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To be effective, a residents’ association should be formally recognised.
Who Can Become a Member of a Residents’ Association?
In general terms to become a member of a residents’ association you must be contributing to a service charge, which is a sum in addition to the rent and payable directly or indirectly for services, repairs, maintenance, improvement or insurance and the whole or part of which varies according to the relevant cost.
This should be contrasted with leaseholders who pay a fixed or non-variable service charge: in such a situation, whilst the leaseholder would be entitled to membership of the association, he/she would not be entitled to vote. The position is the same with sub-tenants.
Landlords are not permitted to become member, nor are management companies.
Why form a Residents’ Association?
Residents’ associations are usually formed with a view to represent the members to an ‘independent’ landlord. In addition, a recognised residents’ association may also request certain types of information from a landlord, such as summary of costs etc.
Further, a landlord is also required to consult a recognised residents’
associations on matters such as service charges and management.
In particular, a recognised residents’ association can require the landlord to consult with them concerning the appointment of managing agents.
The Role and Advantages of a Residents’ Association:
A residents’ association offers leaseholders a chance to maximum the benefits of rights conferred to them under their leases.
In addition, should conflicts arise between residents and the landlord or their agents, by forming an Association, residents are in a far stronger position in that they can rely on the support of others leaseholders with similar interests in the association.
In other words, the strength of a well-supported Residents’ Association lies in its capacity for collective action.
For further information regarding this article, contact Roger Hardwick, Head of Leasehold Enfranchisement, Brethertons Solicitors.