How to Change Your Managing Agent

The answer depends on the ownership and management structure of your block. Most residential blocks of flats operate under a tri-party lease arrangement involving a freeholder, a management company (usually an RMC or RTM company), and the individual leaseholders.

If your block has a Resident Management Company (RMC) or a Right to Manage (RTM) company, the directors of that company typically have the authority to appoint and remove the managing agent. This means the board can vote to terminate the existing management agreement and appoint a replacement, subject to the terms of the contract (usually a notice period of one to three months).

If your block does not have an RMC and the managing agent was appointed directly by the freeholder, the situation is different. In this case, leaseholders may need to exercise their Right to Manage under the Commonhold and Leasehold Reform Act 2002 to take control of the appointment process.

There is no single reason that justifies a change. More commonly, it is a pattern of issues that builds over time. The following are among the most frequently cited reasons blocks decide to switch managing agents.

Poor Communication

Calls and emails go unanswered. Directors struggle to get updates on maintenance requests. Residents feel ignored. Communication is consistently the number one complaint in block management, and it is often a symptom of deeper operational problems within the managing agent's business.

High Staff Turnover

Research consistently shows that the primary reason property managers resign is unsustainable workloads. When your property manager leaves and is replaced by someone unfamiliar with your building, the cycle of re-explaining your block's history, contracts, and ongoing issues begins again. If this has happened more than once, the problem is systemic.

Rising Costs Without Improvement

Service charges should reflect the actual cost of maintaining your building. If charges are increasing year on year but the standard of service remains unchanged or declines, directors have a duty to investigate whether the block is receiving value for money.

Compliance Gaps

Fire risk assessments overdue. Legionella testing not completed. Asbestos registers missing. Health and safety compliance is a legal obligation, and directors of RMCs carry personal liability. A managing agent that fails to stay on top of compliance requirements puts your building and your board at risk.

Lack of Financial Transparency

If your directors cannot obtain clear, detailed financial reports showing how service charge funds have been spent, that is a serious concern. Leaseholders have a statutory right to inspect accounts, and your managing agent should provide comprehensive reporting as a matter of course, not only when requested.

Choosing the right replacement is as important as making the decision to switch. Not all managing agents operate in the same way, and the differences in service quality can be significant.

When evaluating potential agents, consider the following.

Check Accreditations

Look for membership of recognised industry bodies such as The Property Ombudsman, The Property Institute (TPI), or RICS (Royal Institution of Chartered Surveyors). These memberships indicate that the agent operates under a code of practice and is subject to independent oversight.

Ask About Portfolio Sizes

Find out how many buildings each property manager handles. An agent whose managers are responsible for 30 or more blocks will inevitably provide a different level of service from one where managers handle significantly fewer. The person assigned to your block matters more than the company name on the letterhead.

Meet the Actual Manager

Before signing any agreement, insist on meeting the individual who will manage your block day to day. Ask about their experience, their approach to communication, and how they handle emergencies. If the agent cannot tell you who will manage your building before you sign, that should raise questions.

Understand the Fee Structure

Management fees vary and may be structured as a fixed annual fee per unit, a percentage of the service charge budget, or a combination. Ensure you understand exactly what is included in the fee and what will be charged as an additional extra. Transparent pricing from the outset avoids disputes later.

Request References

Ask to speak with directors of other blocks the agent manages, ideally buildings of a similar size and type to yours. A reputable agent will have no difficulty providing references.

Once the decision has been made, the practical process of changing managing agents follows a well-established sequence. Below is what to expect at each stage.