Why we charge a one-off Set-Up Fee

When a new management company takes over a block, it’s rarely a "plug-and-play" situation. More often than not, it’s a rescue mission.

At the start of our appointment, we charge a one-off set-up fee. This isn't an arbitrary "welcome" charge; it represents the intense, behind-the-scenes labour required to untangle the past and build a functional future for your property.

Here is exactly what that investment covers and why it’s important.

1. Playing "Paperwork Detective"

One of the biggest hurdles in taking over a block is chasing the previous managing agent. In an ideal world, they would hand over a tidy digital archive. In reality, we often spend weeks—sometimes months—persistently chasing down:

• Historical Financial Records: Ensuring every penny of the service charge and reserve fund is accounted for.

• Compliance Certificates: Finding out if your fire safety and health & safety audits are actually up to date (and valid).

• Legal Data: Securing the keys, codes, and contracts that are essential for daily operations.

2. Navigating the Legal Landscape

Every lease is unique because they are created by different solicitors. We use the set-up period to perform a deep-dive audit of these documents. We need to know exactly who is responsible for what, which costs can be recovered, and whether there are any specific legal covenants that have been ignored. Getting this right at the start prevents expensive legal disputes down the line.

3. Clearing the "Maintenance Backlog"

We often inherit blocks with a long list of catch-up maintenance. These are the "I’ll get to it eventually" jobs that the previous management let slide—peeling paint in the hallways, flickering lights, or that persistent damp patch in the bin store.

During the set-up phase, we:

• Identify the "Must-Fix" List: We document every neglected task to create a clear roadmap for repairs.

• Prioritize Safety: We separate cosmetic issues from urgent repairs to ensure the building is safe and functional as quickly as possible.

4. The Human Element: Meeting the Community

A block isn't just a building; it’s a community of stakeholders. We use this initial phase to establish the relationships that make management work:

• The Board or Freeholder: To align on the long-term vision and financial strategy.

• The Leaseholders: To listen to past grievances, answer questions about the change in management, and set clear expectations for how we work.

Why is this a separate, one-off fee?

We believe in transparency. Ongoing management fees are designed to cover the day-to-day running of a building. However, the initial "heavy lifting" of chasing agents and auditing years of neglect requires a massive, front-loaded effort.

By keeping this as a one-off fee, we ensure:

1. Fairness: You aren't paying an inflated monthly rate forever just to cover the initial transition work.

2. Focus: We can dedicate a specialized team to your block’s "rehabilitation" without distracting from daily service.

3. Accuracy: We get the foundation right the first time, so the rest of our partnership is smooth sailing.