The Right to Manage (RTM) is a relatively new concept in real estate in the UK. The RTM gives leaseholders the right to take over the management of their building without having to prove any fault with the current manager. This process is governed by the Commonhold and Leasehold Reform Act 2002, which outlines the procedures that must be followed in order to gain the right to manage.
There are several pros and cons to having the right to manage your own property, which we will explore in this article.
Pros:
1. Greater control
The main advantage of having the right to manage your property is that you have greater control over the management of your building. The main advantage of having the right to manage your property is that you have greater control over the management of your building. Currently, the management of a building is usually the responsibility of a professional managing agent or the landlord, who may not have the same level of interest in the property as the leaseholders. This can result in decisions being made that do not entirely reflect the best interests of the leaseholders.
With the right to manage, leaseholders have the opportunity to take control of the management of their building. They can choose the managing agent, who they feel best meets the needs of the building rather than the landlord’s. Leaseholders can also make their own decisions about what work needs to be done and when. Bhurban Cottages Property management can take a proactive approach instead of a reactive one, resulting in better maintenance of the building.
In addition, with the right to manage, the leaseholders can decide on the cost of repairs and services. Previously, these costs were decided by the landlord, and there may have been instances of the leaseholder feeling frustrated at excessive service charge bills without knowing what the service charges actually funded.
Taking control of the building can also allow leaseholders to choose the frequency of cleaning of communal areas, landscaping, painting, and maintenance services. This enables the leaseholders to take control of the building management that has a direct impact on their daily lives.
2. Reduced costs
By managing the property yourself, you can reduce costs associated with the management of your building. If you employ a managing agent, you will have to pay their fees, which can be significant. Taking over the management of the building can reduce these costs and potentially save money that can be reinveste in the property or used to reduce service charges for leaseholders.
Reduced costs can also come from greater control over the maintenance and repair of the building. With a managing agent, repair and maintenance costs might be inflated, meaning that leaseholders are paying more than they should be. By taking over the management of the building, leaseholders can choose the companies they contract for repairs and maintenance, ensuring that they get the best value for money.
Furthermore, leaseholders can identify areas where they can cut down on costs, such as reducing energy consumption or opting for eco-friendly services. These cost-saving measures can help improve the sustainability of the building while reducing the financial burden on the leaseholders.
Overall, reduced costs are a significant advantage of having the right to manage and can make a significant difference to the financial burden on leaseholders.
3. Tailored service
Taking over the management of the building provides leaseholders with an opportunity to tailor the services provided to meet their specific needs. Managing agents often provide a one-size-fits-all approach to building management, which might not be suitable for all leaseholders.
By taking over the management of the building, leaseholders can customize the services provided to ensure that they meet their specific needs. For instance, if tenants in the building have a common interest in cycling, they might decide to install bike storage spaces or create a bike-sharing scheme, which the managing agent may not have previously considered.
This tailored service can also help improve the quality of life for tenants in the building. Leaseholders can work together to improve the amenities and facilities provided, ensuring that they meet the needs of everyone.
Finally, having a tailored service can also help increase tenant retention rates. If tenants feel that their specific needs are being catere to, they are more likely to stay in the building. This can help reduce vacancy rates and improve the overall financial stability of the building.
In summary, having the right to manage provides an opportunity to tailor the services provided to meet the specific needs of leaseholders, which can improve their quality of life and increase tenant retention rates.
4. Greater transparency
By taking over the management of your property, you can ensure that there is greater transparency in the management of the building. You can ensure that all costs are visible and reasonable, and that there is clarity around decision-making. This transparency can give peace of mind to leaseholders and help to build trust between leaseholders and the management of the property.
Cons:
1. Time consuming
Taking over the management of your property can be time-consuming. It requires a significant amount of organisation, planning and execution. This means that it may not be a viable option for all leaseholders, particularly those who have busy schedules or a lack of expertise in property management.
2. Legal requirements
The process of gaining the right to manage your property is govern by legal requirements, that must be follow to the letter. Failure to do so can lead to delays and even the termination of the right to manage. Therefore, those who are not familiar with the legal requirements may find the process challenging.
3. Hidden costs
Whilst there may be savings in the management of the property Fully Furnished Villas in Murree, leaseholders must also be aware that there may be hidden costs involved in taking over the management of their building. These can include legal fees, professional fees, and the time involved in taking over the management of the property.
4. Responsibility
Whilst having greater control over your building can be an advantage, it also comes with greater responsibility. You will be responsible for the maintenance of the building, ensuring that the property is compliant with all legal requirements, and for the safety of all those who live in the building. This responsibility can be daunting for those who are not familiar with property management.
In summary, there are pros and cons to having the right to manage your real estate. It can provide greater control, reduce costs, tailor the service to your specific needs and bring greater transparency to the management of the building. However, it can also be time-consuming, come with legal requirements, involve hidden costs and requires greater responsibility. Whether or not to take over the management of your building is a personal choice and leaseholders should carefully consider the advantages and disadvantages before proceeding.