Expected codes of practice from your agent

CONTRACTUAL DUTIES

• To agree, in writing, the terms of engagement to manage a client's property, in as detailed a form as is reasonably possible, and to make clear the fee structure and the categories of other services for which additional fees may be charged.
  
• To manage the client's property in compliance with all the current applicable legislation, terms of leases, contract documentation and good business practice.
  
• To provide as cost-effective a service as is reasonably possible within the constraints of prudent and planned maintenance and to enquire as to whether contractors preferred or selected by clients or lessees have suitable references and, where contracted to do so, that all final work is checked and signed off before funds are released.
  
• On request, to provide guidance to the client as to the insurance requirements under the lease terms and, where required by the client, to supply an appropriate level of insurance cover, based on an independent valuation, sufficient to meet the client's obligations.

FINANCIAL DUTIES

• To ensure that client's money is kept separate from office accounts at all times and that client accounts can be individually identified. Funds in any one client account will not be used to finance another client's property. Funds shall be held in a recognised bank or building society in a clearly designated client account.
  
• To maintain a current insurance policy adequately indemnifying the firm against proven professional negligence claims.
  
• To ensure that clients' money is properly and regularly accounted for and that any funds or monies required for specific future works are placed on deposit in an appropriate interest-bearing account to earn interest to the credit of that account.
  
• To keep detailed records of all transactions relating to client's property with all expenditure made from the client's account suitably authorised.
  
• To ensure that annual or other required periodic accounting is carried out promptly, ensuring adequate supporting information is provided or available for inspection.
  
• To concertedly endeavour, where so required, to provide all the necessary information for the audit of any end-of-period accounts so that the audit can be carried out.

The information contained in this article has been taken from the publication Appointing a Managing Agent produced as a joint publication by ARMA, the Association of Residential Managing Agents, ARHM, the Association of Retirement Housing Manager and LEASE, the Leasehold Advisory Service.

The ARMA document Appointing a Managing Agent Guide is available as a PDF file.(531 Kb)