With the number of disputes across the country with property management companies (also known as block managers) rising fast it is getting more common for it to be necessary to end a contract with your property manager due to the terms not being fulfilled.
Not many leaseholders think they are able to change property managers, well they can! Before you change property manager you should ensure you understand the terms of the agreement and your legal rights, get your facts right, ending a contract is very rarely straight forward, especially if one of the parties feels aggrieved by the action. If not, you may be breaching the lease too or could make the situation very tricky.
LevelUP are experienced in assisting leaseholders, Right to Manage and Residents Management Companies in changing management services and lease enfranchisement.
Our quick video on How to Change Manager provides you with a step by step guide, or if you’d rather read the steps below.
- Is there a cause to terminate?
Read the terms, does it require cause in order to terminate the contract, some do not. If cause is required, this will be described in the contract clearly.
- Property manager breach
It would be in your best interest to terminate the contract if the managing agent has breached the terms of the contract. A breach can lead to putting your property and residents at risk, this should not be tolerated.
- Notice period
The contract will specify the notice period required to terminate the agreement, this can range from 30 – 90 days. If you do not abide by the notice period, your request to terminate may result in be ignored or as serious as being in breach yourself.
- Providing notice to terminate
This should always be completed in writing with the date of which the termination will take effect. Do not email and always obtain proof of postage.
- Receive confirmation
The agent should confirm the termination in writing stating the date at which management ceases.
- Notify leaseholders
The leaseholders who pay a service charge should be notified that there is to a be a change in property manager, the current property manager may also do this.
- Handover of funds
At the stage of handover, the agent must handover the balance of funds not required to meet commitments already made, with the balance being handed over with a statement of accounts. The balance should be passed within three months unless otherwise agreed.
- Receive paperwork
The documentation that will be received at handover is that as stated in the management agreement
LevelUP are experienced in assisting leaseholders, Right to Manage and Residents Management Companies in changing management services. Please feel free to contact us for further information at email@example.com