Our Option

Option 1 – Full Managed Solution

This means engaging an Estate Manager to manage the day to day running of the Management Company. This is effectively the same solution as allowing FirstPort to take control, other than residents being able to decide which Estate Manager to engage with.

The Resident Directors would be responsible for:

• Engaging an Estate Manager of their choice (after some sort of selection process).
• Overseeing the work of the Estate Manager.

The Estate Manager would be responsible for:

• Enrolling all residents and thereafter manage residents moving in/out.
• Accepting a transfer of residual resident funds from the previous Estate Manager (in our case FirstPort) and the starting accounting position.
• Managing resident funds in trust.
• Preparing a budget for the year, based on an estimate of costs to be incurred (landscaping, insurance, management charges etc).
• Issuing a Service Charge estimate to every resident.
• Collecting Service Charges from residents, including debt-recovery.
• Managing operations (instructing suppliers to undertake work, monitoring the quality of works completed etc).
• Managing property transfer enquiries (primarily from solicitors).
• Managing the MC bank account, receiving payments from residents and paying suppliers as necessary.
• At the end of the year, producing a statement of account, which shows how residents’ Service Charge monies have been spent.

Pros:

• Simple solution.
• Low risk – using a proven team of experts.

Cons:

• Expensive solution – residents are paying an external party.
• Same solution as using FirstPort – no guarantee the Estate Manager will be any better than FirstPort.

Option 2 – Hybrid Solution

This means engaging an Admin Manager to manage aspects of the day to day running of the Management Company, specifically those aspects which residents are unlikely to have the skills to manage initially. Residents could negotiate with an Admin Manager as to how many of these responsibilities might be taken on by the residents. This could also change over time as residents become more comfortable with how each process works.

The Resident Directors would be responsible for:

• Engaging an Admin Manager of their choice (after some sort of selection process).
• Overseeing the work of the Admin Manager.
• Preparing a budget for the year, based on an estimate of costs to be incurred (landscaping, insurance, management charges etc).
• Issuing a Service Charge estimate to every resident.
• Managing operations (instructing suppliers to undertake work, monitoring the quality of works completed etc).
• Managing the MC bank account, receiving payments from residents and paying suppliers as necessary.

The Admin Manager would be responsible for:

• Enrolling all residents and thereafter any changes as a result of residents moving in/out.
• Accepting a transfer of residual resident funds from the previous Estate Manager (in our case FirstPort) and the starting accounting position.
• Managing resident funds in trust.
• Collecting Service Charges from residents, including debt-recovery.
• Managing property transfer enquiries (primarily from solicitors).
• At the end of the year, producing a statement of account, which shows how residents’ Service Charge monies have been spent.

Pros:

• Middle-ground solution.
• Relatively low risk – still have access to a proven team of experts.
• Good opportunity to learn from experts if residents want to take on more responsibility in the future.

Cons:

• Middle cost solution – residents are still paying an external party.

Option 3 – Self Managed Solution

This means doing everything ourselves. There would be no Estate Manager to rely on for those aspects of running the Management Company that residents may not have the skills to undertake.

The Resident Directors would be responsible for:

• Enrolling all residents and thereafter manage residents moving in/out.
• Accepting a transfer of residual resident funds from the previous Estate Manager (in our case FirstPort) and the starting accounting position.
• Managing resident funds in trust.
• Preparing a budget for the year, based on an estimate of costs to be incurred (landscaping, insurance, management charges etc).
• Issuing a Service Charge estimate to every resident.
• Collecting Service Charges from residents, including debt-recovery.
• Managing operations (instructing suppliers to undertake work, monitoring the quality of works completed etc).
• Managing property transfer enquiries (primarily from solicitors).
• Managing the MC bank account, receiving payments from residents and paying suppliers as necessary.
• At the end of the year, producing a statement of account, which shows how residents’ Service Charge monies have been spent.

Pros:

• Inexpensive solution.
• Residents have total control over all aspects of the Management Company.

Cons:

• More complex solution.
• Potentially high risk.
• No pool of experts to easily refer to.