WHAT IS A MANAGEMENT COMPANY?
Due to complexity in the nature of developments, a Management Company is incorporated to provide a structure to ensure the required level of services are provided for the day to day operation of a development. All the common parts and services, be they internal, external or structural, are vested in the Company. The Company in turn has a responsibility to all members to maintain services and common areas to a required standard. On purchase of a property, the new Owner is obligated to become a member of their Management Company for the development.
In recent years it is seen as the normal course of planning that a developer would incorporate a Management Company to ensure their schemes are efficiently managed. The Management Company itself is a separate entity from the Managing Agents. The Management Company is managed by a Board of Directors (normally the Developer) until all units are sold in the development and the handover to the owners is complete. At this stage, when control of the Company has been passed to the owners they elect their own Board in accordance with the terms of the Memorandum & Articles of Association of their Company. In effect the Management Company is owned by the unit owners as a collective group, who in turn determine the level of service necessary for their development, normally aided by a Managing Agent.
This Management Company is responsible for the maintenance of and services to both internal & external common areas in order to preserve the value of the property as a whole and to ensure that the owners and occupants benefit from the full enjoyment of the common areas. The Management Company is essential in the proper legal and day-to-day running of any development of multiple units whether they are apartment blocks, houses, mixed developments, office blocks etc.
The full responsibilities of each individual Management Company are specified in its Memorandum & Articles of Association
The owners also have obligations to their Management Company, such as timely payment of service charges and compliance with house rules, as set out in the terms of their legal documents that are entered on purchasing their property. The divide of service charges is strictly determined by these legal documents
WHAT ARE MANAGING AGENTS?
Managing Agents, such as TM properties are usually engaged by the Developer on behalf of the Management Company.
At the early stages of development, the Managing Agent provides assistance to the developer in dealing with items such as planning permission documentation (relating to the property management aspects – for example, suggestions for refuse bin locations). Other standard services would include preparation of the service charge budget and apportionment for common area maintenance (based on quotations for services such as refuse, insurance, cleaning, lighting, landscaping etc), together with issuing of information packs to owners as sales complete.
Initially, the Managing Agents role is to deal with the paperwork/administration arising from adopting new owners into the Management Company as sales close and issuing the relevant information packs.
Once the handover of the development to the owners has occurred the owners elect their own board of directors/shareholders. If the Board of Directors/Owners do not wish to undertake the full responsibility and management of the Management Company they then retain the services of the Managing Agents.
The service provided by TM Properties can be tailored to suit the specific requirements of individual Management Companies as set out in their legal documents.
The following schedule of services can be provided:
The service charge budget is prepared annually and is based on quotes received at the time of agreeing the budget. The budget figures vary from year to year and will be influenced by historical costs incurred by the Management Company together with the decisions made by the Directors of the Management Company as to the requirement or otherwise to retain certain services, create additional services and/or drop services as deemed necessary by the owners. It is our intention to maintain the figures in the service charge budget at a competitive level in so far as is possible.
Specific separate current & deposit bank a/c’s are set up in the name of the Management Company, through which all receipts & payments pass.
In addition to the above services, Tarpey Maloney Properties provide a Secretarial Service (charged for separately in the budget), under which the following services are provided:
Services which are subject to charge outside the normal scope of the annual Managing Agents fees include: