Advice on setting up a Property Management Company

[Jonathan Hulatt]

I have recently become the joint freeholder of a block of 4 flats. The previous freeholder had been missing since 1989 and there was nothing in place to collect a service charge and to generally maintain the property. It has taken more than a year but we have now taken control of the freehold and now want to set up a management company to allow us to collect a service charge to pay for building insurance and to maintain the property.

 

Can anyone advise on the setup of a management company for freeholders? I assume we just need to set up a limited company with the two of us as directors but as it wont be a company earning any money, just collecting money to pay the bills, is there a special way of setup in terms of HMRC? Also, any special business bank account required in this respect.

 

Any advice welcome.

 

Thanks,

Jon.

[Kai Choud]

Hi Jon,

 

Based on your situation you can can set up a limited company with the other director. The business account is standard I do them all the time. Just a limited business account. 

[Lee Yang]

Hi Jon,

You can register a limited company at Companies House but as it has no income the company will be dormant (service charge is not classed as income). 

 

We are a Property Management company that could assist you with all this, as well as managing the day to day operations of the block, such as collection of service charge money, gardening, cleaning, insurances etc.

If you would like any help, please ask.