Switching Managing Agent

A Guide for RTM Directors and Resident Management Companies

Changing managing agent can feel like a significant decision for directors of Right to Manage (RTM) companies or resident management companies. However, where communication has broken down, service levels have declined, or transparency is lacking, appointing a new managing agent can significantly improve how a building is run.

With proper planning and a structured transition process, switching managing agent can be straightforward, well organised, and low risk.

When Should You Consider Changing Managing Agent?

Buildings typically consider appointing a new managing agent when one or more of the following issues arise:

• Slow or inconsistent communication
• Lack of transparency around service charge spending
• Maintenance issues taking too long to resolve
• Poor contractor oversight or declining quality of work
• Difficulty obtaining clear financial reporting
• Compliance or building safety concerns not being addressed
• High management fees without corresponding service quality

If these issues persist despite attempts to resolve them, directors may conclude that appointing a new managing agent is in the best interests of the building.

The Role of the Directors

For RTM and resident management companies, the directors are responsible for appointing the managing agent.

The managing agent operates under the instruction of the directors and is responsible for the day-to-day operational management of the building.

Directors should ensure that any decision to change managing agent is taken collectively and properly documented through board meetings or written resolutions.

Steps to Changing Managing Agent

Review the Current Management Agreement

Directors should first review the existing management agreement to understand:

• the notice period required to terminate the contract
• any termination conditions
• the services currently being provided

Most management agreements require between one and three months’ notice.

Obtain Proposals from Alternative Managing Agents

Directors may wish to obtain proposals from one or more managing agents to compare:

• management fees
• services included
• experience with similar buildings
• approach to communication and reporting

This allows the building to appoint a managing agent that best aligns with its needs.

Appoint the New Managing Agent

Once directors have selected a new agent, the company should formally approve the appointment and agree the management contract.

The start date will usually coincide with the expiry of the outgoing agent’s notice period.

Serve Notice on the Existing Managing Agent

The current agent should be given written notice in accordance with the management agreement.

In most cases, the outgoing agent is required to cooperate in transferring information and records relating to the building.

Transition and Handover

The new managing agent will normally coordinate the handover process, including obtaining:

• financial records and service charge accounts
• contractor agreements and service arrangements
• compliance documentation and safety records
• building operational information

This ensures the new agent can begin managing the building effectively from the start date.

What Happens to Service Charge Funds?

Service charge funds belong to the building, not the managing agent.

At handover, these funds are normally transferred to the new managing agent’s client money account, together with a reconciliation of the account balance.

Will Residents Be Affected?

In most cases, residents experience minimal disruption when a building changes managing agent.

The new agent will usually notify residents of the change and provide updated contact details, reporting procedures, and information about how to report maintenance issues.

How Long Does the Process Take?

The timeline for changing managing agent typically depends on the notice period in the existing management agreement.

In most cases the process takes between one and three months from the decision to appoint a new agent to the start of the new management arrangement.

Managing the Transition

A well-organised transition is important to ensure continuity of services such as maintenance, insurance, compliance monitoring, and financial management.

An experienced managing agent will normally coordinate the mobilisation process and ensure that key information and records are transferred properly.

How MY Facilities Management Supports the Transition

At MY Facilities Management we understand that changing managing agent can feel complex for directors.

Our role is to manage the transition in a structured and organised way, ensuring the handover of records, finances, and operational information is handled professionally.

Our mobilisation process includes:

• structured documentation requests
• coordination with the outgoing managing agent
• setup of service charge client accounts
• review of contractor arrangements
• resident communication
• initial building inspection and compliance review

Our aim is to ensure the building transitions smoothly and begins its new management period with clear organisation and oversight.

Considering a Change?

If your building is considering appointing a new managing agent, we would be happy to provide an informal discussion or proposal to help directors understand the options available.