Understanding Property Management

What is property management?

A property management company, such as Sage, is responsible for managing a property development on behalf of its owner / landlord as well as providing services to occupants. Often known as a ‘managing agent’, responsibilities under its remit could include collecting monies from tenants, monitoring health and safety, arranging maintenance works and exercising budget control.

What is the difference between an owners’ management company (OMC) and a managing agent?

It’s easy to confuse the two as they are so similarly named, but actually an owners’ management company (OMC) and a managing agent have very different roles.

An OMC is made up of apartment owners who automatically become members of the OMC when they purchase their apartments. The OMC jointly owns the common areas and is responsible for the operation of these areas. Typically, an OMC contracts our all or some of its responsibilities and this is where the managing agent, such as Sage Property Management, comes in to take on the day to day running of the building and ensure legal obligations are met.

What is the managing agent’s role?

Managing agents, such as Sage Property Management, are employed by the building / development’s owner to undertake the day-to-day running of a development. Part of the managing agent’s role is to ensure that clients are getting the best value for money from service providers and contractors. The agent should constantly strive to improve the condition, appearance and financial position of the property.

Should we have a contract with our managing agent?

It is now mandatory under the Property Services Regulatory Authority that all agents must now be licensed. On entering a contract with a licensed agent, the OMC must now sign a Property Services Agreement. The purpose of which is to provide comfort for both parties.

What are service charges?

Service charges are the annual fees that property owners pay for services provided by their housing or apartment development’s management company. These charges are for the upkeep of common areas, including repairs and running costs, and other items like cleaning, electricity, lifts, insurance and refuse collection.

How long is the service charge payable for?

As long as you own the property, you pay an annual service charge. Once the property is sold, the new owner is responsible for the payment of the service charge.

Will the service charge fee be the same amount every year?

Not necessarily, it will depend on how much work needs to be carried out and the budget

agreed by members at the AGM.

Are we receiving a good level of service?

Below is a guideline of what you should expect from a good managing agent, as a minimum:

• The agent should always act in the best interests of the property owners
• The agent should demonstrate consistent and committed service
• The agent should show total financial transparency and always have expenditure approved
• The agent should work with qualified and insured independent contractors
• The agent should have no conflicts of interest with service contracts
• The agent should hold professional indemnity insurance
• The agent should carry out regular site inspections.

Can we change managing agents?

Yes, if you are dissatisfied with the level of service or value for money received from your managing agent, you are perfectly within your right to change your managing agent, subject to the conditions of your Property Services 

Why choose Sage Property Management?