A managed development is typically overseen either by the freeholder, developer, Resident Management Company (RMC), or Right to Manage Company (RTM). Alternatively, they might opt for the expertise of a seasoned property manager, such as Oak Property.
Defining a Resident Management Company (RMC)
An RMC is a structured limited company, often established by a new site’s developer. Its primary role is to ensure the sustained value and maintenance of the development. Comprising equal members (commonly the leaseholders of the development), it empowers residents to have a say in their development’s operations. These members select Resident Directors (or RMC Directors) to make development-centric decisions on behalf of all leaseholders.
A robust team of Resident Directors is pivotal to the success of an RMC. Given that an RMC functions as a limited company, Resident Directors bear specific legal obligations that must be diligently observed. These responsibilities encompass:
- Preserving all requisite statutory records and notifying any modifications.
- Maintaining precise financial documentation for the RMC.
- Ensuring adherence to pertinent laws and regulations.
- Securing appropriate insurance to safeguard both the directors and the development.
RMC’s Core Responsibilities
An RMC holds the mantle for the upkeep and preservation of the building and its communal spaces, aligning with the stipulations of individual home deeds or leases. Its duties span decisions regarding service charge funds allocation, ensuring resident safety, and upholding statutory prerequisites such as health and safety norms. Ensuring compliance with landlord and tenant regulations is paramount. Being a limited entity, an RMC must uphold various legalities, such as keeping statutory and financial records accurate and having the requisite insurances to shield the development and themselves.
RMC and Property Manager Synergy
Post the developer or freeholder’s management transfer, the RMC deliberates on the management style for the development – self-management or collaboration with property management firms like Oak Property.
Property managers act as pillars of support for RMCs.
Their expertise ensures that regulatory compliances are met, buildings are secure, and daily operations remain seamless for leaseholders and residents. With over 40 years in the sector, Oak Property’s property managers are bolstered by in-house specialists spanning various domains.