4 Common Issues That Resident Management Companies Face and How to Avoid Them
In June 2023 Connect UK Auctions looked at the difficulties facing resident management companies (RMCs). It noted that leasehold homes make up an estimated 20% of English housing, close to 5 million properties, and that many blocks are run through such companies, which are governed by a board of long leaseholders.
The first issue it identified was disagreement over maintenance and repair costs, which can strain relations between directors; it suggested allowing enough time for decisions that everyone accepts. The second was day-to-day management, because directors often have other jobs and cannot always be present to meet contractors or check work, so many appoint a managing agent.
Third was poor transparency and communication, given the complexity of finances and legal compliance; the article advised a single dedicated contact for residents and directors, who could be a leaseholder or an agent. Fourth was neglecting pressing matters such as major works or out-of-date insurance, which a general meeting can help to resolve.
