An Introduction
HWPL was established in 1998 by John Pritchard (who is a Chartered Housing Manager and a Fellow of the Institute of Residential Property Management) and Stuart Halfhide (who also has his own engineering business), initially to manage the portfolio of flats owned by one client who wished to engage a professional management firm to administer his leasehold properties.
From these origins, the company has grown and now has a range of developments under management in London, the Home Counties and the West Country, including sheltered leasehold schemes for retired people and luxury apartments.
HWPL is a Member of the Association of Residential Managing Agents (ARMA) and the Company carries comprehensive professional indemnity insurance. The Company manages its developments in accordance with Codes of Conduct of the Royal Institution of Chartered Surveyors, the Chartered Institute of Housing and for the management of Leasehold Sheltered Housing.
Scope of Services Offered
Based in Chelmsford, the Company is well placed to manage sites in the south of England, London, East Anglia and the East Midlands and undertakes regular site visits to its developments. This is crucial in maintaining proper support for any on-site staff and for identifying management issues that need to be tackled before they become problematic. Approved local contractors engaged by HWPL are continually around our developments, cutting down on travelling time and improving response times.
Management of On-Site Staff
HWPL is experienced in the administration of PAYE, National Insurance and the rights and duties of Freeholders and management companies. Included in our service is the administration of payroll (if applicable) for the management company or Freeholder’s staff (house managers, caretakers and cleaners etc.) including employers’ annual returns, calculation of income tax payments and associated documentation (pay-slips, P45’s, P60’s etc.) As this is one of the main duties of Freeholders and management companies and one which causes most immediate disruption to the smooth running of a development if it is not handled correctly, it is vital that experienced people handle this work. Staff at HWPL have experience of employment law issues and have dealt with disciplinary and other contractual matters for clients.
Management of Contractors
Ensuring appropriate contractors are selected for the various works that are needed for a development is vital for it to be run efficiently. HWPL has a substantial pool of approved contractors. These range from window cleaners and grounds maintenance firms to fencers, electricians and building tradesmen, lift companies, security firms, fire safety specialists, intercom and television aerial firms. We also deal with the lighting and heating of communal areas in developments for our clients.
Management of Health and Safety Requirements
Health and safety legislation has increased in recent years and is an increasingly important aspect of the service we provide. Management of periodic portable appliance testing, electrical certification and risk assessment for fire requirements (including Petroleum Licensing and Fire Certification) all form part of our service, as does the Control of Substances Hazardous to Health (COSHH). When it is necessary to undertake major works we arrange for the engagement of a Planning Supervisor as required by the Construction & Management Regulations 1994 (CONDAM).
Accounting
HWPL uses state of the art accounting software to manage its accounts. Consequently, information is readily available for the preparation of periodic management accounts for each development. These set out service charge receipts, expenditure and the bank reconciliation for the service charge account. The management accounts are used for preparation of each development’s annual budget. This is done in conjunction with the Freeholder, the Residents Association or the Directors of the Management Company and the service charge demands are then issued. Once the demands have been issued, debt recovery is taken in accordance with instructions from the client and the lease terms. Shortly after the end of each development’s financial year we prepare an extended trial balance and draft account for review by the independent auditors of the service charge account.
Assessment of Reserve Requirements
Our normal practice is to assess the long term funding requirements for each development and to add to the reserve each year an amount calculated by assessing the projected costs of cyclical major works. This assessment is carried out as part of the budgeting process that we undertake in conjunction with our clients.
Financial Control
Service charge funds are held in separate accounts. We establish three separate accounts for each of our clients – the service charge client account, the reserve client account and the ground rent account. Designated Directors of HWPL are the only authorised signatories of all bank accounts.
Debt Collection
Where necessary, debtor control is carried out internally by issue of reminder letters and statements of account. In those cases where proceedings need to be issued with a view to Court proceedings an additional fee is charged. In the event that proceedings are taken then an Order for costs would be sought against the individual defaulting lessee. Such action is found necessary only in a very small minority of protracted cases when Solicitors are instructed. Our staff do however offer confidential debt management advice to lessees who encounter financial difficulties.
Client Accounting
Client accounts are maintained in bank accounts totally separate from HWPL’s own bank account. Client account bank statements are produced for the independent external auditors and can of course also be submitted at meetings with our clients.
Additional Services Available:
Company Secretarial Duties
Company Secretarial duties are an additional service offered by HWPL. Appropriately qualified staff deal with this work so as to provide a stream-lined service in transferring shares on the sale of a property. HWPL can also undertake the company secretarial work of the lessees’ management company. This comprises attendance at Board Meetings and AGM’s/EGM’s, keeping the minutes of Board and other meetings, issuing AGM/EGM notices, updating the Company’s Share Register and maintaining the registered office for the Company at our office address.
Solicitors Enquiries
We deal with the enquiries raised by the parties’ solicitors when flats change hands in the developments we manage. We establish a comprehensive information pack for each development which contains all the information required for the sale to proceed. These are updated regularly. A charge is made for this service which is payable by the parties requesting the information. We have found from experience that this is the most efficient way of dealing with such enquiries and most Solicitors find the information we provide extremely useful. We are often complimented by Solicitors for the speed with which we deal with such enquiries.
Management of Major Works
Among the largest items of expenditure likely to be undertaken at a development are external redecoration, renewal of flat roof coverings and lift refurbishment. Clearly, it is important that such works are specified correctly from the start and are subject to competitive quotation, that all relevant legal notices are served promptly and that the project is then supervised, snagged and certificated in a professional manner. Our staff have expertise in these processes and in the management of large projects. Major works are normally undertaken under JCT standard form contracts.
When we oversee major works projects an additional management fee is payable to take account of the costs in preparing documentation, inspecting and supervising work and in following the project though to a satisfactory conclusion. Fees for this type of work are properly discussed and agreed with our clients in advance of the work being commenced as is the exact scope of the work we intend to undertake for the fee involved.
New Developments
HWPL can also provide assistance at the design stage of new building projects. This service includes advice on service charges calculation, building maintenance services, staffing arrangements, advice on mechanical and electrical plant and security as well as health and safety issues. We can also offer expert advice in preparation of draft leases aimed at efficient management of the development once it is occupied.
Ground Rent Collection
In addition to service charge collection and administration HWPL also collects and accounts for the ground rent for clients. We are equipped to hold leases and undertake all other work associated with the administration of the freehold of developments we manage.
Pricing
HWPL management fees are charged on the basis of a set fee per apartment plus VAT. Any increases are always negotiated with the client in advance of the increase being applied. The total management fee calculated is then charged to lessees of the particular development in accordance with the relevant provisions of the leases.