Advice please

Discussion in 'General Business Forum' started by Tim Mason, Jan 4, 2019.

  1. Tim Mason

    Tim Mason UKBF Newcomer Free Member

    11 1
    I am a resident and director of a small block of flats.
    We have a management company that is managed by a bloke in an estate agents.
    Recently, I have had suspicions about him.
    All the flats [11] contribute £80 a month.
    I have found out that there's only a few hundred pounds in that account, when I expected thousands.
    I asked him, by email, if I could see a bank statement.
    On the 4th email he replied and said that I couldn't see a bank statement.

    What do I do?
     
    Posted: Jan 4, 2019 By: Tim Mason Member since: Jan 4, 2019
    #1
  2. Root 66 Woodshop

    Root 66 Woodshop UKBF Big Shot Free Member

    4,631 1,247
    Has there been any maintenance or repair works completed over the last 12 months?

    If so, then you can ask to see all corresponding invoices for works completed... You can ask to see a statement, but that's about it.

    He's probably paying himself a management fee - despite not doing anything... Personally, I'd seek legal advice over the matter as the Management companies bank account is not related to you... then look into getting another management company in and get rid of the bad egg.
     
    Posted: Jan 4, 2019 By: Root 66 Woodshop Member since: Nov 22, 2011
    #2
  3. Nochexman

    Nochexman UKBF Enthusiast Free Member

    1,752 277
    Do you not already receive an annual statement associated with the management of the flats? What does that say?

    How do you know how much money there is in the flats' bank account?
     
    Posted: Jan 4, 2019 By: Nochexman Member since: Jun 14, 2011
    #3
  4. Tim Mason

    Tim Mason UKBF Newcomer Free Member

    11 1
    I just get the annual accounts

    He told me how much was in there, due to a current bill.
     
    Posted: Jan 4, 2019 By: Tim Mason Member since: Jan 4, 2019
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    12,423 1,312
    Then get the directors to change management companies if you think he's not providing value for money.
     
    Posted: Jan 4, 2019 By: Mr D Member since: Feb 12, 2017
    #5
  6. billybob99

    billybob99 UKBF Regular Free Member

    661 117
    Tell him if he wants to see his P45?

    Find someone else.
     
    Posted: Jan 4, 2019 By: billybob99 Member since: Apr 23, 2013
    #6
  7. Tim Mason

    Tim Mason UKBF Newcomer Free Member

    11 1
    I/we want to get hold of that bank statement.

    Any ideas?
     
    Posted: Jan 4, 2019 By: Tim Mason Member since: Jan 4, 2019
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    12,423 1,312
    Do you have a right to that bank statement?
    Is the management company his business or your business?
     
    Posted: Jan 4, 2019 By: Mr D Member since: Feb 12, 2017
    #8
  9. Newchodge

    Newchodge UKBF Big Shot Free Member

    11,305 2,894
    Do you mean you are a director of the management company? If so, call a board meeting, tell the directors of your concerns, instruct the bank to give you bank statements, then decide whether to call the police or just sack the bloke.
     
    Posted: Jan 4, 2019 By: Newchodge Member since: Nov 8, 2012
    #9
  10. Ground Investigator

    Ground Investigator UKBF Newcomer Free Member

    26 4
    I know of a block of flats local to me where all the residents are invited to attend Annual General Meetings where votes are held on decisions relating to maintenance of the flats. A small minority of the residents are Directors, including a representative of the Managing Estate Agent. The Annual Accounts are distributed so that all the residents can see where their Maintenance Charge is spent. From what you have stated, Tim, it seems that you have seen the Accounts. That might have given you a snap shot Balance Sheet in abbreviated form at least. Or do you see detailed accounts itemising income and expenditure? In reality, though, what are your actual concerns? Are the flats maintained OK or do you have a complaint in that regard? One trap that this type of arrangement can fall into over time is that when the effectiveness of a long standing maintenance charge is eroded by inflation and an unwillingness to approach residents about an increase then the bank balance naturally suffers. How long have you been a resident?
     
    Posted: Jan 5, 2019 By: Ground Investigator Member since: Jan 4, 2019
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    12,423 1,312

    Another trap I have seen way too often is when a few residents push for more and more improvements over time, driving up the maintenance charge.
    Move into a flat with 40 a month maintenance charge, 5 years later it's 300 a month charge and much harder to sell the flat.
     
    Posted: Jan 5, 2019 By: Mr D Member since: Feb 12, 2017
    #11
  12. Noah

    Noah UKBF Ace Free Member

    1,042 250
    What's the motivation? Genuinely want a "nice" place, or drive the undesirables out, or just being a pillock because they can?
     
    Posted: Jan 5, 2019 By: Noah Member since: Sep 1, 2009
    #12
  13. Mr D

    Mr D UKBF Legend Free Member

    12,423 1,312
    Could be all 3 working together.

    Nice is somewhat subjective. Can spend 100 pounds a year or ten grand a year having plants / flowers outside flats.
     
    Posted: Jan 5, 2019 By: Mr D Member since: Feb 12, 2017
    #13