Letting agent wants to become managing agent

[greeneman]

I have a flat in a block of 300 in midland UK. Letting agent seems to have a good number of units for various leaseholders. They do seem to knopw the building well.
They have now set up a company to acquire the right to manage (RTM as they call it). Looks like they will take over the services budget. They seem to be in with the original developer and his agents. Existing management company seems competent. We have had no isues in the three years since start up.

What should I be watching for here ?

Greeneman

 

[Martin77]

Obviously they'll probably have to pay out some cash to set up a company and acquire the Right To Manage. How are they going to fund that and recover those costs? Perhaps by hiking the management fees? Or awarding contracts to related firms they know? I'd check out what rights you have as an owner to become a member of the managing company e.g. so you can challenge any budget hikes. I know a friend of mine was very unhappy with the tricks and fees a (new) managing agent put in place for simple jobs like repairing a TV antenna or maintaining a tiny piece of shrubbery. But on the other hand it could be a real blessing: they could simply be aiming to reduce their own overhead costs for their own properties..... probably worth giving them a call then to try and work out their motivation see http://en.wikipedia.org/wiki/Right_to_Manage