In the world of property management, particularly in residential settings, understanding the various entities involved can be quite challenging. Among the key players are Residents Management Companies (RMCs). But what exactly is an RMC, and what role do they play in managing residential properties?
This blog aims to address commonly asked questions, shed light on relevant legal frameworks, and highlight the advantages of working with a professional managing agent like Red Brick Management.
What is a Residents Management Company (RMC)?
A Residents Management Company (RMC) is a legal entity set up to manage the communal areas and services of a residential development. They are often created as part of the lease agreement and can consist of homeowners and leaseholders who collectively take responsibility for the upkeep and management of their development.
The primary purpose of an Residents Management Company is to manage and maintain the common areas and shared facilities of the property, such as gardens, hallways, and parking areas. RMCs ensure that the property is well-maintained and that the residents can have a say in how the property is managed through the appointed Directors, who are often residents themselves. Those Directors are involved in the preparation of the annual budget and making decisions on behalf of the leaseholders. Their appointments are often voted in at an AGM or following the conditions of the Articles of Association.
What is a Right to Manage Company (RTM)?
A Right to Manage (RTM) company is another type of management company, introduced and governed by the Commonhold and Leasehold Reform Act 2002. The Act grants leaseholders the statutory right to take over the management of their building from the landlord without having to prove any fault or negligence on the part of the existing management. This process is known as the Right to Manage.
While both RTM and RMC aim to manage and maintain residential properties, they differ mainly in their formation and purpose. A Right to Manage Company is specifically created to take over management from an existing landlord or managing agent, whereas a Residents Management Company is typically formed at the inception of the residential development or later by residents themselves.
What is a Managing Agent?
A managing agent is a professional company employed to handle the day-to-day management of a property or development on behalf of an RMC or RTM. Managing agents like Red Brick Management have the expertise and resources to manage various aspects of property management, providing a range of services from handling maintenance issues and financial management to ensuring compliance with relevant legal and regulatory requirements.
Red Brick Management, for instance, have a dedicated team of qualified property managers who oversee a portfolio of over 250 properties across the home counties. Our role includes everything from routine maintenance and emergency repairs to financial management and regulatory compliance, providing peace of mind to property owners and residents alike.
What Does a Residents Management Company Do?
A Residents Management Company undertakes various responsibilities to ensure the smooth running of a residential development. These duties include maintaining communal areas, organising repairs, managing finances, and ensuring compliance with legal and safety standards. The RMC acts as the main point of contact for residents regarding communal matters and oversees the implementation of decisions made by its members.
The goal is to ensure that the property remains in good condition and that the living environment is safe and pleasant for all residents. A Residents Management Company may also handle financial aspects such as collecting service charges and managing budgets for communal expenses.
Roles and Responsibilities of a Residents Management Company
The Residents Management Company has several key roles and responsibilities, including:
- Maintenance and Repairs: Ensuring that communal areas are well-maintained and that repairs are carried out promptly.
- Financial Management: Collecting service charges, budgeting for maintenance and repairs, and ensuring funds are appropriately allocated.
- Compliance: Ensuring the property complies with health and safety regulations, fire safety laws, and other legal and regulatory requirements.
- Insurance: Arranging appropriate insurance for the property.
- Decision Making: Acting as the democratic decision-making body for the management and maintenance of shared areas, organising meetings with residents to discuss and make decisions about property management.
- Communication: Acting as a liaison between residents and service providers to address maintenance and service issues.
Why Use a Managing Agent?
Instructing a managing agent offers several advantages for RMCs and RTMs. Professional property managers bring expertise, efficiency, and a range of services that ensure all aspects of property management are handled effectively and in compliance with legal requirements. This allows the Residents Management Company to focus on decision-making and strategic planning, while the managing agent deals with the day-to-day operational and administrative tasks that come with managing a property.
What Does a Managing Agent Do?
A managing agent like Red Brick Management will take on the responsibility of property management on behalf of a Residents Management Company. This includes handling duties such as:
- Organising and overseeing maintenance and repair work
- Ensuring compliance with health and safety regulations
- Liaising with residents to address their needs and concerns, and resolving disputes
- Ensuring the property is maintained to a high standard
- Complying with lease agreements and property law
- Maintaining accurate financial records and preparing annual accounts
- Managing contracts with service providers and ensuring their work is carried out to a satisfactory standard
What are the Benefits of Using a Managing Agent for Your Resident Managed Development?
Working with a professional managing agent like Red Brick Management offers several benefits, including:
- Expertise and Experience: Managing agents have extensive knowledge and experience in property management, ensuring high standards and regulatory compliance.
- Time Savings: By delegating routine management tasks to professionals, RMC members can save significant time and effort.
- Efficiency: A streamlined management process ensures tasks are completed promptly and correctly.
- Compliance: Managing agents ensure that the property complies with all relevant laws and regulations, reducing the risk of legal issues that can come with hefty fines and penalties.
- Cost-Effectiveness: Professional management can help save money in the long run by avoiding costly mistakes and ensuring competitive pricing for services.
- Peace of Mind: Knowing that experienced professionals are handling property management provides reassurance to both property owners and residents.
- Dispute Resolution: A managing agent takes the hassle away when it comes to disputes related to the property by ensuring a fast, fair and efficient resolution of disagreements through timely intervention, impartial mediation and legal expertise to maintain resident satisfaction.
How Red Brick Management Can Help Resident Managed Developments
Red Brick Management are property management experts with over 40 years of combined experience and a portfolio of over 250 properties. We specialise in supporting Residents Management Companies, providing a comprehensive range of services to ensure properties are well-maintained and compliant with regulations at all times.
With in-depth local market insights and up-to-date industry knowledge, our qualified property managers provide bespoke solutions that are tailored to meet the needs of RMCs.
By taking on the responsibilities of property management, Red Brick Management provides RMCs with peace of mind, knowing that their property is in capable hands. This personalised approach not only saves time and hassle but also ensures that the property is managed to the highest standards and remains a safe and desirable place to live for residents.
Ready to streamline the management of your residential development? Contact Red Brick Management today to learn how our expert team can support your Residents Management Company with professional, efficient, and comprehensive property management services.
Speak to our team on 01438 303333 or [email protected] for more information about our residential property management services!
