Flat/Property Management Companies

Where there are multiple tenants a Flat Management Company is normally used to protect the interests of the leaseholders. The company can either be incorporated as:

• Limited Liability company or
• Limited by Guarantee

A Flat Management Company has its Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer a freehold property, which is normally divided into several dwelling units or flats, with each leaseholder owning a share in the company. The leaseholder will be obliged to transfer the ownership of the share to the new leaseholder when disposing of the property.

Right to Manage

Disgruntled leaseholders will have the right to take over the management of their building, under new Right to Manage (RTM) rules. The new system will not only help people suffering from bad landlords, but is designed to empower leaseholders who want more control in the running of their building.