5 common misunderstandings about block management

There is a difference between the management company and the managing agent.

A resident management company (RMC) and a managing agent are both entities involved in the management of residential blocks of flats or apartments within a larger building or development. However, they play distinct roles and have different levels of involvement in the management process. Here's a breakdown of the differences between a resident management company and a managing agent:

Resident Management Company (RMC)

1. Ownership and Control: An RMC is typically a company established by the residents or owners of the individual units within a block of flats. Each resident or unit owner is usually a shareholder or member of the RMC, giving them a degree of control and influence over the management decisions.

2. Ownership of Common Areas: The RMC often owns or controls the common areas and shared amenities within the building or development.

3. Responsibilities: The RMC is responsible for managing and overseeing the maintenance, repair, and administration of the common areas and shared facilities. This includes making decisions about budgeting, service charges, and major works.

4. Decision-Making: Major decisions regarding the property, such as appointing managing agents, approving budgets, and setting service charges, are often made collectively by the RMC's shareholders or members.

5. Direct Involvement: Residents who are part of the RMC may have a more direct involvement in the management and decision-making process, which can provide them with a greater sense of control over their living environment.

Managing Agent:

Managing Agent - A managing agent is a professional company or individual hired by the RMC or property owners i.e Freeholder, to manage the day-to-day operations and administration of the residential block or development.

1. Operational Management: Managing agents handle practical tasks such as maintenance, repairs, dealing with contractors, collecting service charges, budgeting, financial reporting, health and safety compliance, and other administrative responsibilities.
2. Expertise: Managing agents bring specialised

knowledge and expertise in property management, legal matters, health and safety regulations, and maintenance practices.

1. Contractual Relationship: The managing agent typically enters into a contract with the RMC or property owners to provide specific services. Their role is to execute the decisions and policies set by the RMC.
2. Limited Decision-Making: While managing agents play a crucial role in the day-to-day management, major decisions related to the property are usually made by the RMC or property owners, with the managing agent providing recommendations and implementing those decisions.

In summary, a resident management company is a collective ownership and decision-making entity comprised of the property owners, while a managing agent is a professional service provider hired to handle the operational and administrative aspects of property management. The two entities often work in collaboration to ensure the effective and efficient management of residential blocks or developments.

In the next post you can read about the second common misunderstanding in block management.

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