Resident Management Company
The owners of individual flats in a block, typically come from all walks of life, they may have nothing in common apart from the fact they live in the same building, which either purpose built or converted contains a number of self contained dwelling units..
However, one thing they will have in common is that they each share a common interest in the upkeep of the structure of the building and it’s environs. Each individual unit owner, relies on the other owners, to help maintain the building in a fitting condition, also to act in an appropriate manner which will help maintain or improve the building value and the general living conditions at the property. Flat owners need to act in a considerate manner, sympathetic to the other owners living in the block to ensure that everything runs smoothly. Prospective flat purchasers can usually tell (and be put off) by badly run blocks, the signs of general lack of care or maintenance are easy to spot.
Without some kind of management structure, or a means of communication between the individual flat owners, it soon becomes apparent that blocks of flats can be difficult to control and maintain. Rather than decisions being made, they are put off or overlooked altogether, sometimes having fairly serious consequences. Owners of freehold buildings, such as individual houses, do not usually do not have to deal with the same issues as flat owners as as they are free to make all decisions relating to the property without referral to any third parties. Issues such as maintenance and repair and improvements are usually based solely on the owners own wishes. However, flat owners are presented with more complex issues as they have to make decisions collectively and the decision process can take a lot longer. Among the things that need to be decided and discussed are matters pertaining to the upkeep of the building,including: general maintenance, painting and decorating, gardening and removal of rubbish & waste. Insurance of the building is a major consideration and there is much confusion on this subject especially relating to the insurance of common parts of the building. Service charges are another issue along with ground rents, in fact it is these three items that prove to be the most contentious amongst leaseholders often leading to the seeking of enfranchisement.
The general rule, is that the higher the number of individual flats in a block, the more complex, lengthy and often problematical, the decision process becomes. Typically, with a converted property, that may be divided into say two or three flats, the owners usually know each other and decisions can often be made quickly without too many problems. However, in larger blocks, the owners tend not to have so much interaction with other owners, remaining more anonymous and often act more on an individual basis. In these larger blocks, a strong structure needs to be set up to regulate the affairs of the building. Often these large blocks do not lend them selves well to enfranchisement because of their sheer size and the amounts of money involved. Also, managing a substantial block of flats is a full time job, and will mainly be beyond the scope of the residents, a full time manager is required to deal with all the individual flat owners and building affairs.
One common factor in all situations though is the need for some kind of management and the establishment of block rules and regulations, with everyone understanding the rules and what is required of them. Blocks with clear well defined rules and regulations tend to run better and this in itself should help to contribute to the saleability of the flats.
To obtain an insurance quote for your Block of Flats call Assetsure