Checklist: Choosing a managing agent

Management companies should always keep costs under review. Where appropriate, they should require managing agents to submit competitive tenders or provide competing quotations.

The following are some pointers to consider when choosing a managing agent or other service provider.

Know what your budget is – but you don’t need to disclose what you can afford if you are negotiating on price
Be clear and specific about the work you want carried out – ask about the quality and frequency of service
Shop around for detailed quotes – remember, the cheapest quote may not provide the best quality work
Ask if the fees are inclusive or exclusive of VAT
Look for references from other management companies
Check if the agent is registered with the Companies Registration Office
Ask what qualifications and experience the agent has to undertake the work required
Ensure that the agent has appropriate insurance, particularly professional indemnity insurance

Questions to ask prospective managing agents

Please provide all relevant company details, including the names and qualifications of all directors and a list of proprietors if not a quoted company.
Will your fees carry VAT?
How close are your offices to our property?
How many years have you been in the property management business?
How many staff in your company are involved with management?
How many blocks do you manage, and how many units in them?
Please supply three references for blocks you manage. Ideally these should be similar to our own property and in our area.
Please supply name and telephone number of chairman/secretary of the managing companies in those blocks.
What is your fee structure?
How can you convince us that you can offer a quality service at a fair cost?
How comprehensive a panel of contractors do you have?
Do you charge a fee for contractor selection and/or a percentage of their charges for:
- Contractors chosen by you?
- Contractors chosen by us?
What selection criteria do you use for contractors on your panels?
How often does a representative from your company visit blocks you manage and check on how your contractors fulfil their obligations?
What IT facilities do you have and what information can you record and keep updated? Are you registered under the Data Protection Act?
Where and how do you keep service charge monies, and how are they administered and who receives any interest?
Can you supply an example of the format of financial information you will use for our block?
How do you deal with unpaid service charges - what procedures are in place to deal with non-paying lessees?
How do you deal with lessees in breach of their leases?
How do you deal with complaints?
Do you offer an out-of-office-hours service for emergencies? If so, please provide details.
What length of notice period do you require?
List any professional or trade bodies to which your firm belongs.
Provide full details of your professional indemnity insurance.
Provide proof of your financial probity.
Provide a copy of any standard contract you use.