Rose Duryard, Lower Argyll Road
- The building
- Nine flats in an Edwardian building extended twice, with a rendered flat-roofed section on one side and a three-storey part brick, part render section on the other. The grounds include nine garages, a bin store, a tennis court, a car park, a steeply sloping wooded embankment and a basement with damp and standing water.
- What was applied for
- Appointment of a manager under section 24 of the Landlord and Tenant Act 1987, after a section 22 notice.
- The figures
- Nine flats and nine shareholders, four of them directors. Bundle of 983 pages. Appointment 1 April 2025 to 31 March 2028. Professional indemnity cover raised from 1 million to 2 million pounds as a condition.
- Costs
- No section 20C or paragraph 5A application was made. The tribunal said it would not have granted them, the manager having been appointed by agreement.
What Happened
The applicants first proposed one of themselves and directions explained why that would not do. They then nominated an external property manager, who inspected in November 2024. Over the lunch adjournment at the hearing the parties agreed to her appointment, so the contested case was never argued out.
What the Tribunal Held
Appointed on the other circumstances limb of section 24(2), with no findings made against the management company. The tribunal was explicit that there cannot be an order appointing a manager by the consent of the parties, because the manager appointed is answerable in the first instance to the tribunal, and that the tribunal must satisfy itself the proposed manager is suitable. It had concerns that she had not at first grasped the difference between a manager and a managing agent, but held that the same applies to any first-time appointee and that if that were disqualifying almost no appointment would ever be made. It warned the parties that the fees of managers tend to be greater than those of managing agents.
What it means for a block here. Agreement between the parties does not appoint a manager. The tribunal appoints, and it tests the nominee's insurance, experience and understanding of the role first. Budget for a tribunal-appointed manager costing more than a managing agent.