The day-to-day administration of our client accounts involves comprehensive systems for the collection of funds, the payment of expenses, and the auditing of those activities. On behalf of our clients we undertake the collection of Ground Rents, Rents, Service Charges, Insurance Premiums, Water Rates and other charges. Wherever possible these funds are collected automatically by Direct Debit as this is the simplest and most cost-effective system available, with the added benefit of minimising costs and administration for residents. However, we also handle receipts via electronic banking, standing orders, cheques and cash.
We make Payments to clients, contractors, suppliers and others for a wide variety of expenses. Wherever possible the payments are made by BACS, the electronic transfer of funds direct to beneficiary’s bank account, which is the most efficient and safe method possible. However if necessary we do forward funds by cheque.
Legal Proceedings are undertaken against non-paying residents only after negotiations and agreements have failed. We carefully balance and protect our clients’ position recognising that their income flow needs to be assured, whilst also trying to be scrupulously fair to residents. Where necessary we undertake Land Registry Searches to enable us to contact anyone with a legal interest in a property and, as a matter of courtesy, keep them fully advised about any action being taken. We also liaise directly with Mortgage Companies, including the repossession departments where appropriate.
Effective Accounting, Auditing and Budgeting are essential. The flow of funds through our client accounts is smoothly and efficiently supervised with constant forward planning and day-to-day reconciliation. We produce One, Five or Ten Year Budgets to ensure that lessees are aware of the future financial requirements for the properties. Current expenditure is monitored and ‘internal audits’ are carried out regularly to compare costs incurred against budgets. Action can be taken quickly to cope with unforeseen events and to ensure that cashflow problems are minimised. To this end we do often recommend establishing reserve funds to deal with cyclical maintenance.
A large number of the blocks of flats within our portfolio have their own residents’ Limited Company. Our administration team deals with many such companies and therefore has a thorough knowledge of the requirements of the Companies Acts and other relevant statutes. Daily they deal with Companies House regarding Annual Accounts, Directorship changes, Annual Returns and Share transfers. They provide a full Company Secretarial service for those clients where this is appropriate and ensure all legal requirements are met.
In addition to these thorough internal procedures, all accounts are audited by external, independent Chartered Accountants.