Advice Needed on Estate Management Fees for New Build House

[CuriousPebble]

Hello everyone,

I am seeking advice regarding estate management fees for my new build house. Recently, I received a letter from an estate management company requesting these fees. While the amount isn’t substantial, we were aware that these fees would eventually be required, presumably because the estate is now considered “finished.” However, I have several concerns:

1.	I am not familiar with this company and would like to know more about them. Specifically, how often will they be visiting the estate, what services will they be providing, and how can we ensure we’re getting value for our money?

2.	I am unsure how they were appointed as the estate management company for our development. Shouldn’t we have some say in who is appointed to manage the estate and green areas? What steps can we take if we’re not satisfied with their services?

Before reaching out to the company directly, I wanted to check here to find out what I can about estate management fees and companies. How do residents typically interact with these companies, and what influence do we have in their appointment and ongoing performance?

Given these concerns, I want to understand the situation fully before committing to paying fees year after year. I would greatly appreciate any advice or experiences you could share, especially if you have a new build with similar estate management fees.

Thank you in advance for your assistance!

You should have been sent information on what is covered and the estimated cost as part of the conveyancing process.

The company would have been appointed by the Management Company named in the transfer document when you bought. Look for “Management Company” in your transfer to see what they’re allowed to do.

How much influence you have- probably very little. It will depend on how big the development is and whether or not you have a share or membership in the Management Company.

Oh, and you’ve already committed by signing the transfer.

I’m afraid you made the commitment when you bought the house. It isn’t something you now have an option over. And you have no say, if they do not do a decent job as per management company instructions you can complain. But that’s it. You made the commitment and you knew you did,

As previous poster said, look at your legal documents.

If there is a management company stated then control of the management company will probably be with the landlord, the company will have mem & arts which will determine when control passes over to the property owners. Usually upon completion of the last unit.

If you check the company out on companies house you’ll be able to see who the registered directors are.

If there is no management company then the Landlord has all the control at this point.

There are things you can do to take control, forming a recognised residents association or going Right to Manage. Don’t underestimate the amount of work involved in this though.

Before going down any of these formal routes, just reach out to the agents and ask questions. Most agents do a lot more work than the residents realise or appreciate. Most agents would be happy to work with an informal residents association, they know the options available to you and want to keep the business.

They’ll cut any communal grass twice a year at an extortionate cost. In your deeds, you can probably vote to change the company after x years if y% of owners agree. But good luck finding a decent, ethical one.

Given these concerns, I want to understand the situation fully before committing to paying fees year after year

that horse has bolted, you already committed. The time to ask was before you bought the house. You’ve legally committed to paying them

sure you can ask what work is being done, sure you can complain if not done well. But you will have to pay them, irrelevant of who the company is. Because you legally committed to do so. And if you don’t they will come after you.

I think the last response shows exact the issues managing agents face, of course all there is to do is to cut the grass twice a year, of course they are all unethical.

I don’t know where you live but if it’s a large development I’m sure there is more to pay for than just cutting the grass! What about tree maintenance, plant maintenance, weed control, paths need gritting, street lights need maintaining, streets need litter picking. That’s without getting to gate maintenance if it’s gated, are there a concierge services, security, playgrounds, water features, gym facilities etc. everyone thinks these are lovely things to have but no one actually wants to pay for them or appreciates the costs involved.

You may find there is eventually an option to get involved - My dad is the area rep to his estate management board, so you could offer your services?

Yes, I am contractually committed to paying the fees, but my commitment is based on them fulfilling their side of the contract - it goes both ways. If they are providing the services as agreed, then there aren’t any problems. However, I don’t intend to act on that commitment until I have the information and assurance I’ve asked for.

I’m also pretty sure that we must have some ability to influence who provides these services. We’re a small group of owner-occupied houses, and there’s no landlord or builder involved anymore. Hypothetically, if the current estate management company were to dissolve, I feel confident that it would land with us, as homeowners, to find a new one.

This suggests to me that if we could find a new management company in such a scenario, we should be able to find a new one at any point if we felt the current company wasn’t performing to our expectations (subject to any terms and conditions that the builder may have signed on our behalf when they appointed this company in regards to terminating the contract).

Thank you for your response, @Purplepepsi.

That’s interesting to hear about your dad’s involvement. I’d like to know more about how he got that opportunity. Did he approach the management company to offer his services, or did the management company reach out to the property owners for representatives?

I don't think you can simply withhold the fees until you are "satisfied". You may find out that it becomes an expensive argument.

You should be able to vote to change the company depending on the contract. First read your contract and then see if there is a residents' association or similar. It's likely to be quite time consuming to evaluate all the companies and someone (you?) will have to do the work.

If you are a group of houses and the communal area is insured - which it will have to be - and lit, which I expect it is, then it's not as if you can say that you won't pay.

All of you - including you - are benefitting from the insurance and the lighting and the management company can't just stop the insurance or the lighting for everyone because you choose not to pay.

Your neighbours may not appreciate it if they are paying and you are not. However you know your estate best and are the best judge of the situation.

First, thank you all for your input so far.

I want to clarify: I am fully committed to paying the estate management fees. My intention is to understand the details before handing over my money, which is a sensible approach for any homeowner.

I am seeking transparency about the services provided, the frequency of visits, and the steps we can take if the services are unsatisfactory. This isn’t about avoiding payment; it’s about ensuring we get what we pay for.

Were you sent information on what’s covered during your conveyancing?

The only way you can get more detailed advice is asking your conveyancer. Or you can post your TP1 without personal information on it here.

If it’s anything like ours they will hammer you with late fees and appoint a debt collection agency - I was in hospital and missed payment last year and £90 was added to fees which I did manage to negotiate off

When you received the request for payment did it not include a budget which outlines how much they’ve forecasted for each service? This is usually sent as standard. Request a copy if you don’t have it along with any guidance notes and go from there.

I think it’s also worth mentioning that you pay service charges in advance, if the development is that new then they may have forecasted an amount but contracts for services may still be being negotiated.

Of course hold them accountable to ensure you’re receiving what you are paying for, but also ensure you keep your questions relevant and concise. In reality Property Managers are over worked, they always have been and it’s only got worse with the implementation of the BSA, regardless of what company you move to.

A long email asking lots of different in-depth questions that don’t make a difference to the situation just means they have to find the time to answer each question and this is then less time they have to proactively manage the development and the appointed contractors. Picking battles of the most minute matters just makes the development harder to manage and means they actually do a worse job.

I live on this type of estate and all the owners are members and can be directors if they wish. My dh is one of the directors and it is possible to appoint another management company. Ours organises the gardening for the communal area (grass is cut every other week in summer), files paperwork with companies house, collects fees, attends the AGM, organises the health and safety review, organises repairs etc.

Thanks for letting me know. That's really helpful. How did your DH become a director? Did he approach the management company or did they approach him?

I can only advise from my experience of the small estate we live on and the regulations in our TP1. When the estate was finished the developer appointed a company to manage the estate and asked owners to become directors of the ‘estate company’. The company which manages the estate does so on behalf of the directors and members (all homeowners are members) and the directors can choose another company to take on this role if they wish. The mgt company has no say in choosing directors and any member can become a director, does not need the support of any other members. Directors are usually appointed at the AGM and it’s simply as case of a member saying - I want to be a director- . Dh is a retired finance director and takes a very active role in what’s going on eg liaising with the gardening contractor, looking at the amount in the sinking fund, checking the accounts and has a good relationship with the estate mgt company.

re estate fees- my dh and the other directors set the budget with the property manager.
it’s a common misconception that the property manager is in charge, but they work for the members and directors and if the service is poor then finding another property manager is always an option.