Changing managing agent: how the handover works and when to start planning
Many management agreements run to the end of December or the end of March, and the decision to renew or move often gets left until the last minute. For resident directors, RTM companies and freeholders thinking about a change, the quality of the handover matters as much as the choice of new agent. A rushed handover can leave gaps in funds, records and compliance that take months to put right.
The good news is that a well-planned handover is mostly a matter of timing and a clear checklist.
Start with the management agreement
Before anything else, find the current agreement and check:
The end date, and whether it renews automatically.
The notice period, and how notice must be given (usually in writing, to a named address).
Any termination fees or handover charges.
Record the board's decision in the minutes and give notice exactly as the agreement requires. If you are an RTM company taking on management for the first time, work back from the date management passes to the company, so the new agent is ready from day one.
Be clear about what you want next
A change of agent is a chance to reset expectations. Agree as a board what matters most, for example:
How quickly queries and repairs are acknowledged and dealt with.
When budgets and year-end accounts will be produced.
How compliance is tracked and reported to the board.
What the fee includes, and what is charged separately.
Ask any agent you are considering how they run a handover, and for a written timetable.
What a good handover transfers
The outgoing agent should hand over everything the building needs, in one organised package:
Service charge and reserve funds, with a reconciliation to the handover date.
Leaseholder records: contact details, leases, payment history and arrears.
Budgets, year-end accounts and supporting invoices.
Insurance policy, schedule and claims history.
Compliance records, including fire risk assessments, fire door inspections, electrical testing, water hygiene and lift inspections.
Contractor contracts, warranties and planned maintenance information.
Open repairs, complaints and recent correspondence.
Plan the cut-over date
Agree a single handover date and work to it. Before that date:
Write to leaseholders explaining the change and when it takes effect.
Confirm new payment details in writing, and remind leaseholders to verify any change of bank details directly with the new agent before paying. Fraudsters target handovers.
Tell contractors, utility suppliers and the insurer who to deal with from the handover date.
Make sure standing orders and direct debits are redirected.
The first few weeks
Once the new agent is in place, the board should expect a short handover report: funds received and reconciled, any missing records chased, compliance gaps identified, and a site inspection completed. Gaps found early are far easier to resolve than gaps found at year end.
How Temphis can help
We run handovers to a set timetable, from notice through to reconciliation, compliance review and a first report to the board, so directors know exactly where the building stands. If you are thinking about a change of managing agent, contact the Temphis team to talk about how we can support you and your building.