Block Management Case Study
Tudor House is a block of 18 apartments in Walsall city centre. The Leaseholders/owners of each apartment are collectively members of Tudor House (Walsall ) Ltd.
The Directors of Tudor House (Walsall) Ltd approached Inspire Property Management in 2011 following a recommendation as they felt they had been let down by their previous Managing Agents. The Directors had just been made aware that they were being taken to the Leasehold Valuation Tribunal (LVT). The claim amounted to £40,756.44. which would have been payable by the 18 Leaseholders. The LVT case related to unpaid amounts which the Freeholder claimed Tudor House (Walsall) Ltd should have paid via the previous Managing Agents. Tudor House (Walsall) Ltd employed the Managing Agents to take care of all matters relating to the running of the building which included payments to the Freeholder.
When Inspire Property Management took over the running of the building, in addition to the £40,756.44 being claimed at the LVT, there was no funds in the service charge account and the reserve account, plus there were a large amount of arrears. Adding to this, the building was in a very poor state with little or no maintenance being carried out for a number of years with various health and safely risks. Apartments were up for sale with no purchasers interested.
Within weeks of taking on the building, the case was to be heard at the LVT. Inspire prepared the defence for Tudor House (Walsall) Ltd and successfully reduced the claim from £40,756.44 to £17,496.28.
Inspire Property Management worked on reducing the service charge arrears owed by Leaseholders. It became apparent that Leaseholders had stopped paying their service charge to the previous Managing Agents as they felt they did not receive any service from the Managing Agent and no work was being carried out to the building. Additionally, although the Leaseholders had previously paid the amounts requested by the previous Managing Agents their accounts had fallen into arrears and when questioned, the previous Managing Agents had not provided the Leaseholders with any information of how the arrears had accrued. Year on year Leaseholders had received supplementary demands making budgeting difficult. Inspire worked with the Leaseholders to resolve their issues and the arrears were dramatically reduced.
Inspire worked with Directors to produce a realistic budget. All contracts were reviewed and planned maintenance was implemented.
Over the past two years the building has been turned around from having no money and no maintenance to a building where arrears are minimal, funds are available in the service charge account to carry out planned and responsive maintenance and the reserve account is building. Additionally, all health and safety works have been carried out, the building has been partly decorated and apartments are selling again.
Private Landlord Case Study
Inspire Property Management was approached by a Landlord for advise regarding his property portfolio. He was having difficulties with his letting agent who had not passed the rental income on to him for a number of months.
Inspire advised the Landlord of his rights and assisted him to approach the agent with a view of resolving the issues. It became apparent that the letting agent had suffered from poor health over the previous few months and that he was relying on his staff to run the office in his absence. Additionally there had been a number of staff changes and service had “slipped”.
The Landlord felt it necessary to change letting agents and moved his portfolio to Inspire.
On taking on a new client, Inspire carry out a full audit to ensure the clients are fully protected and amongst others issues the following was discovered: –
- Some properties had not been gas safety checked for a number of years. One property had a gas leak.
- The electrics had not been checked and a number of faults were indentified.
- The tenants deposits had not been protected with one of the approved schemes
All of the above left the client exposed to potential claims and even imprisonment.