5 Key Benefits of a Property Management Company

Trying to decide if a property management company is right for you?

A property management company may be the ideal solution if the leaseholders share a building that has been separated into individually owned and occupied units. It is also appropriate where the leaseholders or freeholders of units within a development share common amenities such as private roads, pumping stations or grounds ("the facilities").

As we will soon be launching our comprehensive electronic company incorporation for property management companies, we are taking a look at the benefits of a well-run property management company with onsite directors:

  • Tenants have someone to speak to right away in the event any out of the ordinary issue arises.
  • The tenants as a whole have more control over maintenance of the shared areas, facilities and level of service charges.
  • Issues with any “problem” tenants can be dealt with more quickly and efficiently with a property management company in place.
  • Lower tenant turnover. Having the organisation and structure that a property management company offers helps things run more smoothly and can lead to decreased tenant turnovers.
  • Less stress. As the members of a property management company pay into a general fund of sorts, any major repairs or issues needing attention in common areas are no longer the responsibility of a sole individual.

Additional tips to know:

  • At least two directors required for a UK property management company so that control does not rest with one individual.
  • Failure to file accounts and annual returns at Companies House on time may ultimately lead to the company being struck off.
  • If the company is struck off whilst it owns the freehold, the freehold will pass to the Crown as bona vacantia and the tenants may be left unable to sell their units.

If you would like further information on UK property management companies or our electronic company formation services for other specialist companies, please get in touch.

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