What is a Resident Management Company:
A Residents’ Management Company (RMC) is a non-profit company formed for the management of an apartment block or an estate, with each leaseholder/owners becoming a shareholder or member. The Resident Management Company ensures the management and maintenance of communal areas, finances, and organising relevant insurances, such as Public Liability, Building Insurance or Engineering Insurance. Managing Agents such as Sapphire are often hired by the Directors of the Resident Management Company to handle the daily management tasks on their behalf and assist directors with upholding their legal duties.
Key Functions:
Manages Communal Areas: Maintain grounds, roofs, hallways, gates, and other shared communal spaces.
Financials: Collect service charges and any arrears on behalf of the Resident Management Company, organise and pay insurances, prepare and manage budgets, organise/prepare service charge accounts.
Maintenance & Repairs: Arrange cleaning, grounds maintenance, general repairs, decorating, and major repairs.
Legal Compliance: Ensures adherence to lease agreements, health & safety, fire safety and Companies Act duties.
How it Works:
Formation: Usually an RMC is created by the developer making residents shareholders or members (often one share per flat/unit).
Ownership: When a flat is sold, the share/membership in the RMC transfers to the new owner.
Directors: Leaseholders/Owners can volunteer as directors, managing the company and appointing Managing Agents for the day-to-day operations and ensuring adherence to the Lease/TP1.