What is a Residents Management Company (RMC)?
A Residents Management Company (RMC) is a legal entity formed by property owners within a housing development.
Its primary purpose is to take on the responsibility of managing the communal areas and overseeing the running of the development.
In most cases, all property owners within the development are members of the RMC and hold equal shares.
Directors, often property owners themselves, are appointed to represent the RMC and make key decisions related to the management of the property, block or development.
What is a Managing Agent?
A managing agent is a professional company appointed by the Residents Management Company (RMC) to handle the day-to-day management of the property and its services and to give sound advice to the Directors of the Residents Management Company.
In the context of property management, BNS is a Managing Agent.
The managing agent acts as a liaison between the owners and the RMC, ensuring that the property is run efficiently and in compliance with relevant regulations and legal requirements.
What is the Role of the Residents Management Company?
The Residents Management Company plays a crucial role in decision-making and oversight.
Directors appointed by the RMC are responsible for making key decisions regarding the management of the development.
This includes appointing a managing agent, agreeing on the annual service charge, approving larger expenditures, and ensuring that the communal areas are well maintained.
The RMC provides property owners with a sense of control and security over the management of their development.
What is the Role of the Managing Agent?
The Managing Agent, such as BNS, is appointed by the RMC to carry out the day-to-day management tasks outlined in the lease agreements and in accordance with statutory requirements and to give industry leading advice on all management matters to the Directors of the RMC.
The managing agent collects service charges from property owners, manages finances, ensures lease compliance, and takes care of various operational aspects including maintenance of the internal and external communal areas.
This role demands a broad set of skills, including knowledge of landlord and tenant law, building construction, health and safety regulations, and accounting.
What Are the Benefits of Instructing a Managing Agent?
Engaging a professional managing agent offers several benefits to the Residents Management Company and property owners.
The managing agent brings expertise in various fields, including financial management, leaseholder relationships, lease compliance, risk management, fire and health and safety compliance, repairs and maintenance, and support for the RMC.
By outsourcing these responsibilities to a managing agent, property owners can ensure that their development is efficiently managed while complying with legal requirements.
While the Residents Management Company holds decision-making authority and ownership among property owners, the Managing Agent, represented by companies like BNS, plays a vital role in executing day-to-day management tasks and providing the necessary expertise to ensure the smooth operation of the development.
If you would like to find out more about how BNS can ensure efficient and compliant management of your development, get in touch today.