Self-Management for Leasehold Owners. Are you ready?
Updated: Jul 28, 2020
This article focuses specifically on a growing market place for self-management for Apartment blocks of Flats and Estates in the UK. We will focus on the benefits of the Self-Management service (Admin/Finance Management) offered by Bawtrys Estate Management and how this will work for the consumer, including the positives and negatives of taking this route. Whether you are a Right to Manage Company (RTM), Residential Management Company (RMC) or a Landlord, we have a flexible self-management option.
There is undoubtedly a long list of negatives that anyone considering self-Management needs to take into consideration, although it depends on the skillsets of the individual. Self-Management will likely be more appealing to those estates or blocks with fewer mods and cons and fewer assets and equipment to manage.
While this is no extensive list, here is a shortlist of negative considerations;
You must take calls and emails and be willing to give up valuable personal time.
Management can be a pain, and it will bring challenges so be prepared to face hard situations on occasions and sometimes with your neighbour's. You will need to act neutral and fair.
You will need liability Insurance.
You will need to be suitably briefed and understand Leasehold and Landlord and Tenant Laws as well as other regulations depending on what type of equipment you have at your property. Any of the following can come up regularly so you will need to understand S20, S20B, S42 of the Landlord & Tenant Act, including Fire Safety Compliance, to name but a few.
You will need to handle or signpost legal matters such as sales or compliance issues through to debt collection so you will need someone to handle these affairs like a solicitor, accountant or other professions.
Again, while this is no extensive list, Here is a shortlist of positive considerations;
As there will be no Managing Agent fees, you can reduce the cost of the service charges and in turn potentially increase the value of your property to prospective purchasers due to having a low service charge.
You can make decisions faster and handle issues more efficiently in some cases.
Your neighbourhood relations may benefit.
You may look for remuneration for your time.
You can always go back to employing a managing agent.
When employing Bawtrys Estate Management on a Self-Management only basis, you can expect;
A single key contact and liaison, although this would be limited to producing the data we hold for you, such as debtor and account information, or income and expenditure.
Access to a unique file-sharing facility for uploading invoices approved to be paid, accessing critical property financial data, and other essential property documents. Please note that for admin only clients we have a weekly payment run for approved contractor invoices and quarterly financial reporting which is updated to view automatically on a specific day.
The collection of service charges and ground rents.
Preparation of annual income and expenditure accounts pack, to be sent to an accountant of your choice or you may use our accounting services.
Preparation of a yearly budget to be reviewed by the client, issuing demands, and credit control as required.
Manage and maintain an individual client bank account.
Access to all additionally charged services at a benefited rate including but not limited to Company Secretary, Insurance and project management services.
Company and sales administration.
Bawtrys Estate Management does not endorse Self-Management but does understand that there are a growing market place and a requirement for it. A prevalent point that should help determine whether Self-Management is an option worth considering will depend on the individuals involved and what expertise they can offer. Self-Management will be best suited to those with minimal service commitments and assets.
If you are looking for advice or would like to enquire about our Finance/Admin Self-Management option for your Apartment Block or Estate. Please visit our website www.bawtrys.co.uk, Email firstname.lastname@example.org or call 020 8004 2474.
Our Self-Management service is available throughout the UK with no restriction on location.