Change to your Managing Agent - What you need to be aware of (Part 2 of 2)
Introduction to Part 2
In the first part of this Blog, “Change to a Managing Agent – what you need to be aware of”, we explored why a change might occur and what you should be aware of if it happens. In this part we explore what you need to do to manage the process well.
How do I manage the change well?
When you first become aware that there is going to be a change to the managing agent ensure you are proactive and document when the change is going to be effective from. This will allow you to advise your Accounts Payable Department accordingly and any other stakeholders that need to be made aware, to ensure payments are only made to the correct managing agent.
Contact the current managing agent and obtain a transaction history for you to verify – the sooner that you do this the easier it will be to deal with any discrepancies. Remember, there may well be a limited time window when the outgoing managing agent will be able to assist with any queries due to their access rights to the account, and ensure you are thorough and document the process you have followed so that for future activities you can learn from how the change was managed.
And what can I do NOW?
The old maxim, that “if you fail to prepare, you prepare to fail” strikes a chord. A change in a managing agent is an entirely foreseeable event. If you have a large retail estate, you will likely have this happen with one or more of your properties each year. So, it is entirely possible to make a proper plan that can be implemented as soon as you are notified. You should not have to make this up “off the cuff”.
The following can be used to create an effective plan – if you haven’t already got one in place.
If you are informed that your managing agent is changing, here is a checklist of actions you may consider taking:
Review the Notice: Carefully read and understand the notice provided by the current managing agent regarding the change. Note important dates, such as the effective date of the transition and any interim arrangements.
Communicate with the Current Managing Agent: Seek clarification from the current managing agent, of any outstanding matters that need to be addressed before the transition.
Contact the New Managing Agent: Initiate contact with the new managing agent to introduce yourself and your property.
Verify Financial Aspects: Ensure that any financial matters, such as the transfer of funds or security deposits, are handled appropriately and transparently.
Notify Stakeholders: Inform relevant stakeholders about the change in managing agent involved in the property management. Provide them with the necessary contact details.
Remember to adapt this checklist to your specific situation and consult professionals (such as legal counsel, property management experts or property audit experts) to enable a smooth transition. This will ensure firstly that no value is lost to your business in the transition, and secondly a continuity of effective property management.
Final things to remember
Firstly, act now while you have time: if you don’t already have a clear plan in place, then get someone in your team to do this as a high priority. Remember the next change you could be notified of could be tomorrow.
This will help to minimise potential future problems and will ensure that, when the time comes, you will be able to respond quickly. Remember, time is of the essence.
Secondly, be proactive: review your current leases to ensure that they are being correctly managed, and check that that any previous changes in managing agent (or other changes to your leases) have been implemented effectively. If you have neither the resources nor the capability to undertake a review like this, then consider an external independent company to provide the review. They will be focused on your best interests and ensure that your leases are reviewed dispassionately to ensure that they are being effectively managed and that you have not lost money in the process.
For every £100m of rental spend, more than £1m can be recovered and with the opportunity to go back up to 14 years in any review the financial benefits for past and future savings can be considerable.
Written by Mark, Property Audit Manager
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