How to switch from a managing agent to self-management

Can you switch?

If your company owns the freehold, or is the RMC or RTM company with management duties, it appointed the agent and can usually end the appointment under the contract. If an outside freeholder appointed the agent, you need the right to manage or to buy the freehold first.

Read the contract

Look for the notice period (often three months), any minimum term, termination fees and what the agent must hand over. If the contract is longer than 12 months and cost each flat more than £100 a year, it may have needed section 20 consultation; ask a solicitor if that affects termination.

Decide as a board

Record the decision in board minutes. If your articles require members to approve, hold a vote. Plan who will do what after the switch: approving invoices, booking contractors, answering leaseholders and keeping compliance up to date.

Give notice and ask for the handover

Give written notice under the contract and ask for a full handover by a set date, including:

• all service charge and reserve funds, with bank statements and a reconciliation;
• the accounts and ledgers, including arrears for each flat;
• leases, the articles and company records;
• current contracts, insurance policies and claims history;
• fire risk assessments, compliance certificates and asbestos surveys;
• keys, fobs, codes and supplier contacts.

Service charge money is trust money: the agent must pay it to the company’s trust account, not keep it to settle disputes about fees.

Set up the company to self-manage

Open a trust-designated bank account in the company’s name, take out directors’ and officers’ insurance, check the buildings insurance is in the company’s name, and tell leaseholders the new address for payments and notices.

Keeping it running

The work does not stop at handover. Self-managed blocks fail when everything relies on one volunteer. Spread tasks across directors and keep records in one shared system.