Residents Management Company
Block property management requires meticulous planning and a lot of work. Even small issues can affect building compliance and compromise the health and safety of residents, which highlights the importance of RMCs.
A Residents Management Company (RMC) is a conglomerate of leaseholders of an apartment complex responsible for managing a block of flats. RMCs work with professionals such as managing agents, accountants, legal advisors, surveyors, contractors, and on-site staff to manage responsibilities including service charge collection, property inspection, and upkeep and repair.
What is a Residents Management Company?
A Residents Management Company (RMC) is a non-profit company formed by the leaseholders and freeholders in an apartment block. The people involved in this limited liability company are responsible for managing an apartment complex's common areas and making sure building codes are followed.
Setting up a Resident Management Company usually occurs as part of the lease agreement. The flat owners automatically become members of the RMC, and each year, some of these members are elected as directors.
RMCs often have their work cut out for them, and when someone lacks proper knowledge about the numerous jobs involved in property management, they may choose to outsource the work to a professional agency like Habitare.
Setting up an RMC
A Resident Management Company is established right at the development stage. While the property owner initially holds the majority of shares, once all the units are sold or leased, the flat owners and leaseholders take over as shareholders of the RMC. This transition gives residents control over the management and upkeep of their shared spaces.
Setting up a Residents Management Company results in the formation of a private company limited by guarantee rather than shares. The general structure of an RMC looks like this:
- Members (shareholders) are leaseholders or property owners
- The RMC’s liability is a nominal amount of £1
- Any surplus from the service charges is reinvested into property upkeep rather than being distributed to shareholders
One or more RMC directors are chosen from among the members.
To make a Residents Management Company an official entity, it needs to be registered with Companies House. The steps for registering and setting up a Resident Management Company are:
1
Provide a registered address, which is usually the address of the apartment block
2
Submit documents such as a Memorandum of Association, Article of Association, and form IN01.
3
Pay the required registration fee.
Once your registration is approved, you’ll be handed over the Certificate of Incorporation. If you need advice or support with setting up a Residents Management Company, talk to Habitare.
What Are RMC Director Responsibilities?
Directors of a Residents Management Company have several responsibilities. Some of these include:
Financial Management
Within an RMC, it’s necessary to have a separate bank account which will be used for service charge collection and property-related financial management.
Furthermore, the directors of Resident Management Companies need to prepare and file annual accounts with the Companies House. They also need to collect service charges, prepare a budget for property management, and ensure funds are appropriately allocated. RMC directors are also responsible for insurance issuance and management.
If you need help with your financial management responsibilities, Habitare’s in-house finance team can support you with budgeting, auditing, reserve fund management, and maintaining transparency in record-keeping.
Maintenance and Repair
RMC directors are responsible for regular property maintenance and repair. More specifically, a Residents Management Company is accountable for maintaining the communal areas within a block and the exterior of the building.
Are you struggling with building inspections, upkeep, and repair? Habitare offers preventative maintenance and proactive repair work, helping you maintain the structural integrity and safety of your building, ensuring it remains compliant with building regulations.
Legal Compliance
An RMC director is responsible for filing the Annual Confirmation Statement to Companies House. They also need to maintain records of financial transactions, meeting minutes, and resident or contractor communication.
An RMC director will also work to ensure compliance with property-related legislation, such as the Landlord and Tenant Act 1985 and the Commonhold and Leasehold Reform Act 2002.
Staying updated with changing building regulations and laws can be difficult, but this is where professional assistance can be particularly beneficial. Habitare’s secretarial team is on hand to help you stay compliant with fire safety regulations, The Building Safety Act 2022, and other laws.
Open Communication
RMC directors must conduct regular meetings with shareholders and provide information regarding maintenance, repairs, and service charge collection. They should also promptly respond to any resident queries and feedback.
Habitare can communicate with residents on your behalf, conducting regular meetings, responding to complaints, answering queries, and resolving disputes as necessary.
“Great customer service. Very knowledgeable and a pleasure to deal with, highly recommend.”
Drew Joseph
Professionals That Work With RMCs
A Residents Management Company is assisted by several professionals, such as managing agents, accountants, surveyors and legal advisors.
Benefits of Professional Management with Habitare
If your RMC feels overwhelmed by the property management responsibilities you’ve taken on, and you find yourself struggling to keep up, we strongly recommend working with a professional block management company. Connect with us at Habitare for end-to-end block property management solutions.
We can assist you with the following bespoke services:
REGULAR INSPECTIONS
Our seasoned property agents will conduct regular inspections of your block, offering maintenance and repair solutions as needed. Building and resident safety is our top priority.
Resident Surgeries
On your behalf, we’ll create an open platform where residents can raise concerns and share their feedback and questions. This helps to create a harmonious and cordial living experience.
SECRETARIAL SERVICE
We also help with administrative tasks and record-keeping, so you can stay compliant and smoothly run all operations related to property management.
Contractor Management
We only work with top-rated local contractors, so we can guarantee that all work is completed with professionalism, reliability, and quality.
On-site Staff Management
When applicable, our property managers assist RMC directors with coordination with on-site staff. We’ll provide supervision and support to make sure everything runs smoothly.
Service Charge Collection
For those who need it, we offer transparent service charge collection, management, and disbursal to keep your RMC operating as it should.
Emergency Out-of-Hours
Emergencies can happen at any time, and our team is ready to act fast, no matter the time of the day. With professional help just a call away, you’ll have peace of mind knowing that you’ll be supported in a worst-case scenario.
Exceptional Customer Service
We tailor our services to each of our clients to deliver the right solutions for your needs. With Habitare, RMC directors can disburse their duties efficiently and effectively.
In-House Accounts Team
Our experienced financial team can support you in your financial planning, forecasting, and record-keeping.