Service Levels Agreements for a New Block Management Contract
Many people have had bad experience with their managing agents and are looking to switch. However, how can you be sure that the new agent will give you a better level of service?
One way, is to agree some Service Level Agreements (SLAs), which are an upfront set of standards that your agent has to meet.
Some of those that we think are the most important are below.
In general, you should make sure that these focus on the main problems that affect your building. Our suggested SLAs below are designed for a building which requires improved general maintenance, however, if you are completing a large external works project, have some large legal issues or have some other specific problems, SLAs should be included around those.
It is also important that these are agreed upfront and are agreed to all parties. In this way there is little room for misunderstandings and arguments in the future.
The Specific SLA's
Enforcement of Lease and Building Regulations
The managing agent will agree to uphold and enforce all tenants of a lease or share of freehold agreement unless:
- They contradict current UK and local borough laws, regulations and statues
- An agreement is made with the Leaseholder or Share of Freehold committee to disregard or alter these
- The managing agent operates within the RICS Service charge residential management code (3rd edition)
- The managing agent makes a weekly statement of each account available and ensures monthly statements of all accounts are delivered to the building directors
- The managing agent produces a budget in time for the beginning of the financial year
- The managing agent produces a quarterly reconciliation of expenditure to this budget and a corresponding forecast of changes to the year service charge requirements
- The managing agent ensures that all complaints, issues and points raised over email, telephone and mail are acknowledged within 24 hours and assigned for resolution
Maintenance and inspections
- The managing agent commits to completing an inspection of all common parts at least once a month and publishes a complete list of any issues, including but not limited to:
- Damages and wear and tear
- Malfunctioning facilities
- This report will be circulated with building directors along with recommendations on mitigating actions
Procurement processes and quotes
- The individual property manage from the managing agent will be responsible for judging if an invoice to pay is correct – for the right service, for the right amount and for the right building
- The managing agent will ensue that all quotes obtained should be judged of reasonable costs by the property manager, who will be responsible for justifying these quotes.
- The managing agent will ensure that no commissions or kick-backs will be paid to the managing agents from any contractors working for the property without this being fully disclosed to the customer.
Break clauses and contract termination:
- The managing agent will ensure that upon the contract being terminated, all monies must be transferred to the new agent upon instructions, within 30 days.
- The managing agent will incur a daily penalty – to be agreed by the customer if this is not the case
Enter your postcode to begin your search for a better managing agent