Are You Aware Of The Costs You Will Incur In Exercising Your Right To Manage?

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The right to manage process (or RTM) can be a fairly straightforward one. If you are feeling unhappy with the way that your landlord manages your block then seek legal advice about setting up a right to manage company and get your fellow tenants on board.

However there will be costs involved in the process, so it makes sense to be aware of these before you begin. Something to consider is that it will not be you alone covering these costs, even if it was you who started the process. However many tenants are involved in the whole right to manage process, the costs will be divided equally between all of you.

However a there is a caveat alongside this. If you are going to be a director of the company you could be liable for all debts if someone else does not pay. This applies to the regular maintenance payments as well. Should a tenant decide to withhold their payments for some reason, or they simply cannot pay them, you will have to make sure you cover what they owe.

As far as the initial costs are concerned, you will obviously have the solicitor's fees to bear in mind - and do make sure when you appoint a solicitor, that you pick one specialising in right to manage cases. However there are also other fees which will be payable by the newly formed company. For example when a company is created a fee should be paid over to Companies House. You will also be liable for the legal costs charged to your landlord. After all, he cannot reasonably be expected to pay for the process when he has not initiated it.

You might feel like the fees are steadily increasing at this stage. But remember that you should not be the sole person to handle them. Every tenant who has a role in the new RTM company will have their share to pay, and this dilutes the total cost down considerably.

You can probably see though that the right to manage a block of flats does come at a certain cost. It is always best to know about this in full before you embark on the process. The more in the know you put youself, the more you will understand a feel confortable with the procedure and the happier you will feel when it concludes.

About the Author:
Bonallack & Bishop are a firm of solicitors experienced in advising on the right to manage and right to manage leasehold properties. Senior Partner Tim Bishop is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 13 years.



Article Originally Published On: http://www.articlesnatch.com


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