Leasehold Property Management Services
Leasehold Property
Leasehold property management services are an essential part of a landlord or RMC’s duties and it is important to have a reliable and experienced service provider who will look after your building. They can handle the initial setup of security deposits, collect and deduct these charges when the tenants move out, deal with lettings, cleaning etc. They can also help with dealing with complaints and arranging a meeting at the Tribunal should they be required to do so.
Managing an estate, particularly one with a complex of flats is a difficult task and requires specialist expertise. A good managing agent can take the instructions from a landlord and act in their best interests while looking after the needs of all the individual flat owners.
There are a number of ways in which the management of a block can be affected and this will vary from development to development. If a freehold is owned by a number of people, it is possible for them to set up a residents’ management company which can take on the duties and responsibilities of a landlord. This is a process known as ‘collective enfranchisement’ and it can be very costly to take advantage of, but can be worth doing in some cases.
Leasehold Property Management Services
A leasehold development will usually have a ground rent to pay which is normally demanded and collected by the freeholder and is a specific condition of the lease. In addition to the ground rent, a leaseholder will be required to pay a contribution to cover the cost of maintenance, insurance and management of the building.
The freeholder will also levy a service charge to pay for the maintenance of the external and communal parts of the building. This can include’major works’ at certain intervals and will be billed to the leaseholders in advance. The amount of the service charge will be set out in the documentation that describes the rights of the freeholder and leaseholders, and it can be raised or decreased if it has been agreed by the freeholder or other parties involved.
Many leaseholders complain about excessive service charges and there is a legal right to ask for a summary of how any service charge has been calculated and spent. If a landlord cannot provide you with a reasonable explanation, you can issue proceedings against them at the Residential Tribunal (RTT).
As a leaseholder, you can object to any proposals to change the service charge or the way it is set up. It is advisable to seek the advice of an independent legal expert before deciding to challenge any proposals.
You may be able to challenge the service charge as an individual, if you have not already done so, but this will come at a cost and it is therefore best not to attempt to do so without careful consideration of your options. A RTT hearing can be a long and expensive process and you may not get the results you want.