The (large, Victorian) house next to me was renovated and the seven flats sold. We know the couple that own the flat that semi-abuts our house quite well. There was originally a management company appointed by someone (the company that bought the freehold I think) and the leaseholders were not happy with the work or the costs and they took over management, which took some time & effort.
When my neighbour told me they were doing this, he said that once they had control they would draw up a set of 'rules' and get a firm to administer them. There were two main reasons for this.
- To make sure that everything was done by appropriate people & with insurance cover, as @JobAndKnock says.
- To avoid any leaseholders subsequently arguing that work did not need to be done, could be done cheaper (maybe by them), refusing to pay their share, etc.
If the appointed firm did not do a good job, then the leaseholders could get a new firm to take over.
Discussing some work they are having done a few months back I asked how the system was working. I was told that one of the flats had been sold and the new leaseholder was initially talking as if every decision was up for discussion but when it was made clear there was a fixed [1] set of rules they just accepted the situation. Also, one leaseholder had lost their job and wanted to withhold their maintenance payment, and it is the management firm that has to chase them. Avoiding any awkwardness / unpleasantness in the house.
1. Of course the rules could be changed by the leaseholders (unanimous or majority, I don't know), but as a collective decision not at one party's whim.
When my neighbour told me they were doing this, he said that once they had control they would draw up a set of 'rules' and get a firm to administer them. There were two main reasons for this.
- To make sure that everything was done by appropriate people & with insurance cover, as @JobAndKnock says.
- To avoid any leaseholders subsequently arguing that work did not need to be done, could be done cheaper (maybe by them), refusing to pay their share, etc.
If the appointed firm did not do a good job, then the leaseholders could get a new firm to take over.
Discussing some work they are having done a few months back I asked how the system was working. I was told that one of the flats had been sold and the new leaseholder was initially talking as if every decision was up for discussion but when it was made clear there was a fixed [1] set of rules they just accepted the situation. Also, one leaseholder had lost their job and wanted to withhold their maintenance payment, and it is the management firm that has to chase them. Avoiding any awkwardness / unpleasantness in the house.
1. Of course the rules could be changed by the leaseholders (unanimous or majority, I don't know), but as a collective decision not at one party's whim.
