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.
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.