Ground Rents: Learn More about the Process
Ground Rent owners need to ensure that their relationship with lessees is cordial and one of mutual respect. In this article I will comment on my experiences of ground rent ownership and management, and seek to provide insight for aspiring ground rent owners.
It is requisite that management and ownership of ground rents be separated. When vendors sell ground rents, especially developers of apartment schemes, they must ensure their good reputation is maintained. As such ground rent owners should appoint professional managing agents in the town that the development is located. There are companies such as Simarc who have developed a foothold in the industry over the course of many years.
Insurance should always be administered at cost, and be with a ‘household name insurer’. Ground rent payees have a right to professional administration of any insurance claims, and as such reputable companies are a requisite.
An ‘emergency call out’ service is required, as difficult to predict management issues often require rapid responses which can not until the next day. This also adds credence to the requisite stated above for local managing agents.
Membership of professional bodies adds credibility to management companies. Leading organisations include the Association of Residential Managing Agents, and the Royal Institute of Chartered Surveyors. This bodies have thorough complaint procedures, so aggrieved leaseholders are afforded redress should there be a dispute. This is normally done through an independent arbitration service.
The use of the internet can aid management greatly. As well as simplifying payment and invoicing, it can provide a forum for residents to discuss their concerns in a secure, password protected environment. This can be provided for very little cost by the ground rent owner.
