Changing your managing agent is your right. If you are an RMC director or a freeholder, you are the client. Your managing agent works for you, and if they are not delivering, you are entitled to appoint someone who will. The practical barriers are far smaller than most people expect.
Why people delay — and why they shouldn't
The most common reason RMC directors and freeholders delay switching agents is fear of the unknown. They worry about service charge funds going missing, contractors disappearing, or leaseholders receiving no communication during a changeover period. These concerns are understandable, but they rarely materialise when the transition is handled properly.
The second most common reason is inertia. Switching feels like hard work when the day-to-day problems of a poorly managed building are already exhausting. The reality is that a competent incoming agent will manage the transition on your behalf. Your role is to make the decision. The rest is handled.
Your legal position: If you are an RMC or RTM company, you have a contractual right to terminate your management agreement by giving the notice period specified in the contract. You do not need a reason, and your outgoing agent has a legal obligation to hand over all documentation relating to the building.
Before you do anything: review your management agreement
Locate your management agreement and read it before serving notice. Key things to check:
- The notice period, typically one, two, or three months
- Whether notice must be served in a specific form or to a specific address
- Any early termination provisions or fees
- What the outgoing agent is required to hand over on termination
If you cannot locate the agreement, ask your current agent for a copy. They are obliged to provide one.
The step-by-step process
Appoint your new agent first
Before serving notice on your outgoing agent, appoint your incoming agent. A good incoming agent will want to understand the building, review your current documentation and accounts, and be ready to begin immediately when the handover takes place. Appointing them first means there is no gap in management.
Serve formal notice
Once you have appointed your new agent, serve notice on your outgoing agent in writing, in accordance with the terms of your agreement. Keep a copy and, if sending by post, use recorded delivery. Your new agent can help you draft this notice and ensure it is correctly worded.
Request the handover documentation
Your outgoing agent is required to hand over all documentation relating to the building. Your new agent should issue a formal handover request letter setting out exactly what is required. Outgoing agents who are unhelpful or slow to respond can be reminded of their legal obligations under the RICS Professional Statement on Client Money.
Transfer service charge funds
All service charge and reserve fund monies held by the outgoing agent must be transferred to the new agent's client account. This is one of the most important steps and should be tracked closely. Client money is legally held on behalf of leaseholders and must be transferred in full.
Communicate with leaseholders
Leaseholders should be notified of the change as early as possible, ideally when the decision is made, and again when the handover date is confirmed. They should be given new payment details for service charges and a direct contact for the incoming agent. Clear communication prevents confusion and demonstrates that the transition is being managed professionally.
Typical transition timeline
What the outgoing agent must hand over
Your outgoing agent is required to provide all documentation relating to the building. A thorough handover request should include:
- All service charge and reserve fund account balances and recent statements
- Leaseholder contact details and lease information
- Current and historical service charge accounts and budgets
- Details of all maintenance contracts, warranties and ongoing works
- Insurance documents and renewal dates
- Building safety information, including any fire risk assessments
- Any outstanding arrears and recovery actions in progress
- Keys, access codes and contractor details
In our experience, the quality of documentation handed over is itself a reliable indicator of how well the building has been managed.
What to look for in a new agent
Questions to ask when selecting a managing agent
- Are they a member of a recognised professional body such as The Property Institute (TPI) or ARMA?
- Do they hold client money protection insurance?
- Are they registered with The Property Ombudsman scheme?
- Do they earn commission from contractors or insurers? (They should not.)
- Who will be your named contact, and will that person change?
- How many properties does your named contact manage?
- Can they provide references from similar buildings?
- How do they handle Section 20 consultation?