Consultations, Approvals and Provision of Information
21. The manager should aim to achieve good and effective communication with owners, and if the development has one, the Owners’ Association. Requests for information from owners should be met courteously and within 14 days.
22. To help deal with emergencies, the manager will find it helpful to record personal information about owners. However, any personal information should only be obtained and recorded with the owner’s consent. The recorded information should be available to be examined and, where appropriate, corrected by the individual concerned. All information on owners gathered by the manager will be subject to the statutory requirements of the Data Protection Act 1984.
23. General information to owners may be communicated through circular letters, meetings, newsletters and notice boards. All information, including private correspondence with owners, should be accurate, clear and concise. Managers should be aware that owners with sensory impairments might require a personal visit or information provided in other ways.
24. The manager should consult all owners on major issues of housing and estate management including significant changes in the quality or level of services such as maintenance schedules and wardens’ duties, major works and repairs (except in emergencies), annual budgets and proposed service charges. Any significant changes should normally be agreed by at least a majority of the owners concerned unless the owners are subject to an alternative legally binding arrangement for decision making on such matters.
25. Each owner should be provided with a copy of the accounts for management services, audited by an independent accountant (whose fee will have to be met by the owners through the service charge) within no more than 6 months of the end of each financial year. More detailed financial information should be available to owners on request.
26. Each owner should be provided with a copy of the proposed budget for the next financial period, showing a detailed breakdown of the proposed costs and charges.
27. All budgets and accounts presented to owners by the manager should be in the same format so that direct and easy comparisons can be made.
28. Each year the manager should hold a meeting of all owners to consider the proposed budget and service charges for the following year. The budget should normally be approved by a majority of the owners at that meeting. Where the owners reject the proposed budget and service charges, the manager will present revised proposals for approval within 14 days. A second meeting may be necessary to review the audited annual accounts. A reasonable period of notice of at least 14 days must be given to all owners of both of these meetings. Written copies of the proposed budget and service charges, and, where relevant, the audited accounts, shall be made available to owners by the manager and circulated at least 14 days in advance of each respective meeting.
29. To satisfy prospective purchasers’ enquiries the manager should supply general information about the development and the services provided by the management company with the view of helping existing owners to progress the sale of their house. Specific information about the house for sale should only be divulged with the owners’ consent. A charge may be made to outgoing owners to recover the cost of providing these services.
30. Owners’ Information Packs will normally be passed on from 1 owner to the next. However, this could be made available by the manager though a charge may be made for this.
31. The Owners’ Information Pack should contain, as a minimum, the information set out in Annex 3 to this Code. Developers and managers should endeavour to make a version of the Owners’ Information Pack available in large print for those with eyesight difficulties or on audio cassette.
32. The manager should encourage the formation of an owners’ association, recognise and consult such an association which has a membership representing 51% or more of the dwellings on the development and which has a written constitution and elected officials, and take its views into account. The manager should keep details of the constitution, officials and membership and ask the association to supply details of any changes as they occur. The manager will, however, continue to be responsible for consulting and providing management services to all owners, not just those who are members of the owners’ association.
33. The manager should comply with all of the provisions contained within the Deed of Conditions relating to the development as to the nature and quality of services to be provided to owners and how these services are to be charged for.
34. All services to be provided by the manager should be clearly specified and described in the Owners’ Information Pack, including details of any charges. If these services are changed (see paragraph 24), the Pack should be updated accordingly by the manager.
35. The manager should take appropriate steps to control access into estate buildings so as to establish, as far as possible, a secure environment for residents while ensuring access for emergency services.
36. The manager should recruit and appoint the warden, manage him or her and be responsible for disciplinary matters, including dismissal. The manager should make all necessary checks on the suitability, experience and qualifications of any prospective warden, and provide full and proper training, supervision and support. The manager should also ensure that the role, responsibilities and duties of the warden are clearly defined and known to residents.
37. During the warden’s off duty hours, the manager should ensure alternative arrangements are in place to deal with emergencies. He should also provide alternative arrangements if the warden is absent during his normal working hours.
38. The manager should set out in the Owners’ Information Pack the arrangements for owners to make an input to the manager’s performance appraisal of the warden and other staff. The manager should treat as confidential any comments made by owners, unless otherwise agreed with the owners concerned. Any complaints should be handled in line with the complaints procedure, as set out in paragraph 65.
39. The manager should ensure effective supervision and management of the warden and provide supervisory support services when necessary. The manager should undertake a site visit at least every 8 weeks. The warden should be able to telephone the manager at all other times.
40. The manager should ensure that the warden is following agreed policies, practices and procedures and observing the correct hours of duty.
41. The manager should address within 5 working days any difficulties that the warden cannot resolve, including any particular problems between the warden and owners.
42. The manager should provide the warden with an induction course on appointment and a comprehensive training programme, including recognised training courses where necessary. This will be augmented with regular skills training and updating on new procedures.
43. Individual management codes will detail in the Owners’ Information Pack the specific arrangements in place to ensure compliance with the requirements set out in paragraphs 36 to 42.
44. The manager should ensure the maintenance of an emergency alarm system. Owners will be provided with a full description of the system and its operation in the Owners’ Information Pack.
45. The manager and the warden may hold a master key that gives access to all houses within the development. However, under no circumstances should the manager or their employees enter a house without prior written consent, except in an emergency.
46. The manager should maintain adequate and appropriate insurance cover including professional, employers’ and third party insurance. Details of the cover and its cost shall be provided in the Owners’ Information Pack. In addition, the manager should undertake a periodic review of insurance cover and costs, in consultation with owners.
47. The manager should endeavour at all times to provide a service that is as cost effective as possible.
48. The manager should undertake to organise all necessary repairs and renewals to those parts of the buildings in the development for which he is responsible, as may be specified in the Deed of Conditions and in the Owners’ Information Pack, to ensure they are kept to a good standard of repair and decoration.
49. The manager should draw up and implement a programme of cyclical maintenance for communal areas. The cost will be included in the proposed annual budget. The manager will also provide clear and concise information to owners about repairs procedures. Details should be set out in the Owners’ Information Pack.
50. The manager should consult owners before carrying out all major repairs or improvements, and seek at least 3 tenders wherever practicable, and consult owners on the estimates. In the event of an emergency, the manager will adhere to the consultation process as much as possible in the time available. Otherwise, the manager will inform owners of the reasons for the emergency action, together with details of the cost of the works, as soon as possible thereafter.
51. The manager should give 2 weeks notice to owners of any repairs (other than emergency repairs) or improvements that require access to individual properties.
52. The manager should obtain agreement from the owners to disburse any resources in a sinking fund to meet the cost of repairs and maintenance, using the procedures set out in the Owners’ Information Pack.
53. Where a sinking fund has been established, a full explanation of the fund should be provided in the Owners’ Information Pack. This should include details of how payments are to be made into the fund, the purposes for which the fund can be used and whether any part of it can be refunded to an owner in the event of a sale. Sinking and other surplus funds should be kept in separate interest bearing accounts and the monies held in trust on behalf of owners.
54. The amount to be held in the sinking fund should be agreed between the manager and owners on the basis of an agreed planned maintenance programme.
55. All charges on re-sale, including estate agency services, incurred by the manager should be clearly itemised, and agreed in advance with owners.
56. Arrangements for the sale of a property should be set out in the Owners’ Information Pack. However, the manager should not seek to prevent an owner from employing an alternative agent to undertake the sale of their property.
57. The manager should advise the owner or his or her agent as to whether potential residents resulting from a possible sale meet the eligibility criteria for occupancy set out in the Deed of Conditions.
58. The manager should charge management fees (as defined in Annex 2) that are reasonable, having regard to the services provided. Services covered by the management fee should be listed separately by the manager. The manager should calculate management fees at a cost per dwelling within a development. The fees should be agreed with owners, be based on the services provided, and set out in a written management agreement. Where the owners reject the proposed fee, the manager will prepare a revised fee for consideration within 14 days.
59. Management fees should be separately identified in the annual accounts presented to owners. These accounts should also identify all elements of the service charges.
60. The manager should provide an explanation of how deficits or surpluses over all costs and expenditure covered by service charges will be treated, and how deficits will be recovered from owners and surpluses credited. Arrangements should be set out in the Owners’ Information Pack.
61. Separate accounts should be held for each development. Where services are pooled across developments, the charges levied against owners should be restricted to the cost of the actual work in their development. Charges cannot be increased to meet a deficit in another development.
62. The manager should have systems in place to ensure the regular monitoring of payments due by owners. Action should be taken within 6 weeks to inform owners of amounts outstanding and to agree arrangements for their subsequent collection.
63. If requested by an owner, the manager should be able to give guidance (where possible) on the range of state benefits available and/or indicate where further advice on benefits and debt counselling can be obtained and provide the name and address of agencies concerned.
64. The manager should offer to meet with an owner who is due outstanding charges to explore options for payment before taking legal action. The manager should not take legal action without giving 6 weeks warning which will include a suggestion that the owner seeks advice on the consequences of non-payment.
65. Every owner should receive a copy of an explanatory guide setting out complaint procedures to be followed in the event of a complaint. These should include reasonable target time-scales for responding to complaints and an appeals procedure. The guide should explain how to register and pursue complaints against contractors, wardens (including procedures under paragraph 38) and the manager. Details should be provided in the Owners’ Information Pack.
66. The manager should only use contractors who possess the necessary skills and experience for the services to be provided. Wherever possible, the manager should use contractors who are members of a relevant trade association.
67. With the exception of emergency repair work, all contracted out work with a value of more than a sum specified in the Owners’ Information Pack should be subject to a tendering process, which can be scrutinised by owners. Proper building contracts should be drawn up before any work begins. The associated documentation should be open to inspection by owners on giving reasonable notice.
68. The manager should seek to ensure that contractors are courteous, trustworthy and work in a manner that does not cause undue inconvenience to owners.
69. The manager should declare to owners any association or connection with any contractors before including such contractor on a tender list.
70. Contractors should have adequate public liability insurance.
71. All services and goods purchased through contractors should be properly recorded in the accounts, noting the cost, VAT and any other charges payable. Cash in hand arrangements for work undertaken are not permissible.
72. The manager must adhere to the provisions of all statutory requirements.
73. The manager will ensure there is no discrimination within the management organisation on the grounds of race, colour, nationality, religion, health, ethnic or national origin, sex, marital status, age, sexual orientation or disability.
74. The manager, where involved in staff recruitment and employment, estate management, selection of contractors and agents and access to services, should ensure that procedures operate on a fair basis and that individuals are judged with reference to the criteria of fitness for the job. The manager should also ensure that all employees are issued with a comprehensive contract of employment that clearly defines their conditions of service.
75. The manager should seek to ensure that any warden and all other staff are courteous to owners at all times.