In case you were wondering how the new setup between Haus BM and BPRA will work, here are some frequently asked questions answered by our brilliant volunteer Jodie.
We are looking to set up a ‘Resident Management Company’ (RMC) who will then appoint Haus as our professional managing agent. I have answered some FAQ’s below around this process and also attached the financial details document and other FAQ document we created.
I hope this is of help, if you have any further questions please do get in touch.
Many thanks
Jodie
What is a Resident Director?
Resident Directors are members of their development’s Resident Management Company (RMC). They’re volunteers who are appointed by their fellow leaseholders/freeholders to help manage and maintain the buildings and common areas, as well as ensuring compliance with the obligations of the deeds or lease for each home. They decide how best to achieve this, either by self-managing or, in most cases, by appointing a professional managing agent.
RMCs are usually set up to protect the interests of everybody living in the development.
The RMC consists of equal members or shareholders, who are typically leaseholders at the development. They use their skills to work together in making decisions that will benefit the whole development.
How do Resident Directors support their community?
They work with the property manager to make sure that their development is a secure, clean and nice place to live.
As well as the general upkeep of their building and private communal areas, they make decisions that will benefit the entire community. They oversee how service charges are spent to look after the development, as well as creating plans for the future. Crucially, every Resident Director also has a duty to comply with a range of health and safety regulations that protect everyone at the development.
What responsibilities do Resident Directors have?
A strong group of Resident Directors are responsible for the success of any RMC, but as an RMC is limited company, all Resident Directors have legal responsibilities that need to be upheld which include:
Maintain all statutory records, and report any changes
Keep an accurate record of the RMC’s finances
Ensure they are compliant with all relevant laws and regulations
Ensure they have the right insurance, to protect themselves and the development
What is a property manager?
As RMCs usually consist of leaseholders at the development, they may not know the detail behind landlord and tenant laws and/or health and safety regulations.
RMCs will often employ a professional property manager to help oversee the running of the development. Applying their expertise, they help to fill any knowledge gaps within the RMC to make sure nothing is missed, and that the community is a great place to live.
How will Haus help?
Haus work with many RMCs to help them manage their developments. They understand what we need to help you meet our legal and management obligations.
They will…
- Ensure health and safety, fire risk assessment and asset compliance
- Conduct regular site visits to assess performance
- Manage repairs, maintenance and major works
- Issue service charge budgets and accounts and process payments
- Ensure appropriate key insurance is in place
- Provide financial and management information via the online portal
- Act as Company Secretary
What are the reasons for changing managing agent?
The reasons for seeking to move managing agent is to provide all those owning a home in Bexley Park greater control over how service charge income is spent.
The proposal to move to HAUS involves setting up a formal resident association via companies’ house who then appoints HAUS. This means if HAUS underperforms, they can be removed by providing notice and a new agent can be appointed. By having a range of resident directors from across the development we hope to see a real tangible improvement in communication, turnaround of repairs and ensuring the development is maintained and serves the residents that pay the service charges.
This way of appointing a managing agent is how newer build developments are now established. It is a fairer and more transparent way of operating. Currently FirstPort decide how the charges are spent and rarely consult with residents as to whether the expenditure is wanted, needed or perhaps there is an alternative option that would be cheaper and preferential.
Who are HAUS Block Management?
HAUS Block Management are an independent Managing Agent based in East London managing over 300 sites across London. They employ 75 staff and are privately owned. They are not owned by a large investment fund, and do not work with developers or commercial freeholders.
Over the 12 years they have been operating, they have helped over fifty groups of residents and Residents Associations take over the management of their developments. Usually this is through a process called Right to Manage or by purchase of the Freehold.
We would encourage you to take a look at HAUS’ online reviews from current developments – they are favourable, and we believe a smaller independent managing agent will look after our best interests rather than a large corporation like FirstPort.
What’s the cost differential and assumed service improvements?
FirstPort are not known for their customer service, we are proposing we move to HAUS who have favourable reviews online and are a smaller business – we believe they will provide a much better service than FirstPort who are barely even contactable at times.
Currently, the cost comparisons have been between managing agent fees only. This is because this is the focus of the change, we want to see value for money. HAUS’ fees are cheaper than those of FirstPort.
We have assumed all other charges will initially remain the same as we will transfer the service providers when we move managing agents e.g. the gardening contractor will still provide the maintenance and charge the same as they were before.
We will see changes elsewhere in the service charge bills as and when we begin to change providers, make improvements or savings depending on what the resident directors deem to be a priority for the development.
What is the role of a resident Director and how are they chosen?
Resident directors are not paid, it is a voluntary role that anyone owning a property on the development can sign up for. We hope to see approx. 12 directors with good representation across all areas of the development.
The appointed group of resident directors will work with all residents to ensure they are representing the developments wishes wherever possible.
Directors must have a majority agreement when approving expenditure. The directors will hold HAUS to account and equally HAUS and the appointed property manager will hold the resident directors to account also.
How will I be canvassed for my views on the development?
Residents will have the opportunity to meet with the managing agent on a minimum annual basis but we hope this will be more frequent to share their views.
Residents will be able to contact our appointed and named property manager by phone/email to raise any issues or concerns for the development. They will then share this info if appropriate with the resident directors.
We hope that resident directors will take an active role in speaking with their neighbours to ensure they are happy with the service and can pick up on any issues early on. We hope to continue with quarterly newsletters and remain active on the NextDoor app/website.
If you have any questions not answered above, please email committee@bp-ra.co.uk. Thank you
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