Can Leaseholders Change Their Managing Agent? A Practical Guide

If your managing agent is slow to respond, difficult to contact, unclear about service charges or simply not delivering the standard of service your building needs, you may be wondering:

Can we change our managing agent? In many cases, yes.

But the process depends on how your building is structured and, most importantly, who has the legal authority to appoint the managing agent. This is where many leaseholders get stuck. They assume that because a particular property management company has always managed the block, that company is somehow permanently attached to the building.

It isn’t necessarily. A managing agent is usually appointed to carry out management functions on behalf of whoever has the legal responsibility for managing the building. Depending on the structure, that could be a freeholder, Resident Management Company (RMC), Right to Manage (RTM) company or another party.

So before you start looking for a replacement, the first job is to work out who actually has the power to make the change.

What Does Bad Property Management Look Like?

Sometimes the problem is obvious. Other times, it builds up slowly.One unanswered email might not be enough to justify changing an agent. But if residents have been chasing the same repair for months, service charge information is difficult to understand and nobody seems to know what is happening with the building, the problem is bigger than one missed phone call.

Common complaints about poor property management include:

• Calls and emails going unanswered
• Little or no site presence
• Unclear service charge bills
• Poor cleaning and gardening
• Slow repairs
• High or unexplained costs
• Weak contractor management
• No proactive maintenance
• Difficulty obtaining information

Good block management should not be judged purely by how cheap the management fee is. The real question is whether the building is being managed properly, residents are being listened to and the money collected through service charges is being handled responsibly.

If you are comparing what a professional service should actually deliver, it is worth looking at how YHPM measures block management performance, including resident satisfaction, repair response times, communication and service charge collection.

So, Can Leaseholders Actually Change a Managing Agent?

Sometimes directly, and sometimes only by changing the management structure first. This distinction is important.

If your building has an RMC and the RMC has authority under the lease to appoint the managing agent, the directors may be able to terminate the existing management agreement and appoint a replacement, subject to the company’s articles, the lease and the terms of the current management contract. If the building operates under an RTM company, the RTM company can manage the building itself or appoint a managing agent to do the day-to-day work.

But if the freeholder has appointed the managing agent and your building does not have an RMC or RTM arrangement giving leaseholders control, you may not simply be able to vote to remove that agent.

That is where the situation becomes more complicated.

First: Find Out Who Appointed Your Managing Agent

Before approaching another property management company, look at your documents.

You want to establish:

• Who is responsible for managing the building?
• Who appointed the current managing agent?
• Does the lease name a management company?
• Is there an RMC?
• Is there an RTM company?
• Who is party to the management agreement?
• When does the current management agreement end?
• What notice is required to terminate it?

This information can usually be found by reviewing the lease, company information and correspondence from the current managing agent. The structure matters because the person or company that appointed your current agent may also be the party with authority to replace it.

If Your Building Has an RMC

If your development has a Resident Management Company, this can put leaseholders in a much stronger position. An RMC is commonly made up of leaseholders who have a role in overseeing the management of the building. Depending on the lease and company structure, the RMC may appoint a managing agent to handle the day-to-day work. In that situation, the directors may be able to replace the existing agent. But don’t assume the directors can simply send an email saying “you’re fired”. The management agreement needs to be checked first.

Look for:

• Contract length
• Termination provisions
• Notice period
• Break clauses
• Renewal provisions
• Outstanding work
• Handover requirements
• Financial records
• Contractor contracts
• Service charge information

If your RMC is considering whether its current arrangement still represents good value, understanding the actual property management fees and what is included in the service can make the comparison much more useful.

What If You Are Not a Director?

You do not necessarily have to sit back and accept poor management.

If your building has an RMC, check its articles and the relevant provisions in your lease to understand how directors are appointed and how decisions are made. If you want to become involved, you may be able to stand for appointment as a director, subject to the company’s rules and applicable requirements.

However, becoming a director is not just about getting a vote on the managing agent. It comes with real responsibilities. Directors may have responsibilities relating to company administration, finances and the management of the building. Anyone considering taking the role should understand those obligations before putting themselves forward.

What If There Is No RMC?

This is where many leaseholders assume they have no options. They may have options, but the route can be different. One of the most important is Right to Manage.

Right to Manage allows qualifying leaseholders to take over certain management responsibilities from their landlord without having to prove that the landlord or managing agent has done anything wrong. Once the RTM company has acquired the right, it can either manage the building itself or appoint a professional managing agent.

If you want to understand whether this could apply to your building, see YHPM’s guide to Right to Manage before deciding what route to take. RTM is not simply another name for changing a managing agent. It changes who controls the management of the building.

Do You Have to Prove Your Managing Agent Is Bad to Use Right to Manage?

No. This is one of the important differences between RTM and applying for a tribunal-appointed manager.

RTM is generally a no-fault right. You do not have to prove that your managing agent is incompetent or that the building is badly managed simply to exercise the Right to Manage, provided the building and participating leaseholders meet the legal requirements.

There are eligibility requirements, however, so the building and participating leaseholders need to be assessed against the current rules.

What If the Landlord Controls the Managing Agent?

This is the harder scenario. Where the landlord has appointed the managing agent and there is no RMC or RTM structure giving leaseholders control, leaseholders generally have much less direct power to choose the agent.

Depending on the circumstances, leaseholders may need to consider routes such as:

• Right to Manage
• Challenging relevant service charges
• Recognised tenant association rights where applicable
• An application for a tribunal-appointed manager where the legal requirements are met

The tribunal route is generally a remedy for serious management problems rather than a simple way of shopping around for a new agent.

Can a Tribunal Appoint a New Manager?

Potentially. Under the relevant provisions of the Landlord and Tenant Act 1987, leaseholders can apply for a manager to be appointed where the statutory conditions are satisfied.

This is generally used where there are serious problems with the management of a property. The appointed manager is not necessarily a managing agent. The tribunal can appoint an appropriate person to take responsibility for management, who may then use professional contractors or a managing agent. For most buildings, this is a more serious route than simply replacing an agent through an RMC or RTM company.

The Better Route: Change the Agent Properly

If your RMC or RTM company already has the authority to appoint the managing agent, the cleanest solution is usually a properly planned transition.

Don’t rush it. Start by agreeing what is wrong with the current management. Then decide what you actually want from the replacement.

For example:

• Faster communication
• Regular site inspections
• Clearer service charge reporting
• Better contractor management
• More proactive maintenance
• A named property manager
• Better resident communication
• Transparent fees
• Clear performance targets

This gives directors something objective to compare when requesting proposals from alternative agents.

How to Change Managing Agent: A Practical Step-by-Step Plan

1. Review Your Current Management Agreement

Find out when the contract ends and what notice is required. Do not appoint a new agent before checking whether the existing agreement can be terminated.

2. Check Who Has Authority

Review the lease, company structure and management agreement. Confirm whether the decision sits with the RMC, RTM company, freeholder or another party.

3. Speak to Other Directors or Leaseholders

Changing an agent affects the whole building. Get the relevant decision-makers involved early and agree what needs to improve.

4. Prepare a Management Brief

Give potential agents the information they need. Include the number of units, facilities, current service charge arrangements, maintenance issues, major works, compliance requirements and the problems you want solved.

5. Compare Proposals Properly

Do not compare management fees alone. Look at the full service, including site visits, communication, financial reporting, contractor management and emergency response.

If you are considering YHPM, you can review its block management service to see how the service is structured.

6. Check the New Agent

Ask about experience, qualifications, professional standards, client references, financial controls and performance reporting.

7. Give Proper Notice

Follow the termination provisions in the existing management agreement. This is one area where getting the timing wrong can create unnecessary costs.

8. Plan the Handover

A professional transition should cover:

• Service charge records
• Client money
• Contractor information
• Insurance details
• Maintenance schedules
• Compliance records
• Resident information
• Keys and access arrangements
• Ongoing projects
• Outstanding repairs

9. Communicate With Residents

Residents should know who the new managing agent is, when the change takes place and who to contact after the handover.

10. Start With Clear Performance Standards

Agree what good management looks like from day one.

This is where measurable targets can make a real difference.

If your building is considering a new managing agent, Your Home Property Management can review your current arrangement and explain what a managed transition could look like. Book a free management review with the team.

When Should You Change Managing Agent?

There is no universal “best month” to change. It may be convenient to coordinate the change with the end of a service charge year, but the contract, financial position and practical circumstances of the building matter more than simply waiting for a particular date.

If the current agent is causing serious problems, waiting months purely for a convenient date may not be the best option. The key is to understand the contract and plan the transition properly.

How Do You Choose a Better Managing Agent?

A cheaper managing agent is not automatically a better managing agent. Ask potential agents questions such as:

• How often will you visit our building?
• Will we have a named property manager?
• How quickly will resident emails be answered?
• How are contractors selected?
• How are service charge budgets prepared?
• How are emergency repairs handled?
• How do you report performance to directors?
• What happens during the transition from our current agent?

These questions reveal much more than a headline management fee.

For example, YHPM highlights a strong on-site presence, dedicated change management, transparent service fees and responsive property management across its service offering.

What Happens After You Appoint a New Agent?

The appointment is not the end of the process. The handover needs to be managed carefully.

The outgoing agent may hold important information about the building, including financial records, contractor arrangements, insurance documents, compliance information, maintenance histories and resident communications. The new agent needs enough information to take control without leaving gaps. A good transition should therefore have a clear handover date and responsibilities on both sides.

If your development is in London, you can also explore YHPM’s dedicated block management services in London. For developments elsewhere, YHPM also provides block management in Kent and block management in Essex.

What If Your Current Agent Says You Cannot Leave?

Do not rely on a verbal answer. Ask the agent to identify the contractual provision they are relying on. Then check the management agreement and, where necessary, take independent legal advice.

There may be a notice period, minimum contract term or other contractual requirement. Equally, there may be a valid termination mechanism that allows the building to move to a new agent. The important thing is to establish the actual contractual position rather than relying on assumptions.

You Are Not Stuck With Poor Management

If your building has reached the point where residents dread calling the managing agent, repairs remain unresolved and nobody can explain where the service charge money is going, it is reasonable to ask whether the current arrangement is still working. But the answer is not always simply “vote them out”.

First establish the legal and contractual structure of your building. If an RMC or RTM company controls the management, changing the agent may be relatively straightforward once the relevant contract and company requirements have been followed.

If the freeholder controls management, your options may be different. And if the building qualifies for Right to Manage, leaseholders may have a route to take control without having to prove bad management.

The key is understanding who controls the management today and what route gives leaseholders the control they want tomorrow.

The Bottom Line

Yes, changing your managing agent is possible in many leasehold buildings. The difficult part is understanding who has the authority to make the change. If your building has an RMC or RTM company, you may have much more control than you realise. If the freeholder controls management, the route may be different, and Right to Manage could be worth investigating if your building qualifies.

The important thing is not to accept poor property management simply because “that’s how the block has always been managed”. Check the structure. Read the contract. Understand your rights. Get the appropriate decision-makers involved. Then compare managing agents based on the service they will actually provide, rather than simply the lowest fee.

A good managing agent should make the building easier to run, not harder.

Your Home Property Management provides block management across London, Kent and Essex, with dedicated change managers, regular property inspections, transparent reporting and a strong focus on responsive customer service.

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