If you're a leaseholder frustrated with your managing agent and looking around at your options, here's five questions to ask any prospective managing agents to ensure that you get the best deal for your residential block.
1. Insurance
Does the managing agent obtain sales commissions on insurance premiums?
Managing agents typically take a sales commission on arranging insurance for the blocks of flats that they manage. The agents will give leaseholders no say in which broker through which they choose to arrange the premium. As a result, the agent can go to whichever broker is willing to give them the largest slice of commission - in return for handing them the business in the first place - and the leaseholders are left to foot the inflated bill, even though there is cheaper like-for-like insurance freely available.
With block administration services, however, it's the leaseholders who make the final call on who provides insurance. This cuts out the middle man managing agent and consequently the sales commission, and typically results in a 50% reduction in premiums for the block. With block administration services, regardless of which broker is contracted, no sales commissions are taken at any stage in the process.
2. Contractors
Who decides the contractors that work on your block?
As with the insurance example, managing agents select contractors to do work on the blocks that they manage based only on the basis of how much commission the contractor is willing to pass back to them. Worse still, sometimes agents will only sub-contract companies to which they are related, some of which operate from the same offices! Again, this is a cynical ploy to make sure leaseholders' money remains in the loop. With block administration services, leaseholders are free to select contractors, and are provided with a database of prospective contractors ready to provide competitive quotes in order to save leaseholders the trouble of searching themselves.
Again, with block administration services, it's the leaseholders who make the final call based on the competitiveness of the quote and quality of service provided, rather than the slice of commission available - no sales commissions taken along the way.
3. Disbursements and admin fees
How many additional charges could you be incurring?
Another way in which managing agents attempt to secure a steady income stream is by charging for so-called 'disbursements' and admin fees. Ask them how much they charge for sending a letter, accepting alternative methods of payment, even receiving phone calls!
With block administration services, there are no additional admin fees, just a flat rate management charge for the year, and any disbursements are charged at face value and no more - a stamp is charged at the price of a stamp.
4. Transparency
Will you be charged if you wish to see contractors' invoices?
Most managing agents will automatically pay contractor invoices on behalf of a block without consulting the directors of the management company. If the directors wish to see the invoices at a later date, the agent will either charge them for the trouble, or insist that they come round to their offices in person.
With block administration services, directors' approval is always sought before contractors invoices are paid, to ensure that the directors are happy with the work that has been done. Additionally, leaseholders have access to every invoice that has been paid whenever and wherever they want it through their secure Block Website.
5. Termination of contract
What happens if I wish to terminate my contract with my managing agent?
As you might have noticed by now, managing agents like to make what they can from their clients, despite their services commonly falling short of leaseholder expectation, or worse leaving leaseholders wondering what, if anything at all, they actually get in return for their service charge. And the story is no different when it comes to terminating your contract. Typical agents will dig their heels in, demand up to twelve months' termination notice and may also charge a termination fee equivalent to three months' agent fees.
With block administration services, termination is transparent, fast and client-friendly. Only one month's termination notice is required, and no termination fee is charged.
Click here for more information about block administration services.
About Urban Owners.
Urban Owners is the pioneering provider of block administration services. Our innovative mix of sophisticated web-based communication and administration tools, professional guidance and onhand support puts leaseholders in control of their block, reducing service charges and improving the services to the block.
We specialise in assisting leaseholders with the management of their block, providing them with the level of support that they choose; from complete outsourcing to Urban Owners to selfmanagement using our tool set and advice.
We have a nationwide portfolio of blocks and groups of houses, all of whom have profited from our flexible service and accessible, up-to-the-minute software. With a team comprised of seasoned property professionals, we ensure that as new methods and legislation emerge, we are right on top of them, so that our clients can always count on receiving the most forward-thinking service on the market.
Article Source: http://EzineArticles.com/?expert=Charlie_Davison
