Case Studies

The Moorings, Edgbaston

The Moorings is an attractive development of 98 apartments built in 1992 situated by the reservoir in Edgbaston, a very pleasant suburb of Birmingham. This development was poorly managed until 2010 by Managing Agents appointed by the Freeholder.  In 2009 the leaseholders formed a Right to Manage Company (RTM) and interviewed a number of Managing Agents to take over the management when the RTM became effective.

Mainstay tendered for the role, along with other leading agents and we were delighted to be appointed.

Our Approach

The development had not been proactively managed and was in poor condition.  External decorations and repairs were overdue and urgently required.  Mainstay helped the RTM Company Directors with the service of required consultation notices and worked closely with them to ensure a smooth handover process.  Mainstay attended a meeting with the leaseholders prior to assuming the management where the role of the RTM Company was explained to all residents.  At this meeting Mainstay’s approach to arrears collection and service charge payments was also explained.

In full consultation with the Directors, Mainstay set the new budget for the development.  There was an immediate reduction in the annual service charges by utilising Mainstay’s national buying power and strict sub contractor terms and service level agreements.

Mainstay then undertook the Section 20 consultation process and tendered for the external decorations.  This was confirmed in early 2011 and a supplementary demand to cover the works was issued in May 2011.  Following stringent credit control action with the full support of the directors, sufficient funds were raised by July 2011 to award the contract and works commenced in September 2011.

Mainstay carries out regular site inspections which are always accompanied by the Directors of our client company.  A review of all actions is undertaken at these meetings, including a full financial review.  The property manager works very closely with the Directors to ensure that agreed goals and targets are achieved.

Credit Control

Mainstay’s credit control department has ensured throughout that arrears are kept to a minimum; an essential part of ensuring that agreed management targets were met.  Annual expenditure has been kept below budget during our management and reserve fund contributions have been increased to a realistic level. 

Substantial savings have been achieved in areas such as insurance premiums, utility costs and general maintenance costs. External decorations were completed to a high standard and internal decorations have also now been completed with costs being met out of current income. The 2012 budget remains below the level paid by leaseholders in 2009. 

All Health & Safety reports are now up to date and all systems are regularly maintained. 

Mainstay has a high profile onsite and attends regular leaseholder meetings, where key decisions are taken in consultation with the Directors and are regularly reviewed.  Importantly, the Directors are kept fully up to date on the financial position and are very supportive of Mainstay’s credit control process.

Sustainability

The development is now on a sound financial footing with adequate contributions being made to reserve funds.  Maintenance is up to date and we continue to enjoy a good relationship with our client and the leaseholders.

Outcome

The appearance of the development has been substantially improved and all maintenance has been and continues to be undertaken promptly.  This has lead directly to a marked improvement in rental yields at the development as well as creating an enjoyable living environment.  The Moorings is now regarded as an attractive and desirable place to live.