The appointment of the new management company is democratically determined by a members Selection Committee. The invitation to join this committee is open to all members of the RTM company although we only advise participation by those capable of reviewing detailed information and willing to attend all meetings. There is no limit on committee size although it will typically comprise your founding directors and an equal number of members.
First Meeting of the Selection Committee
The first meeting of the Selection Committee takes place shortly after Determination Date. The principal objective of this meeting is to determine a checklist of priorities and arrive at a shortlist of three potential management companies that will be invited to tender for the management contract. Very often leaseholders have recommendations from other estates that are well-managed or they may have made contact with local property management companies or found potential candidates on the internet. If requested the RTMF can supply lists of management companies with RTM experience. The selection committee will also be asked to review a draft schedule of services and a management questionnaire, which will form the basis of the tender documentation.
RTMF Guidance
The RTMF does not recommend specific management companies. We have no pre-existing agreements with management companies and we do not receive commission from management companies. We do provide impartial guidance and on occasions we may advise against management companies that are financially unsound or have a poor track record and previously proved unsatisfactory.
Management Company Qualification
We would usually advise against the appointment of a management company that is neither a member of the ARHM (The Association of Retirement Housing Managers) nor ARMA (The Association of Residential Managing Agents). ARHM members are bound by a code of practice approved by the Secretary of State for the management of retirement housing and ARMA members operate to a similar residential management code produced by the Royal Institute of Chartered Surveyors (RICS).
Invitations to tender
Following the first selection committee meeting the RTMF collates all the appropriate information into one package, which is then sent to each of the shortlisted management companies in the form of an invitation to tender for the management contract. This information will typically include a questionaire, a copy of your property lease, a copy of your current service charge budget and a draft contract for approval. Each company will be asked to submit their own draft budget using the same format for easy comparison.
Second meeting of Selection Committee
The second meeting of the selection committee takes place following the receipt of information and tenders from each of the shortlisted companies. The purpose of this meeting is to eliminate one of the companies. The remaining two companies are then invited to give presentations to all resident leaseholders. Elimination is determined by a show of hands and simple majority of the committee.
Management Company Presentations
The management company presentations and the final selection usually take place within the same week. Typically the two chosen management companies will give presentations at convenient times between Monday and Wednesday. Although the presentations are technically being arranged by the RTM Company for its members it is usual practice to invite all residents in the hope that those that are not already members may be encouraged to join and take a full part in subsequent meetings. The management company presentations are usually followed by a question and answer session so that everyone has the opportunity to participate.
Final meeting of Selection Committee
The final meeting of the selection committee usually takes place on a Friday morning following the management company presentations earlier in the same week. The purpose of the meeting is for the committee to arrive at its recommendation for the management appointment. To assist in the decision process the RTMF uses a simple scoring system based on the priority checklist agreed by the committee at its first meeting. This is only used as a guide and is always followed by further debate before voting takes place. The final committee recommendation is determined by a show of hands and simple majority. It should be noted that this is only a recommendation and still requires ratification by members in general meeting, usually on the Friday afternoon.
Extraordinary General Meeting
The primary business of the EGM is for members to vote whether or not they accept the management recommendation of the Selection Committee. Voting is preceded by debate and members have full opportunity to question the Selection Committee about its findings. The recommendation is then put to members in the form of a motion and voting is by simple majority. If the motion is approved the directors are empowered to enter into a formal management agreement with the proposed company.
Note: In the unlikely event that members vote against the recommendation the chair will usually ask the meeting to vote on the appointment of the second management company. In the very unlikely event this is unsuccessful the EGM would be adjourned and the Selection Committee would have to reconvene to reconsider its recommendations.