How to change your managing agent
Sometimes you just decide, sometimes it takes a process, what is the right route for you will depend on the legal structure of your block.
If you have a tri-party lease (3 parties: the freeholder, a management company then the 1st leaseholder) then you’ll have the right to appoint an Agent of your choice, you just need to talk to the directors on the management committee & propose a change.
If you have a 2 party lease, the freeholder and the 1st leaseholder then you’ll need to
- get the freeholder to agree
- claim your right to manage,
- buy the freehold, or
- or get the Tribunal to appoint a Manager
Understanding how you can be best protected
We recommend that you look for a Managing Agent who is a corporate member of the Association of Residential Managing Agents.
The ARMA provides you better security because all ARMA regulated Managing Agents:
- are subject to the Client monies they hold being inspected by the ARMA
- are required to pay into the Client Money Protection Scheme,
ARMA require their corporate members to hold professional indemnity insurance.
What consultation does a Residents or Freehold Management Company need to do to change Managing Agent?
The Directors of a management company are empowered by the members or shareholders to appoint contractors and the managing agent. There is no need to specifically consult with leaseholders, but it is good practice to do so. The Directors do have a duty of care to the leaseholders and should be satisfied that they have made a safe and reasonable choice, after reasonable due diligence.