Changing managing agent is more common than the industry admits and less complicated than most leaseholders fear. The process is mechanical: give the right notice, run a fair tender, complete the handover properly and pick up the file on day one. The reason it sometimes goes wrong is that one of those steps gets skipped.
This guide is for RTM directors, RMC directors and freeholders thinking about a change. Leaseholders in unmanaged or badly managed blocks - we deal with those situations all the time, so the practical points apply just as much if you are still working out what your status is.
1. Who has the power to change agent
Three groups can change managing agent without the freeholder's consent:
- An RTM company, by board resolution
- A Resident Management Company that owns or has been granted the management functions under the lease, by board resolution
- Leaseholders collectively, by exercising Right to Manage if they do not already have it
If the freeholder appoints the agent and the leaseholders do not have RTM or an RMC, the freeholder makes the call. Leaseholders who are unhappy in that situation usually need to either trigger RTM or, in extreme cases, apply for the appointment of a Tribunal-appointed manager under Section 24 of the Landlord and Tenant Act 1987.
2. Check the notice period first
The existing management agreement will specify a notice period. Three months is typical, sometimes six. Read the contract before you do anything else. Serving notice without a clean termination clause can drag the handover out for months and complicate the budget.
Most decent agents will not hold a block hostage if notice is served properly, but a few will, and the cost of an awkward exit is always borne by the leaseholders.
3. Run a proper tender
Three quotes is the working minimum. Five is better if you have the time. Send each agent the same brief: number of units, height, age, lift, last EICR, last FRA, current budget, current service charge, known issues, RTM or RMC status. The aim is to get back like-for-like proposals.
We covered how to compare quotes properly in our block management cost guide - the same checklist applies here.
4. Vote and document the decision
RTM and RMC directors should pass a board resolution appointing the new agent, conditional on the existing contract being terminated. Minute the decision. If your articles require a member resolution or AGM approval, do that too. This matters - poorly documented decisions are the most common reason an outgoing agent refuses to release the file cleanly.
5. Serve notice on the outgoing agent
Notice should be in writing, dated, signed by a director and sent by recorded delivery and email. It should cite the relevant clause of the management agreement and state the termination date.
On the same day, ask the outgoing agent for:
- A current statement of the service charge bank account
- A schedule of arrears and credits per leaseholder
- A schedule of all live contractors and contracts
- All compliance documents (FRA, EICR, asbestos, water hygiene, lift LOLER, BSR if applicable)
- Insurance policy and schedule
- Companies House filing status for the RTM or RMC
- An accrual schedule for unbilled work
6. The handover - where money gets lost
The handover is where blocks lose money if it is not run tightly. Watch for these:
Bank balance transfer
Client money sits in a designated client account. The outgoing agent transfers the closing balance to the incoming agent on or shortly after termination. Reconcile the balance against the arrears schedule yourself - a £20,000 transfer is meaningless if it is offset by £18,000 of contractor invoices that have not been paid.
Unpaid contractor invoices
Get a full schedule of unpaid invoices. The new agent picks these up on day one. Contractors who are owed money tend not to respond well when a new agent calls them about a leak the next week.
Live Section 20 consultations
If a Section 20 is partway through, the new agent has to step into the existing process at the right stage. Pausing or restarting it can invalidate prior consultation and reset the clock.
Year-end accounts
The outgoing agent should produce service charge accounts up to the date of termination, even if mid-year. The new agent picks up from there. Without this split, the next year-end accounts become a forensic exercise.
Insurance
The buildings insurance policy stays in the name of the RTM, RMC or freeholder - not the agent. Confirm the insurer has the new managing agent's details for renewal and claims.
7. Day one with the new agent
- Letter to all leaseholders introducing the new agent and the new payment details
- Updated direct debit instructions issued (most agents use GoCardless or similar)
- Service charge demands re-issued or continued depending on the timing
- New online portal access for leaseholders and directors
- Site inspection within the first 30 days, with a written condition report
- Refreshed contractor list - the new agent should not blindly inherit every contractor; some get re-tendered
We handle handovers regularly
We take on around one to two new blocks a month in East London, almost all of them as a switch from another agent. We have a written handover checklist we follow every time. Ask us to send it across before you commit.
8. Common East London pitfalls
- RTM minutes that are too vague to hold up if challenged - get them tightened before serving notice
- Service charge accounts that have not been produced for two or three years - the new agent has to catch up before they can budget properly
- Insurance renewing into the handover window - confirm who is responsible for the renewal in writing
- BSR-registered buildings with no maintained safety case - this needs the new agent to take on the Principal Accountable Person workstream from day one
- Outgoing agent refusing to release records - rare, but if it happens, escalate to their redress scheme
Speak to our team about your block
We manage residential blocks and estates across Romford and East London. If this article raised a question about your specific situation, send it across - we will give you a straightforward, plain-English answer.