If a landlord/freeholder is looking to sell their interest in a building or group of buildings, tenants often form a property management company as the vehicle with which they purchase the property's freehold.WHAT'S INCLUDED
The types of property most often bought by property management companies are commercial properties, blocks of flats, or housing estates which are divided into units. Each of these units is normally owned by a company or a person who may trade or live in that unit or lease/rent it out.
Property management companies also take responsibility for the repair and maintenance of property and land - "the facilities". These responsibilities include but are not limited to cleaning costs, decoration of common areas, grounds maintenance, garden maintenance, caretaking, security, roof repairs, gutter repairs, lifts maintenance, and more. Property management companies are responsible for paying insurance, rates, and other taxes.
Property management companies do not always buy the freehold from a landlord - they sometimes purchase the head lease instead. The company then issues sub-leases to unit holders who pay the property management company for the provision of services. In this situation, the head lease holder is still responsible to the freehold owner of the building and/or land.
Your property management company may be either a company limited by guarantee (not for profit) or a company limited by shares (allowing profits to be distributed to the shareholders). Please indicate when ordering which type of company you'd prefer us to set up for you.
For help and advice on forming a property management company, please call us on (telephone number) or email us at (email address).
Our service is automatic - when you complete your property management company registration on our website, we'll check the details and submit them straight away to Companies House. As soon as they have approved the documents and you have been incorporated, we'll email you to let you know.
Companies House charge for the registration of property management companies - all Companies House fees are included in our price. Your Company Formations has always had a transparent pricing structure so you know what you're paying for and how much it costs before you choose to use us.
By choosing our right to property management company formation package, you'll receive electronic copes of your Certificate of Incorporation, your Memorandum of Association, your Articles of Association, and your Shareholder or Guarantor certificates.
In nearly all circumstances, you'll be ready to start trading on the same day that you form your right to property management company through us.
For every property management company, it's important to have a bank account to handle company cash to pay suppliers and contractors and to offer merchant facilities so that you can take payments from domestic and commercial tenants. We can organise both for you and pay you (or an organisation of your choice) up to £55 cash back.
We have always provided free support and advice to all of our clients via telephone, email, and our website chat portal. We work with clients before, during, and after the set-up of their property management company.
You can easily manage your property management company using our internet portal. It's easy to make changes to your company details when needed and our service saves you additional costs and fees in the future.
One problem many tenants or commercial leaseholders have with their freeholder or their freeholder's managing agent is their lack of availability when needed. Sometimes, substantial sums of money are paid into a sinking fund while the fabric of the building is left to slowly deteriorate over time. Often, even if something requiring repair is reported quickly, it can be days or weeks before it is seen to by a contractor because the nature of the issue requiring repair is low down a freeholder or managing agent's priority list.As the part or full owners of a property management company, you have more say over the common areas and their upkeep, the service charges you pay, the managing agent you choose, and over the eviction of problem tenants.
There is little difference between the two other than that a company limited by shares has shareholders and a company limited by guarantee has guarantors.If you are forming a property management company with the purpose of acquiring a building and the land around it, you may wish to consider a company limited by shares as this gives a more definite type of ownership of the building and land.A company limited by guarantee is generally easier to administer, especially if there is a high turnover a tenants within a building. If you choose this structure, you will normally be entitled to a vote at board meetings for each unit you hold within a building.
A property management company has to meet the same requirements as other companies of its type under the Companies Act 2006. You must keep registers on the company's members, directors, secretaries, and charges and those registers must be made available for inspection by anyone wanting the information. If your property management company is a company limited by shares, you will also need to keep a register of directors' interests, share allotments, and share transfers.You must notify Companies House when any details of the company change including on issues of share sales, share transfers, changes of directors, and directors' service address changes.
As a general rule, property management companies must list in their Articles of Association the company's objects - specifically the configuration of the building and the land and the company's responsibilities for maintenance, repairs, insurance, and so on. You should also consider making provision in the Articles for future purchases of land, particularly adjacent land. You may also structure the articles for the issues of different share classes and attached voting rights.
Yes - you must file these annually.
The freehold will pass to the crown and the tenants may face severe difficulty selling on their units to others.