The RICS, Service Charge residential management code, 3rd edition has now been released and approved by the secretary of state. It became effective from 1st June 2016.
The code deals with matters such as
- Ethics
- Appointment of a managing agent
- Conduct of a managing agent
- Complaints and disputes
- Accounting for client money
- Service charges and ground rents
- Health and safety management
- Repairs and other services
- Contractors and suppliers
- Insurance
- Provision of information
- Tenants associations
- Right to manage
It is a useful document for practitioners but also for landlords and tenants to refer to best practice guidelines. As a member of the RICS, our firm, Michael Parkes Surveyors Ltd is bound by rules of the RICS and codes such as this are prepared to promote desirable practices in respect of management of residential leasehold property. Successful management can be obtained through mutual understanding of the procedures necessary for effective management.
A managing agent should be compliant, transparent and provide value for money with regards to the services provided at the leasehold premises, whilst working within the structure of the particular lease. The following should be considered when taking management decisions
- Statutory requirements
- Terms of the lease or tenancy agreement
- Cost effectiveness
- Transparency
- Efficiency
- Reasonableness
- Quality of service
Compliance with this code is not mandatory but a managing agent should be able to give justification if departing from the recommended best practice.
