A Management Company is a legal entity which has been established to administer the communal areas of multi – unit developments. Specifically, its primary function is to ensure that all communal areas within the development are maintained to a high standard as a means of preserving the commercial value of that development.
The Management Company will therefore be responsible for maintaining:
The provision of these communal services is financed by service charges, which are paid annually by unit owners.
It is general practice within the industry that a Management Company is established by the developer at the start of any multi – unit development. In its nascence, the Management Company is comprised solely of a board of directors who have been appointed by the developer. Once all the units have been sold, the developer will then transfer complete ownership of the communal areas to the owners. The Management Company is now comprised of members, who are owners of the units and a board of directors, who are elected by the members.
As the management of common areas is a time consuming process which often requires specialist expertise, Managing Companies will often employ Managing agents, such as Qualitas Property Partners Ltd. to administer the work on its behalf.
Managing Agents are professional firms which are specialists in the organisation and provision of all services required by the Management Company. Managing Agents are employed by the Management Company and therefore work under its instruction.
It is common practice for a Managing Agent to be appointed by the developer upon completion of the development. In the event of appointing a new Managing Agent, the Management Company will initiate a formalised tendering process to which prospective Managing Agents can bid. The successful Managing Agent will be selected by majority vote during a Board meeting.
The legal basis upon which the Management Company and the Managing Agent are bound is their written contract. Accordingly, the resolution of any disputes is premised on this contract.
Typical responsibilities of the Managing Agent include:
The task at hand is considerable and requires a high level of experience and knowledge in the Property Management industry. Property Managers must demonstrate professionalism in all matters and employ a fully qualified team of contractors who can implement the works needed.
It is crucial that Managing Agents have the appropriate insurance cover in place (e.g. Professional Indemnity, Directors’ & Officers, Professional Liability) and act in accordance with the statutory requirements for health and safety in all its operations.
Please feel free to contact us with any questions, comments or suggestions you may have.