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How To Keep Your Managing Agent Productive
In today's rapidly changing leasehold world, it's more important than ever for Residents’ Company Directors to have a good system for managing the managing agent and the individual property manager for their building. Below are some tips on How to Keep Your Managing Agent Productive, motivated and focused ….. just like us at Casserly Property Management.
1. Good Leasehold Knowledge
Make sure you and your Board of Directors have a good working knowledge of current leasehold law, leasehold procedures and leasehold practices. You’ll then be in a good position to ensure your managing agent, and your individual property manager, do the right things at the right time in the right way. Leasehold is a changing world and you need to ensure you understand the changes which are coming, those which have arrived, and how they affect your role as a resident director ..... and the roles of your managing agent and property manager. Understanding the territory is key to success.
2. Employ the Right Managing Agent
Managing Agent firms come in all sizes ..... from the one-man band ..... to the large corporate giants managing tens of thousands of properties. The former is more bespoke and personal in delivery. The latter has a wide range of specialist resources and talents. You need to find and employ the right size and type for your property.
And within the firm there will be property managers of all ‘sizes’ – from the newbie enthusiastic youngster – to the older experienced veterans. But as important as knowledge and experience are ..... you need a property manager that you like and get on with. It is important that you have a good working relationship ... friendly but professional and business-like.
Getting the right person AND the right company often takes a good deal of research and ‘interviews’ ..... but all that hard work and time will save you much more time later.
3. Define Clear Tasks and Expectations
The managing agent is, as the name suggests, an agent. Their role is to act on your behalf – following your instructions and decisions – decisions based upon the professional advice and information provided by them. YOU need to ensure they provide you with the right advice on the right subjects at the right time.
It is therefore important that everyone understands – the property manager and the Board of Directors – what tasks are their responsibility and the timeframe within which they are to be achieved.
Dividing those tasks into short term, medium term and long term helps to ensure progress is made.
Short Term > by the time we meet next,
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On-going repairs and maintenance.
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Financial: income and expenditure budget/actuals.
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Minutes and actions arising therefrom.
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Reports for next meeting.
Medium Term > within this service charge year ... or within 12 months,
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Major works / projects for completion this year.
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Financial: income and expenditure targets ..... this year and next.
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AGM minutes and actions – and next AGM agenda/actions.
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Director succession planning.
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Property manager succession planning.
Long Term > within the foreseeable future,
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Major works diary – by project, by year.
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Financial: reserve funds - by project, by year.
4. Have Realistic Agreed Timetables
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Budget > two to one month before new service charge year.
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Demands > upon the dates detailed in the lease.
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Income and Expenditure > variance reporting (budget vs actual expenditure).
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Accounts > within six month of the service charge year end date.
Company Dates
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Confirmation Statement > date specified by Companies House.
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Financial Year End > date specified by Companies House and HMRC.
Pro Tip > Co-terminus
If your service charge year end and your company year-end are not the same – move the company year end to match the service charge year end. Extending or shortening the current financial year, to a date co-terminus with the service charge, means the accountants can do one exercise each year, not two - saving both costs and time.
5. Annual Management Agreement
Having an agreement with your managing agents which lasts for one year and no longer, achieves several things.
Firstly, it avoids the worry of section 20 expenditure limitations and the need to consult on “long-term expenditure” costing any one leaseholder £100 or more.
Secondly – and we think more importantly – it provides a regular review of performance, whether good or bad.
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Good job > new agreement (renewed - not rolling monthly).
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Bad job > natural end > out with the old, in with the new.
With a fixed term agreement the property manager (and managing agent firm) have twelve months to achieve and prove their worth. They start the year with a set of tasks – and they have a limited time to show their client progress and successful completion of each task. Towards the end of the year, both sides will know if progress has been made ... or not. Both sides will know where the responsibility lies for that performance. Both sides will know whether success is to be rewarded with a new agreement for a new year – or not, as the case may be.
In Summary ...
Regularly reviewing this guide on How To Keep Your Managing Agent Productive will help you ensure your managing agent and property manager are productive. A quick monthly or quarterly check of the areas above, will keep things fresh in your mind – and will allow you time to tweak or re-start before too much time is lost.
It will also ensure you have a correct balance of now, soon and sometime. Working a little bit on each, regularly, will result in productive success ..... for you, your board, your managing agent, and ..... most importantly ..... your fellow leaseholders.
With regular attention, you can get your Property Manager and Managing Agent firm to be as productive and efficient as we are at Casserly Property Management. And if you have any questions or would like a little more guidance on this topic or any other, do take advantage of our free, no obligation consultation. You can book a convenient date/time using the button, below.
Best wishes,
Paul
Paul Casserly
Casserly Property Management
P.S. If you've found this article interesting, informative or useful in any way, please share it using the following links. And I'd love to hear your thoughts, as well. Just leave your comments below. Thank you.
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