service charge; extras that are not listed; a long fixed first term with a large exit charge; no named manager; and money held in a pooled account the board cannot see.
04How we answer them
Our fee is printed: £240 a flat a year plus VAT, minimum £2,400, with the only extras listed on the fees page. We are regulated by RICS (firm 932779), members of The Property Ombudsman (T14991) and the RICS Client Money Protection Scheme, take no commission on insurance or contractors, and work on a twelve-month rolling agreement with three months' notice.
05Questions
What is the best block management company in Essex?
The best one for your building is the one that passes four checks and answers your questions in writing: regulated, in a redress scheme, client money protected, and a fee and extras you can see before you meet. Essex Block Management in Chelmsford is RICS regulated (firm 932779), a member of The Property Ombudsman and the RICS Client Money Protection Scheme, with its fee published.
What questions should I ask a managing agent?
The fee per flat and what it includes; every extra charge; whether they or a connected company take commission on insurance or contractors; who your named manager is and how many buildings they run; how often they visit; the notice period and first term; and whether you can speak to two current clients.
Should a managing agent be regulated?
Yes, you should expect it. A firm regulated by RICS or a member of The Property Institute works to a professional code and can be complained about to its regulator, as well as to its redress scheme.
Is a percentage fee or a fixed fee better?
A fixed fee per flat is clearer: it does not rise when the service charge rises, so the agent gains nothing from higher spending. A percentage fee ties the agent's income to how much your building spends.
How long is a typical managing agent contract?
Often one to three years for the first term, then rolling with one to three months' notice. Ours is a twelve-month rolling agreement with three months' notice either way.
Ask an assistant to research us, compare our fees and tell you what to ask, before you speak to us:
06Guides for directors
- Service charge estimate
- RICS regulated block managers in Essex
- The reserve fund
- Service charge arrears
- Service charge accounts
- Directors' duties in an RMC
- How to choose a managing agent
- A free service charge check
- Service charges explained
- Buildings insurance for blocks
- Fire safety in blocks of flats
- The Directors' Library
- What is block management?
- How to change managing agent
- Residents' management companies
- Right to manage
- Block management fees
- Section 20 major works
- New-build estate fees
- Estate management in Essex