Do I need a property manager if I own properties through an ARF?

L

Lifeinthesun

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I got notification from my ARF provider that I now need a Property Manager to manage my properties within the ARF. Up to now the tenant paid directly into ARF account, I paid the RTB, and I also looked after the Insurance on the properties but the ARF paid for insurance. Now I must get a property manager, which will cost 8 per cent of rent to take care of the above. The tenant must pay the property manager and fees and payments are taken out each month, balance transferred to ARF. I will have no option but to increase the rent for to compensate for management fee!
My question - is this a legal requirement! Any advice would be appreciated
 
The property is supposed to be on an arms length basis. I'm surprised it was allowed to be managed that way to begin with
 
Fortune said:
The property is supposed to be on an arms length basis. I'm surprised it was allowed to be managed that way to begin with
Click to expand...

As long as the OP had no connection with the tenant she wasn't breaking the arm's length rules. The post suggests that she was doing everything by the book - rent going into the ARF bank account etc.
 
OP, perhaps you could ask your ARF provider why they think you need a Property manager.
Also why it is different to the pension you had it in before (assuming you had it in a pension before the ARF)
Or why you need one now - if you have had it in the ARF for a number of years.
I suspect it is that your provider would prefer this, not that it is a legal requirement.

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