Property Management Company (PMC)
What is Property Management Company?
Last Update 7 months ago
Property Management, known as a 'flat management company', is the daily oversight of commercial, residential, or industrial real estate by third-party contractors on behalf of a landlord. Basically, property managers are taking care of finding and assessing tenants, preparing tenancy agreements, the maintenance issues, day-to-day upkeep of the property, managing finances between the tenants and landlords, security, etc.
It is a Landlord's or owner of the property's responsibility to pay the property managers a fee or a percentage of the rent generated by a property while it is under their management.
If you want to set up PMC, your company needs to be licensed, meaning your company needs to be regulated by one of the government-approved redress schemes.
The approved schemes are The Property Ombudsman and Property Redress Scheme. If you cannot provide your license and you act as a PMC, you are facing a fine of up to £5000, and you can be banned from performing your duties.
The scheme is to protect not only property managers but tenets as well in case of a dispute.
Your PMC can be Limited by Shares or Limited by Guarantee, therefore you need to register it at Companies House, have a Registered Office Address, have all their members listed on the registrar along with their Service Address, and submitting annual accounts and confirmation statements to HMRC.
When forming Property Management companies, it is a requirement Memorandum and Articles of Association. The objects in your Articles of Association must list: the configuration of the building, the land, and the company's responsibilities for maintenance, repairs, insurance.