At Centrick, we work closely with Resident Management Company (RMC) directors, whether they’re responsible for a large apartment block or an estate. Whether you’re newly appointed or have years of experience, the same questions tend to come up again and again.
Below are the questions we hear most often, drawn from real conversations, training sessions and onboarding meetings, along with our answers.
What’s the difference between a managing agent and a management company?
A management company is the legal entity responsible for managing the development. A managing agent is the professional firm the management company hires to carry out that management on its behalf.
The management company is registered at Companies House and referenced in your lease or transfer document. It’s typically made up of leaseholders acting as members and directors, who then choose to employ an agent such as Centrick to deliver services and day-to-day management. Where no management company exists, the managing agent is instructed directly by the landlord or freeholder of the common areas.
Do we need to sign a new management agreement every year?
No. Once your initial agreement is in place, most RMCs operate under a rolling agreement that continues automatically unless notice is given.
It’s still worth reviewing periodically whether the agreement remains fit for purpose, especially if your development’s needs have changed or new legislation has come into force.
How should our service charge money be held, is it protected?
Yes. Service charges (often referred to as client money) must be held in a trust account and used only for the development they were collected for.
The agent or landlord is required to hold funds this way to ensure full protection. We’d also recommend individual trust accounts for each development in management, rather than a single pooled client account, where security could be compromised.
How does Centrick know which areas are maintained using the estate charge?
We work from a set of plans and documents that define the areas under management responsibility and the maintenance regime that applies to them.
These typically include landscaping plans, drainage plans, engineering plans, conveyance plans, and Landscape and Ecology Maintenance Plans (LEMP). You can find your master conveyancing plan on the MyCentrick portal, showing areas marked for management responsibility, private homeownership, and adopted areas where applicable. Our grounds maintenance team draws up an annual specification, and our property management team ensures the scheme stays compliant with relevant legislation, insurance and Biodiversity Net Gain requirements.
Do managing agents take commission or add-on fees from contractors?
No. Centrick doesn’t take commission or fees from contractors, and we don’t inflate costs.
This comes up often, and it’s an important trust and transparency issue. Contractors don’t pay us a percentage, decisions are based on competitive quotes, and those quotes are shared openly with the RMC board. That way, choices are made on quality and value, not hidden incentives.
What’s the difference between the “Responsible Person” and the “Principal Accountable Person”?
The Responsible Person is accountable for fire safety under the Fire Safety Order, typically managing day-to-day risks. The Principal Accountable Person (PAP) is a role introduced under the Building Safety Act for higher-risk buildings, with a broader duty to manage building safety risks overall.
This is a common point of confusion, especially in complex ownership structures. Your managing agent should help you understand where responsibility sits and bring in specialists when needed.
Why should we bother with a planned maintenance programme?
Because without one, you’re always on the back foot. Planned maintenance prevents costly emergencies and helps you budget accurately.
It also reduces disputes over unexpected service charge spikes and extends the life of your building’s fabric and systems, from roofing to lighting. At Centrick, we work with RMCs to build practical, tailored plans that align with available funds.
I want to be a director of the RMC but have no experience in managing property, is that a problem?
No, and it’s a common starting point. Centrick supports new directors in understanding the role and its responsibilities from day one.
We act as your trusted advisor for compliance and financial questions as they come up. The Property Institute’s website is also a useful resource for further reading on RMC director roles and responsibilities. The Federation of Private Residents’ Associations (FPRA) also provides resources and information to its members.
What protection is in place for me as a director of an RMC?
Every RMC we manage has Directors and Officers insurance in place, in addition to Centrick’s ongoing guidance.
This cost is included as a line item in your Estate Charge budget, so it’s collected from homeowners as part of the standard charge rather than falling personally on directors.
What happens if none of the homeowners want to be a director of the RMC?
We’d always encourage homeowners to volunteer, since the RMC exists to give them control over their own estate. But if nobody comes forward, the company doesn’t have to dissolve.
Where existing directors need to stand down and no resident is willing to take over, Centrick will temporarily act as a director to keep the company running, until a resident is ready to take on the role.
Still have questions?
If you’re reviewing your management setup, weighing up a new agent, or just want clarity on your responsibilities as a director, Centrick’s team is here to help. No jargon, no pressure, just practical support to help you make informed decisions.
Centrick’s RMC Training is free of charge and open to all RMC Directors. It’s an expert-led session and a good opportunity to network with fellow directors. Visit our Events page for upcoming dates.
