WHAT IS A RESIDENT MANAGEMENT COMPANY?
A resident’s management company (RMC) is a non-profit organisation that is designed to protect the interests of leaseholders within a residential premise. A RMC is usually formed by the residents of a multi-occupied building who take ownership over the management and maintenance of their property. Usually, each resident owns one share per flat and essentially becomes a shareholder in the company, and in turn takes on the responsibility under the terms of the lease to manage the building/development.
This ownership is distributed equally and if a resident sells their flat, that share is automatically passed on to the new owners, so only current residents remain in control of their building. Typically, the RMC assumes responsibility for communal areas, such as the grounds, walls, and roofs. In many cases residents will delegate the responsibility for the day-to-day management to a suitably appropriate managing agent.
Guidance for RMCs
WHERE CAN I FIND FURTHER INFORMATION TO BECOME A RMC DIRECTOR?
The Property Institute (TPI) is the leading professional body for residential property management in England, Scotland, and Wales. Formed by the merger of ARMA and IRPM, TPI are committed to raising standards in the sector to make a positive difference for its members, clients, and residents, by way of ensuring homes are managed competently, safely and ethically. TPI’s self-service library offers considerable guidance and training courses.
The Leasehold Advisory Service (LEASE) is an independent body, that provides free advice on residential leasehold and park homes law. They also offer advice on fire safety to leaseholders living in high-rise buildings. Here you can find a wide range of advice on the management of a building. There is also a guide to appointing a managing agent available.
FARADAY AND RMCS WORKING TOGETHER
Faraday provide a professional management service to a client base of mainly RMCs, whereby homeowners are empowered to manage their own buildings. We act as advisors to help them understand the minefield of Landlord and Tenant legislation, along with understanding Company Law, Health and Safety Law, fire safety, asbestos management, to name a few, along with facilitating the terms of the relevant Lease/legal documentation.
CLIENT MONIES SAFELY HANDLED
Faraday operate a seamless client finance and service charge accounting operation. All banking facilities are in line with the RICS code of practice, S42 of Landlord and Tenant Act 1987 and general financial regulation (FCA/Anti Money Laundering).
PERSONAL AND PROFESSIONAL
We offer a personal service that is professional and in-line with the latest regulations and legislative requirements, to ensure compliance. Each development under management has a dedicated property management team, who are client facing and develop strong relationships in each locality.
QUALIFIED EXPERTS
Faraday provide a service that our clients deserve. Our ethical values are fundamentally embodied within the core of our operations, along with transparency and frequent communication at the forefront of our service.