First residents association meeting

Kinetic^

We had our first residents meeting last night and the general feeling of things was that we were not happy with our management company. I suggested that after our initial year we set up our own company, in order to bring the management fees down.

I was just wondering if anybody had any experience in doing this, good or bad.

MorningStar

My experience is mixed. First off getting rid of an overpriced management company makes good sense. The problem is many people have no business understanding and expect unrealistic things.

I have been involved with such groups as a resident and as a landlord. Personal snipes get made by certain types of people. Lots of complaining about who is making a mess of the halls or noise (the biggest issue by far). When big jobs come along like the roof needing replacing petty bickering doesn't stop but gets worse.

Believe it or not a management company isn't really the problem it is people. Just read this site when somebody feels wronged but other people put logical reasons why they aren't.

You are probably in a better finacial situation but that doesn't mean it isn't hard work. I would prefer to have a resident assco. but I would try to focus on being a facilitator of action and try to resist any arguments and focaus on vote as quick way to resolve issues.

You can't just 'replace' the Management Company - remember they own the freehold in the common areas as well as the reversion on the lease ie. when the apartment/house lease expires in, say 999 years time, theoretically the Management Company becomes the owner. So it is built in to your title. It could be done with a few legal documents if the Management Company agrees to do it, otherwise tough.

MorningStar

You certainly can replace your managment company. Not sure what is involved anymore but it can be done. I also thought the leasehold was with the landowner not the management company. Any clarity from anyone?

Borzoi

MorningStar wrote:

You certainly can replace your managment company. Not sure what is involved anymore but it can be done. I also thought the leasehold was with the landowner not the management company. Any clarity from anyone?

I would imagine that the OP would be referring to replacing the management agent (ie Wyse, KPM) who acts on behalf of the management company which actually owns the common areas and is responsible for them, and which in turn is owned by the individual apartment/house owners

Kinetic^

Borzoi wrote:

I would imagine that the OP would be referring to replacing the management agent (ie Wyse, KPM) who acts on behalf of the management company which actually owns the common areas and is responsible for them, and which in turn is owned by the individual apartment/house owners

No I'm actually talking about the residence setting up a compnay limited by guarantee and us handling the funds,payments etc.

MorningStar

MorningStar wrote:

You certainly can replace your managment company. Not sure what is involved anymore but it can be done.

That's exactly what I said. It can be done...if the Management Company participates and transfers the freehold reversion and common areas over.

In any other case, barring litigation, forget it. There is such a thing as the constitutional right to property, and once the common areas and freehold reversion are owned by the management company, no amount of tenants meetings or wishing otherwise can undo that.

MorningStar wrote:

I also thought the leasehold was with the landowner not the management company. Any clarity from anyone?

In theory and in good practice you are wrong, once the development is complete and the first general meeting held the developer transfers everything over to the management company. The landowner has of course no interest in listening to problems when he has made his money out of the sales, and he may not be around forever either. Hence the system, in theory, works so well.

Unfortunately in practice it is not always as neat as that.

Victor

Keyser Soze 69 wrote:

No I'm actually talking about the residence setting up a compnay limited by guarantee and us handling the funds,payments etc.

The management company already does this, there is no need to duplicate or replace it.

Waht oyu may need to do is replace the directors and the management agent, but be aware that this brings its own costs and problems (bickering with your neighbours instead of bickering with the management agent).