5 questions to ask a managing
agent

It’s always good to shop around…

…but as you assess your block management options, make
sure you dig a little deeper, and ask any prospective managing
agent the following questions:

1. Insurance

Does the managing agent obtain commission on insurance premiums?

In our experience most traditional managing agents take a sales commission, sometimes in excess of 50%. It will be taken either directly or indirectly through annual bonuses.

At Urban Owners we never take sales commissions from contractors.

2. Contractor Choice

Who decides the contractors that work on your block?

Traditional managing agents frequently receive a sales commission from their chosen contractor or only appoint companies to which they are related, often based in the same office! If you have a good cleaner or know of a good maintenance company, would you be free to use them?

At Urban Owners you are free to choose whichever contractor you wish, but we are also here to provide you with recommendations if you do not want to get involved in this choice.

3. Disbursements

How many additional charges could you be incurring?

Many managing agents make extra money from so-called ‘disbursements’. Ask them how much they charge to send a letter or charge for a stamp! Although they may only charge a small markup, it makes you question what other charges they are sneaking past you…

At Urban Owners we charge you for what things cost – a stamp is charged at the cost of a stamp.

4. Transparency

Will you be charged if you wish to see contractors’ invoices?

Traditional managing agents give you no transparency of your invoices; most will only allow you to see them for a charge or if you go to their offices.

At Urban Owners, you have your own Block Website, giving you access to every document associated with your block that you could wish to see. What’s more, we don’t pay invoices without first seeking your approval and permission to do so.

5. Termination of contract

What happens if I wish to terminate my contract?

Most managing agents require three months’ termination notice, and many also charge a termination fee equivalent to three months’ managing agent fees. In worse cases still, agents insist upon as much as twelve months’ notice!

At Urban Owners we’re confident that you’d never want to terminate your contract, but if you did, we require only one months’ notice and don’t charge a fee for terminating a contract.

 

ADVERTISEMENT