What is a Managing Agent?
- In the case of residential developments, e.g. a blocks of flats, an individual investor or a property company may hold the freehold, or the owners of the individual flats may own it collectively.
- In the case of leasehold properties the lease is a contract between the lessee, and the freeholder (often referred to as the lessor), under the terms of the lease the freeholder may be required to manage the property e.g. maintain the exterior and common areas, provide insurance etc.
- A managing agent is a person or company appointed by the freeholder of a property, or a management company, to manage that property.
- The managing agent contracts with the freeholder, or management company, to manage the property in accordance with the terms of the lease and statutory requirements.
- The managing agent is only an agent of the freeholder therefore legal responsibility for the full and proper management of the property remains with the freeholder, or the management company.