An RMC Board should builds on the range of skills, personalities and backgrounds each Director brings and together formulate a long term holistic strategy. RMC governance is about scrutiny of everything from the accounts to the Capital Expenditure Plan and everything in between. It works well when there is a Resident Management Company Director to represent each block to be the eyes and ears for housekeeping issues. If a Director has a passion for gardening, then setting up a gardening committee or a budget for seasonal planting oe watering can really enhance the visual impact and foster a sense of place.
Running a Residents Management Company 'RMC' is a partnership between the chosen Managing Agent amd the elected RMC Directors. Client Directors need to rely on the Managing Agent for leadership and insights into a range of fields and in turn the Managing Agent needs to rely on the RMC Directors for decision making.
A Residents Management Company is a not for profit business where good governance, resident engagement and future planning are key
A Residents’ Management Company is a Limited Liability legal entity formed specifically with the primary goal of ensuring the interests of leaseholders of a residential block of flats are managed. Usually an RMC is formed by the housebuilder or developer who may or may not retain a golden share until they have sold all of the homes. Thereafter, the members or shareholders, comprise the flat owners or leaseholders.
At some point, usually after all the leases are sold and roads have been adopted by the Local Authority, the day to day management and maintenance of the block becomes the responsibility of the Resident Management Company. The Management Company Directors role is to set the strategic path for the block or estate. This includes fiduciary responsibilities such as to agree and set the service budget.and plan sufficient reserves for future projects. Good Company gvernance means just like any company ta Residents Management Company has a constitution 'the memorandum and articles of association' which dictate how the company must be run and annually the company accounts and a Confirmation Statement have to be filed at Companies House. In addition, the RMC Directors role is to perform the Management Company obligations set out in the lease as well as a whole variety of statutory requirements including strong reference to fire and health and safety regulations. Usually unless the RMC Directors are property experts the actual day to day.doing is delegated to a Managing Agent. Being a RMC Director is not easy, it means balancing different agendas, weighing up the competing demands for residents hard earned service charge payments and the role is rarely remunerated.
Setting the block or estate stratrgy - a guide for newly elected RMC Directors
As a Director of a newly formed Resident Management Company 'RMC' here are some pointers to help you plan where your Residents Management Company is going:
- check you feel your current service charge levels represent value for money: compare with similar blocks in your area
- review the fire and health and safety issues to check actions have been closed out
- assess projects or works that will add value to your development
- look for small maintenance jobs and improvements that will show residents you care and make them feel bappier to pay their service charges
- improve resident communication with a quarterly Management Company Board update
- foster a sense of community app
As well sas off loading the day to day minutia often thr challenges that block or estate management may bring can exceed the in-house expertise amongst the appointed directors. This is when thr joined up expertise of a multi-disciplinary Managing Agent really makes a difference. Team Ringley are on hand for signposting on a range of surveying, engineering and legal issues and for paid advice to take the load off busy inpaid volunteer RMC Directors.
A strong Resident Management Company Board makes a real difference
Key services a professional Managing Agent can provide to an RMC:
More often than not although newly appointed (or even existing Directors) join the RMC because they have a strong vested interest and care passionately about the current and future running of their most valued asset. The RMC Directors are the Client and the Managing Agents role is to give them the guidance, advice and expertise they need for the long term planning and management of their building or estate.
Frequently asked questions
What is a residential management company?
A resident management company (RMC) is a company that manages the day-to-day running of a residential building or estate. RMCs can be set up by the residents themselves, or they can be appointed by the landlord.
The main purpose of an RMC is to make sure the property is well maintained and runs smoothly. RMCs are responsible for coordinating repairs and maintenance, collecting rent, enforcing leases, and preparing financial reports.
RMCs can be either private companies or non-profit organisations. They are typically run by a board of directors made up of residents of the property.
If you're thinking of setting up an RMC or appointing one to manage your property, we can help. Contact us today and we'll walk you through the process. We'll make sure everything is taken care of so you can focus on other things.
What does a residential management company do?
A residential management company is responsible for managing the day-to-day running of a residential property. This includes but is not limited to, coordinating repairs and maintenance, collecting rent, enforcing leases, and preparing financial reports.
Why use a residential management company?There are many reasons why you might choose to use a residential management company. Some common reasons include:
- You own multiple properties and can't manage them all yourself.
- You live far away from your rental property and can't be there to handle everything in person.
- You want to free up your time so you can focus on other things.
- You don't feel comfortable managing your own property.
What to look for in a residential management company?When you're looking for a residential management company, there are a few things you should keep in mind. Make sure to look for a company that:
- Has experience managing the type of property you own.
- Is licensed and insured.
- Offers services that fit your needs and budget.
- Has a good reputation.
How do I appoint a residential management company?If you've decided to use a residential management company, there are a few things you need to do to appoint one. First, you'll need to write a contract that outlines the services the company will provide and the terms of the agreement. Once the contract is signed, the company will be responsible for managing your property according to the terms of the agreement.
What are the benefits of using a Residents management company?There are many benefits of using an RMC to manage your property. Some of the most common benefits include:
- improved communication between residents and the landlord;
- more involvement from residents in the running of the property;
- better maintenance and repair coordination;
- increased efficiency and accountability;
- better financial reporting.
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