Why would I want to take on the right to manage?
You may want to take on the right to manage if you believe that your landlord or the management company currently in charge of your building, is not doing a good or efficient job of the upkeep of your building. You may also feel that you are overpaying on maintenance charges. Not only this, but in order to increase the value on your flat, your building may need development, which is something that your landlord or his/her management company is not offering you.
The right to manage is not something that you can take on single handed. It involves the support of at least 50% qualifying tenants in your building. Therefore it will not just be you who is taking on the right to manage; instead you and your fellow tenants will create a right to manage company. This company will then look after the building and its upkeep.
Are there any disadvantages to exercising my right to manage?
There are some disadvantages to setting up a UK Right To Manage Company including :
At least one tenant must act as a director to the company, which incurs addition liabilities such as being responsible to the members of the company.
Budgets and cash flow must be monitored and when tenants do not pay up, it is not the landlord’s responsibility to collect payment, it is the company’s.
It may be difficult to please all tenants. Some may be for development and some may be against, this can inadvertently create conflict and blame may be laid at the director’s door.
Not every tenant will join as a member of the right to manage company, yet those who do not join will still benefit from the fruits of your labour.
The present landlord is entitled to join the company as a member and may therefore be entitled to vote on what action is taken (depending on the set up of the company).
For specialist Right To Manage Guidance, talk to our Right To Manage Solicitors first
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