Can an RMC Change Its Managing Agent?

An RMC can potentially change its managing agent, but the process should start with the company’s existing management agreement and the leases or other documents governing the development.

Check the current agreement

Review notice periods, termination provisions, renewal terms and any requirements for handing over records, funds and contracts.

Discuss the change with the directors

The RMC’s directors should understand why a change is being considered and what services the company needs from a replacement agent.

Request proposals

Ask prospective agents to provide a clear scope of service and fee structure. Compare the practical service offered as well as the headline management fee.

Plan the handover

A good handover should cover financial records, service charge information, resident records, contractor details, keys, compliance documents and ongoing works.

Keep residents informed

Clear communication can make the transition easier. The timing and content of resident communications should be agreed with the RMC.

If your RMC is considering a change, DMS can discuss your requirements and provide a proposal.

General information: This article is not legal advice; the agreement and circumstances should be reviewed for each development.