How to Change Your Managing Agent
Changing managing agent is more common than most leaseholders realise, and less disruptive than most expect. What it involves depends on who holds the power to appoint, and that determines everything from the notice you need to give to how quickly a new agent can take over.
When it is time to change
Most blocks do not switch over one incident. They switch after a pattern: service charge accounts that arrive late or do not reconcile, works consulted on but never delivered, compliance certificates nobody can produce, calls that go unanswered for weeks. If you are a director signing off accounts you do not fully understand, that on its own is reason enough to review.
Who can actually change the agent?
There are three routes, and yours determines the process.
The freeholder appoints. The managing agent works for the freeholder, so the freeholder gives notice. Leaseholders can lobby but cannot compel.
An RTM company appoints. If leaseholders have acquired the Right to Manage, the RTM company holds the appointment and can change agent by a directors decision. This is the most straightforward route.
The tribunal appoints. Where management has failed and the freeholder will not act, leaseholders can apply to the First-tier Tribunal to appoint a manager under section 24 of the Landlord and Tenant Act 1987. That manager is answerable to the tribunal, not the freeholder.
Notice periods
There is no statutory notice period for terminating a managing agent. It is whatever the management agreement says, commonly three months. Check the agreement before doing anything else, because the date you serve notice sets the whole timetable. If you are part-way through a section 20 consultation or a service charge year, we would usually advise on timing rather than switching cold.
What the outgoing agent has to hand over
This is where transfers go wrong, and where it is worth knowing your entitlements. The outgoing agent should provide:
Service charge funds, held on statutory trust under section 42 of the Landlord and Tenant Act 1987, so they belong to the leaseholders and not to the agent
Reserve and sinking fund balances, with supporting statements
Service charge accounts, budgets and the arrears schedule
The insurance policy, schedule and claims history
Fire risk assessments, and the safety case and registration details for any higher-risk building
Contractor agreements, warranties, and any live section 20 consultation
The health and safety file, and all compliance certificates
Leaseholder contact records and correspondence history
Delays and incomplete handovers are the most common complaint we see. Agents regulated by RICS and registered with a redress scheme are bound by professional obligations on handover, which is one reason regulatory status is worth checking in whoever you appoint next.
How a transfer to Temphis works
1. Review, at no cost. We look at your current accounts, agreement and compliance position and tell you honestly whether switching will help. Sometimes it will not.
2. Proposal. A written scope and fee, against our published schedule, not a figure invented for your building.
3. Notice. You serve it. We tell you what it should say and when to send it.
4. Handover. We deal with the outgoing agent directly and chase the list above so you do not have to.
5. Site audit. We inspect before we take over, so day one starts from fact rather than from the last agent paperwork.
6. Takeover. Typically four to six weeks from notice, depending on how the outgoing agent behaves.
What it costs
Our fees are published in full on our fee schedule, covering management fees, LPE1 packs, licences to alter, section 20 consultation and project management, all VAT inclusive. There is no charge for the initial review, and no charge for handling the handover itself.
Frequently asked questions about changing managing agent
Can leaseholders sack the managing agent?
Not directly, unless you hold the Right to Manage or the freehold. Otherwise the routes are persuading the freeholder, or applying to the tribunal under section 24.
How long does it take to change managing agent?
Usually four to six weeks from notice, determined mostly by how quickly the outgoing agent releases funds and records.
Will service charges be disrupted during the switch?
No. Demands continue on the existing cycle and funds transfer across. Leaseholders should not need to do anything.
What if the outgoing agent will not hand over the money?
Service charge funds are held on trust and are not theirs to withhold. We pursue it, and escalate to their redress scheme where necessary.
Can we switch mid-year?
Yes. It is cleaner at year end, but mid-year transfers are routine.
Do you take over buildings with existing arrears or disputes?
Yes. Tell us at the review stage so we can price and plan for it.
Request a free transfer review
Temphis manages around 1,000 units across 50 residential buildings for freeholders, RTM companies and developers in London, the South East, the North West and North Wales. We are regulated by RICS, a member of The Property Institute and registered with The Property Ombudsman.
Request a free transfer review and we will tell you honestly whether switching is worth it.
