Regulated by RICS

Information

Residential Management

Most of the clients that we manage in our portfolio fall under, what we call "Service Charge Management".

The reason why we call it such is because we work with the Management Companies, which under the Head Lease are the entity which owns and looks after and maintains the common areas of a complex and/or a building and this is done via the payment of service charges by the Management Company’s members, which are all the owners of the complex and/or building. These charges form an integral part of the individual Underleases.

All owners are members of the Management Company and at an AGM, a Committee is elected from the Members. Once the Committee is elected, they meet and discuss items of maintenance and issues surrounding the estate and/or building and decisions on policy or expenditure are made. Our role is then to ensure that these policies and/or works are carried out and all other issues of the day to day running of the estate runs smoothly.

It has to be remembered that all decisions are made by the Committee, since they are the owners of the Management Company and not by us, the Agents. Although we have a responsibility to advice on all matters due to our experience and knowledge of management, the Committee does not have an obligation to abide by that advice.

Committee Members

Committee Members are not remunerated for the time they serve on Council and are governed by the Management Company’s Memorandum And Articles of Association. This document governs the dos and the don’ts of the Management Company and what and how it has to go about its business of running the Company. The Headlease and subsequent Underleases also dictates what the Management Company obligations are and those which the owners are responsible for.

House Rules are also stated in the Underleases, however, the Committee may decide to expand on these with their own additions to these rules at an Annual General Meeting. Council’s Motion may include the approval of these amended House Rules and the Owners will vote for their acceptance and/or rejection of the same. It is also part of the Agent’s responsibility to ensure that the House Rules are adhered to.

The payment of expenditures incurred by the Management Company in respect of maintenance issues such as contracts for cleaning, lift maintenance and other issues which are included in the Service Charge budget is also a responsibility of the Managing Agent as is the preparation of the quarterly financial information (Management Accounts) which is presented to the Committee, so that they are able to be informed of the financial position of the Management Company and thus be able to make decisions regarding the expenditure of the same.

The Agent also has an annual obligation to prepare the Management Company’s accounts for audit and to liaise with the auditor during the audit process. These audited accounts have to form part of the Management Company’s Annual General Meeting Agenda.

Commercial Management

Managing the majority of Commercial Buildings is totally different to managing Residential building and/or complex.

Most of those who occupy the Office Units are not owners but tenants who hold a Rental Tenancy Lease with the Owner of the building and/or owners of the building.

Therefore, Service Charges are payable by the tenant and not the owner and the amount payable is stipulated within the Rental Tenancy Lease.

However, the tenants also pay rent to the Landlord for the period of the Rental Tenancy and this forms part of the Lease, which usually is for a long term with rental reviews every 3 years.

The Managing Agent is therefore engaged by the Landlord to manage both the Rental and the Service Charge elements of the Tenancy Agreements.

Maintenance

There are no Management Companies to deal with and the meetings held is usually with the owner and/or owners in order to discuss any rent reviews and/or other elements of the building. The tenants do not have a say as to what goes on within the building, although they have direct communication with the Agents in dealing with day to day issues and/or any issues within the units that falls under the Landlord’s obligations.

They do not hold Annual General Meetings, although, we normally advise that periodic meetings with the tenants is helpful to ensure that those working within the building are content with the levels of service which they receive.

Negotiations on rents and/or Tenancy Leases is held between the Landlord and the Tenant, although the Agent will be able to help negotiate but it has to be clear that the Agent works for the Landlord.

The Management company is the entity which is responsible for all the common areas of the building/complex and every single owner will either automatically become a member on purchasing or applies to become a member after their purchase.