Poor consultation can have costly consequences for the freeholder (and block management funds). Specialized advice on home management service contracts can help you understand if advice is needed. The law does not require that contractors appointed by tenants or RTAs are not fully related to the tenant or RTA in question, nor that the lessor be notified of a relationship that exists. However, if such a relationship is known or will be known to the owner, it may be a factor that will be taken into account in deciding which contractor he should employ. Tenants should also be aware that entering into a long-term contract is just one of many ways a landlord might try to improve the provision of services and work. For this reason, if a landlord offers a long-term contract, would a tenant be advised to ask what issues they want to address? or how does he think the long-term contract will improve the provision of services/works? Depending on the answer, the same problem may be addressed or better solved by a different method, such as for example. B improving on-the-spot monitoring of service providers. It`s not always the type of contract that`s at fault, sometimes it`s how the owner handles it. A change in the nature of the contract cannot resolve the situation if the owner is still mishanding the new type of contract. Tenants should consider the pros and cons of long-term contracts depending on the circumstances. How long they are, what they are for, how prices will go up and similar questions.
If tenants have any doubts, they must communicate them in writing to a landlord within 30 days of the date of the first of the two notices referred to in section 20. The contract between the Freeholder and the Managing Agent states that the contract “is valid for a period of one year from the date of signature. and then continue until it is denounced by one of the parties with a period of three months. Landlords should consider whether this work costs more than £250 for a contributing tenant. Thus, in a property with unequal service contributions, the landlord must consult all tenants if one of them were to pay more than £250. If no consultation is carried out, the landlord may not be able to cover the cost of £250 per tenant. A qualifying long-term contract is a contract concluded by the lessor with an independent organisation or a contractor for a period of more than 12 months from 31 October 2003. (The law does not apply to agreements made previously.) The minimum duration of the appointment is decisive. In other words, it is an agreement with a duration of more than twelve months. In a property where not all tenants pay the same service fee, landlords should consult all tenants if the amount a tenant has to pay is more than £100 in one year.
This figure should be calculated on the basis of the tenant`s total contribution resulting from the agreement, including VAT (and any related administrative or administrative costs resulting specifically from the proposed agreement). If the long-term agreement contains provisions for carrying out work on the property (e.g. B a collective agreement for general maintenance) and that such work entails a fee of more than £250 for each tenant, a separate consultation must be carried out in accordance with the provisions of Annex 3. The initial consultation provided for in Annex 1 concerning the Agreement itself does not provide for a derogation from the consultation for the work. We are required to provide legal advice when we carry out work called “qualifying work” costing more than £250 for a tenant, this is called a Section 20 consultation. Detailed rules have been established in accordance with section 20 of the Landlord and Tenant Act 1985 (as amended by S151 of the Commonhold and Leasehold Reform Act 2002), which set out the precise procedures to be followed by owners. These are the Consultation Requirements (England) Regulations 2003 (“die Regulations”). . .