Are tenants entitled to attend Management Company meetings?

Hello Sheila,

IMO, no, it doesn't entitle the tenant to attend meetings. The service charge payment arrangement the tenant has with their landlord is their own affair.

Similarly, if the tenant doesn't pay the service charge, you have no recourse against them, you would need to pursue their landlord for it- the leaseholder.

However, depending on your management articles, the tenant could attend by proxy, if they have been given (written) permission by their landlord.

Reply to the comment left by "HB Welcome" at "29/08/2013 - 07:32":

Thank you, your reply confirms what I believe but I wanted confirmation as we haven't been in this position before.  The flat was advertised as having a  management fee payable by the tenant.  I  have been told that this is not good practice  and that this charge should be paid by the landlord.  The owner of the flat in question has had a long void period as his rental charge plus management fee puts him far above  what other flats on the development are achieving! Thanks for replying sheila

Thank you, this is what I thought just wanted confirmation.  However we wouldn't be happy about a tenant attending a management meeting but I assume from what you say we couldn't refuse if he had written consent from his landlord.

Hi Sheila

the way to exclude him/her is to call all meetings "Directors Meetings" ; in that way only properly appointed Directors who are registered as such at Companies House can attend. Any Ordinary Meeting or AGM of the Company should, generally, only be attended by Shareholders (i.e. flat owners), but any other person can attend if their Landlord has given them a Proxy Vote

Interesting, why don't you want the tenant to attend? I have a flat which is let and there is a lot of animosity with the management company about "renters". I don't think the tenant has any "right" to come as the charge is simply additional rent. If it isn't then that might not be the case (perhaps you should ask). However the tenant is resident and might have some useful input. If they're not interested then they won't turn up.

If we had an owner's tenant in this position who was asking to attend the meeting we'd take the line that the management charge is payable by the owner whether the flat is let or not and that the owner is the person who is entitled to attend. All owners with tenants can be regarded as recovering the management charge through the rent and it is irrelevant that the tenant has agreed with the owner to pay it separately. We would welcome tenants' views on matters regarding the block but they should present them through the owners.

Of course, at that point the tenant may decide to stop paying the charge if they are paying it directly to the company. In that case we would pursue the owner for it.

That raises the question of whether to refuse to accept payments from tenants and insist that the owner pays the charge. Hmm...

the tenant dont seem too bright if he is paying '...far above what other flats on the development are achieving!' you run the risk of an idiot disrupting the meeting.

"The feeling is that a tenant will not have an interest in the development as a whole"

I don't understand your fears, the tenant will be outvoted anyway. If they aren't happy with the decisions you make, they have no legal recourse as you have no contract with them. They would have to persuade their landlord (the leaseholder) to do so.

As puzzler mentioned, they might have useful input, more than their landlord has by the sound of it. From your personal point of view, they may even be an ally, helping curb any excessive plans of the owner occupiers.  Installing marble hallways and crystal chandeliers can seriously damage your rental profit.

"or in establishing a sinking fund"

That depends on what is written in the leases. If it isn't in there and you are only setting up a sink fund by mutual agreement, then the non-contributing leaseholders simply get banged with a big bill when it is needed.

"the owner is the person who is entitled to attend."

What about if the tenant is given a proxy vote?

Reply to the comment left by "HB Welcome" at "30/08/2013 - 09:24":

The tenant won't have a vote as they are not the shareholder although if given a proxy there is nothing you can do about it as you can appoint anyone as proxy.