5 traps to avoid for Right to Manage companies
There are plenty of advantages to managing your own block of flats. Right to manage gives you more control over decisions for your block, reduced costs and improved service. However, self-management can tricky to get your head around. Block of flats insurance company, Flats Direct, lists some of the issues to avoid so self-management works for you.
Getting the wrong insurance
Getting the wrong type of insurance will cost you in the long term. As an RTM company, it is essential to have comprehensive Directors and Officers insurance. Take time to work with your insurance company to ensure your policy covers all aspects of your block management, including any complexities or potential complications.
Don’t Ignore the lease
As a responsible right to manage company, you must have a thorough knowledge and understanding of your lease and your obligations. If you don’t meet the requirements of your lease, you may experience leaseholder disputes and interruptions to your cash flow.
Spending money in the wrong areas
It’s easy to get carried away when finances are under your control. But as a right to manage company, remember to consult your lease before investing in any new projects. Installing any ‘unauthorised extras’ can lead to severe financial and legal issues in future.
The landlord and tenant have set rules about demanding services charges. Be sure to revise which prescribed documents are needed and the correct format to present them in. Otherwise, you may not able to recover unpaid demands.
Keep tender contacts up to date
Failing to re-tender contracts, such as gardening, cleaning and maintenance, can lead to leaseholder challenges. By ensuring your tender contracts are renewed in time, you assure your fellow leaseholders that you are managing the block in an honest and responsible way.
Interesting in becoming a right to manage company and want to know more? Contact block of flats insurance specialists, Flats Direct now on 0800 7316242 or 01202 862660 or receive a free block of flats insurance online quote by completing the form.