We are not able to work alone and make decisions on behalf of the freeholder or company. The control is retained by the directors and instructions must be obtained before incurring any cost or liability.
Consideration needs to be given to the following:-
What responsibilities and authorities the agent will have
How much service charge money we as your agent can spend without pre-approval
The authorised lines of reporting and communication
Both the individual leaseholders and we as agent should be clear as to from whom instruction is to be received.
We cannot work if expected to receive instructions from all lessees. The usual and most effective arrangement is for us to attend, and report to, meetings of the Board. In between meetings the Board could nominate one of its directors to be the main point of contact. By treating us as a form of general manager, we will provide useful input to policy and take overall responsibility for day-to-day affairs. Meetings should be properly organised and the Board’s instructions to us clearly minuted. The Board should set clear lines of communication, understood and observed by both sides.
Remember that we cannot take instructions from the directors that would put us in breach of any landlord and tenant law, code of practice or other statutory guidance, e.g. health and safety legislation.