Constant price hikes by property management company?

Constant price hikes by property management company?

10:51 AM, 16th June 2020, About 3 years ago 14

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I have two small flats in a small development of 7 which I rent out privately. A couple of years ago we got a new Freeholder who appointed a new Property Services Management Company. Every year the prices are increasing especially regarding admin fees and buildings insurance.

This year they wanted to increase the admin fees by 19%! The buildings insurance went up by £350.00. We got together and complained when the fees were reduced to 5% as a ‘goodwill gesture’! The buildings insurance remains the same. We seem powerless to stop this happening every year when the budget is set.

My question is are there any limits to fee increases and is there an industry standard ceiling say inline with inflation? Also how do we know they are getting the best price for insurance?

Finally is there any cap on the amount the freeholder can charge for ground rent as I suspect that will be next for a hike!?

We are not in a formal residents association and the price to buy the freehold is way too expensive.

Terry


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Comments

Mark Weedon

11:35 AM, 20th June 2020, About 3 years ago

You need a majority of owners to participate. In your case 4. You don't all need to be directors (many are reluctant) you only need 1.
Make sure you take out directors and officers insurance.
Good luck.

Mervin SX

20:02 PM, 20th June 2020, About 3 years ago

Reply to the comment left by Professor W at 16/06/2020 - 11:52
Professor W,

Do you have a contact email address for Christine Gray?

Thanks,
Mervin Xavier

tony

13:54 PM, 15th August 2020, About 2 years ago

Where is the property? it sounds like the same development that I own a property in which is in Surrey, with an agent that keeps increasing there costs and the service charges each year.

Professor W

15:15 PM, 15th August 2020, About 2 years ago

Reply to the comment left by tony at 15/08/2020 - 13:54
it was in southend, essex

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