Q: Poor Performance

Poor Performance Q : I continue to confront the employees of our managing agents with evidence of their poor performance. The root of the problem is their total reliance on sub-contractors to deliver services without supervision or follow up resulting in irregular basic services and poor standards. Following a recent visit to their head office I have finally been able to get a list of leaseholders who pay service charges and a copy of the management agreement between the two companies. There is a problem with the management agreement. They admit that they were given the job some 10 years ago and cannot locate any signed documentation. They have provided me with the standard ARMA management contract that can be downloaded online, with the names of the parties inserted but no signatures. There seems to be no schedule of property services to be provided beyond admin functions. As there appears to be no agreement in place does this mean this company has no legal basis to charge leaseholders anything and that leaseholders now are entitled to either start from the beginning to set and enforce standards or even appoint another agent? FPRA Committee Member Mary-Anne Bowring replies: There may be a contract by performance, their fee could be construed to be agreed in the initial budget, but this begs the question how or on what basis it has been reviewed since. It depends on your legal structure as written into the lease what you can do next. It appears that you have a management company, perhaps you could become the directors and appoint your own choice of managing agent. Or, you should write to the freeholder with evidence asking them to appoint your nominated agent [Submitted June 2019]

Q: Poor Performance

Poor Performance Q : I continue to confront the employees of our managing agents with evidence of their poor performance. The root of the problem is their total reliance on sub-contractors to deliver services without supervision or follow up resulting in irregular basic services and poor standards. Following a recent visit to their head office I have finally been able to get a list of leaseholders who pay service charges and a copy of the management agreement between the two companies. There is a problem with the management agreement. They admit that they were given the job some 10 years ago and cannot locate any signed documentation. They have provided me with the standard ARMA management contract that can be downloaded online, with the names of the parties inserted but no signatures. There seems to be no schedule of property services to be provided beyond admin functions. As there appears to be no agreement in place does this mean this company has no legal basis to charge leaseholders anything and that leaseholders now are entitled to either start from the beginning to set and enforce standards or even appoint another agent? FPRA Committee Member Mary-Anne Bowring replies: There may be a contract by performance, their fee could be construed to be agreed in the initial budget, but this begs the question how or on what basis it has been reviewed since. It depends on your legal structure as written into the lease what you can do next. It appears that you have a management company, perhaps you could become the directors and appoint your own choice of managing agent. Or, you should write to the freeholder with evidence asking them to appoint your nominated agent [Submitted June 2019]

Question 1

Poor Performance

Accepted Answer

Poor Performance Q: I continue to confront the employees of our managing agents with evidence of their poor performance. The root of the problem is their total reliance on sub-contractors to deliver services without supervision or follow up resulting in irregular basic services and poor standards. Following a recent visit to their head office I have finally been able to get a list of leaseholders who pay service charges and a copy of the management agreement between the two companies. There is a problem with the management agreement. They admit that they were given the job some 10 years ago and cannot locate any signed documentation. They have provided me with the standard ARMA management contract that can be downloaded online, with the names of the parties inserted but no signatures. There seems to be no schedule of property services to be provided beyond admin functions. As there appears to be no agreement in place does this mean this company has no legal basis to charge leaseholders anything and that leaseholders now are entitled to either start from the beginning to set and enforce standards or even appoint another agent? FPRA Committee Member Mary-Anne Bowring replies: There may be a contract by performance, their fee could be construed to be agreed in the initial budget, but this begs the question how or on what basis it has been reviewed since. It depends on your legal structure as written into the lease what you can do next. It appears that you have a management company, perhaps you could become the directors and appoint your own choice of managing agent. Or, you should write to the freeholder with evidence asking them to appoint your nominated agent [Submitted June 2019]

Question 2

Poor Performance

Accepted Answer

Poor Performance Q: I continue to confront the employees of our managing agents with evidence of their poor performance. The root of the problem is their total reliance on sub-contractors to deliver services without supervision or follow up resulting in irregular basic services and poor standards. Following a recent visit to their head office I have finally been able to get a list of leaseholders who pay service charges and a copy of the management agreement between the two companies. There is a problem with the management agreement. They admit that they were given the job some 10 years ago and cannot locate any signed documentation. They have provided me with the standard ARMA management contract that can be downloaded online, with the names of the parties inserted but no signatures. There seems to be no schedule of property services to be provided beyond admin functions. As there appears to be no agreement in place does this mean this company has no legal basis to charge leaseholders anything and that leaseholders now are entitled to either start from the beginning to set and enforce standards or even appoint another agent? FPRA Committee Member Mary-Anne Bowring replies: There may be a contract by performance, their fee could be construed to be agreed in the initial budget, but this begs the question how or on what basis it has been reviewed since. It depends on your legal structure as written into the lease what you can do next. It appears that you have a management company, perhaps you could become the directors and appoint your own choice of managing agent. Or, you should write to the freeholder with evidence asking them to appoint your nominated agent [Submitted June 2019]

Poor Performance

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