How do you change property management companies in London in 2025?
Changing property management companies in London is possible once leaseholders understand their legal rights and the structure of their lease agreement. Whether the issue is poor service, lack of financial transparency or unresolved maintenance, switching managing agents can be an effective solution. The steps involve reviewing the lease, identifying if there has been a contractual breach, issuing formal notice and completing the handover. With proper planning and knowledge, the process improves building upkeep, budget control and leaseholder satisfaction.
What We Have Covered In This Article?
- How do you change property management companies in London in 2025?
- What are the main reasons leaseholders want to change their property management company?
- Why does lease structure matter when changing property management companies?
- What counts as breach of contract with a property manager?
- How to give notice to terminate a property management agreement
- Confirming termination and informing leaseholders
- Coordinating the property management handover
- How to choose a reliable new property management company
- Set expectations early
- How to monitor performance after switching agents
- Frequently asked questions
What are the main reasons leaseholders want to change their property management company?
Most leaseholders choose to change their managing agents in London due to ongoing service failures. These include delayed communication, errors in service charge accounts, neglected repairs and unsatisfactory responses to complaints. Leaseholders who contribute financially through service charges expect accountability, professional conduct and reliable reporting.
Common warning signs
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Poor or inconsistent communication
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Incomplete or incorrect financial statements
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Unexplained charges on the service charge demand
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Failure to carry out basic maintenance or respond to safety concerns
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Lack of transparency around decisions
Leaseholders often share these concerns across forums and property discussion groups, showing the scale of the issue across the London property sector.
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Why does lease structure matter when changing property management companies?
The process of changing your managing agent depends heavily on your lease type. This defines who has authority and what steps are legally required.
Tri party lease
A tri party lease includes three parties: the freeholder, the management company and the leaseholder. The management company usually holds the legal contract with the managing agent. Many leaseholders become automatic members of the management company. In some cases, they can apply to become directors, which gives them decision making powers.
If you are a director, you can raise a proposal to re tender the contract and invite new agents to bid. If you are not a director, you can still make a formal request to the board to consider new options. Director details can be found through Companies House.
Two party lease
With a two party lease, the agreement is between the leaseholder and the freeholder. This arrangement gives the freeholder control over the appointment of the managing agent. Leaseholders in this position have four possible routes:
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Ask the freeholder to change the agent
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Start a Right to Manage (RTM) process if two thirds of leaseholders agree
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Apply to the First Tier Tribunal for a new manager based on evidence of mismanagement
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Purchase the freehold collectively and appoint a new agent
These routes involve legal processes and may require specialist advice. If the freeholder is uncooperative, RTM or tribunal applications are the most common solutions.
Tri party lease with named agent
In some leases, a specific property management company is named. These usually include clauses on how to end or transfer the arrangement. Leaseholders may form a Residents Management Company (RMC) which gives them legal control. Once formed, shareholders in the RMC can vote to replace the managing agent.
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What counts as breach of contract with a property manager?
Review the management agreement to check for conditions that permit termination. Some contracts allow ending the agreement without cause, while others require proof of breach.
Examples of breach include:
Failure to follow reasonable instructions from leaseholders
Financial malpractice such as overcharging or unauthorised expenses
Withholding deposits or retained funds
Not providing timely reports or access to documents
Consistent delays or failure to complete contracted services
Gather evidence including emails, meeting minutes, resident complaints and photos to support your case.
How to give notice to terminate a property management agreement
Once you have a valid reason and understand the lease terms, prepare to serve notice. The management agreement will include a required notice period, which is commonly between thirty and ninety days.
The notice should be formal and in writing. Include the contract end date, reason for termination and the name of the new managing agent if known. Post the notice using recorded delivery and retain a copy for your records. Email alone is not usually sufficient.
Inform the current agent that they are expected to coordinate with the new agent for the transition. This includes preparing documentation and transferring financial data.
Confirming termination and informing leaseholders
After your notice is accepted, the managing agent should provide written confirmation. This should include the final date of their involvement and the agreed handover arrangements. You must also write to all leaseholders who contribute to service charges, confirming the change.
This is a good opportunity to reassure residents, explain the reasons behind the change and introduce the incoming company.
Coordinating the property management handover
A proper handover includes the transfer of maintenance schedules, supplier contracts, insurance policies, service charge accounts, tenant information and physical access items such as keys and fobs.
Financial records and service charge funds
The outgoing agent must transfer any unspent service charge funds along with an up to date statement of account. This should show all income and expenditure for the period they managed the building. Ensure the new agent checks the figures for accuracy.
Request copies of key documents such as invoices, building risk assessments and any outstanding works orders. Missing information can lead to delays or gaps in service.
How to choose a reliable new property management company
The new company should meet compliance standards, understand leasehold property law and have experience managing similar buildings. Look for professional membership with ARMA, IRPM or RICS. These bodies set quality standards for managing agents.
Questions to ask a new managing agent
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Do you have experience with Right to Manage buildings?
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Can we speak to existing clients for references?
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What is your process for reporting repairs?
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How often will you provide financial statements?
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Who will be our day to day contact?
Companies like Uniq Block Management and Scanlans are often mentioned in industry reviews for their clear reporting and customer support.
You can read more about Right to Manage and service charge disputes through government and leaseholder support sites.
Set expectations early
Once you appoint a new agent, review and agree the terms of the management agreement. This includes:
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The services they are responsible for
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Timelines for reporting and maintenance
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Complaint handling process
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Service charge budget planning
Clear expectations prevent confusion and help the relationship work long term.
How to monitor performance after switching agents
Keep a record of issues that arise, including how quickly they are resolved. Ask residents for feedback and compare this to past experiences. You can arrange annual reviews or meetings with your new agent to check progress.
If the new agent fails to meet standards, raise the issue early. Consistent underperformance could require another review or, in extreme cases, another change of agent.
Frequently asked questions
How long does the process of switching agents take? This usually takes between thirty and ninety days depending on your contract notice period.
Can the managing agent be changed during an ongoing tenancy? Yes. The tenancy agreement remains valid. Only the party managing the property changes.
What if the current agent refuses to hand over documents or funds? You may need to seek legal advice or apply to the First Tier Tribunal to enforce compliance.
Are there exit fees involved when changing property managers? Check your agreement. Some agents include exit clauses with administrative fees. Clarify these before giving notice.
Do tenants need to be consulted when switching managing agents? No. The responsibility for managing the building lies with the leaseholders or directors of the RMC. Tenants must be informed, but not consulted.
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