1. Where are the Transcend Offices?

The main Management office is located in Ware, but we are also based in Epping.

The business was formed just 6 months ago. Transcend business model is to be expanding across the Home Counties and into London within 18 months.

2. How many staff in Transcend office are directly involved in Block Management?

We have one member of full-time staff, one member of part-time staff and Partner Consultant whom is an Associate of the Institute of Residential Property Management.

All members of Transcend staff are to sit and pass their examinations to become a Member of the Institute of Residential Property Management within 24 months. All staff will also be required to sit and pass the Associate member of the Royal Institute of Chartered Surveyors examination within 24 months, too.

3. How many blocks do Transcend manage and how many units?

We currently only manage two blocks in Ware, combining to make 170 units. We started managing our first block of 89 units in September 2016. The second, the slightly smaller of the two at 81 units + an estate, we began managing in Summer 2019.

Both Clients jumped at the opportunity to benefit from our advanced systems, innovative methods and sheer will to find a resolution to the issues put in front of us.

4. Can Transcend supply references for blocks they manage?

References can be provided if there is a serious consideration to appoint Transcend. We do not like to trouble people unnecessarily, as Directors of RMC and RTM companies and Officers of Residents Associations do all of this work on a voluntary basis.

5. What are Transcend’s fees?

Transcend’s ‘normal’ residential fee for a residential block is £200.00 per unit per year, plus VAT.

6. What else does Transcend’s charge for, that is not included in the fee?

Transcend work very differently to most managing agents, as the costs applied to works outside of the standard day to day management is not something that we tend to charge extra for*. We do not charge for copies of documents, unless it cost us to get them from a third party.

7. Are there any other charges that Transcend pass on to Transcend managed blocks, for example audit fees or call out fees?

For the purpose of clarity, the fee paid to Transcend covers:

• Preparing annual spending Budgets and circulating these for comment four weeks before the first Service Charge collection of the next financial year
• Calculating the Service Charge due from each lessee and issuing applications prior to the due date
• Ensuring Service Charges and, where applicable, Ground Rents are collected from all residents when due, with additional charges to lessees who pay late
• Ensuring the insurance policies required under the leases are in place; handling insurance claims and getting better insurance policies for buildings cover is not charged as extra, and we have no interest in charging commissions from insurance renewals back to the development. If any savings are made this is passed on back to the development, for the leaseholders to decide what they want to do with it.
• Engaging directly employed staff where applicable; no charges are made for this, with all relevant costs in employing staff being charged back to the leaseholder account. Transcend charge nothing on top, when engaging for staff, or paying staff.
• Entering into and administering maintenance or service contracts; tenders are taken out, with a minimum of three tenders agreed, and the best price agreed, whilst ensuring the levels of service are not diminished at all.
• Instructing our approved Contractors to carry out minor repairs
• Attending up to three Quarterly Development Meetings per year and also attending the AGM.
• Circulating ‘MailChimp’ circulars as required giving updates on current issues relating to the building
• Routine enquiries from lessees: we aim to respond to all telephone calls and e-mails within 48 hours, and to all letters within seven days.
• Maintaining a register of leasehold and financial interests, and a register of sub-lettings
• Monitoring compliance with lease obligations on the part of Landlord and Lessees
• Advising on management policy
• Maintaining accounting records and administering the bank accounts

8. Can Transcend provide evidence that they offer a quality service at a fair cost?

Yes, we can.

Working with the leaseholders of Stewart Place and Lady Margaret Gardens, and asking them what their issues where and drawing up a plan of action together with agreed timelines, we have turned the development around together.

It has been a long road and a hard struggle, but the developments are most certainly seeing the benefit from Transcend and its involvement on what needed to be improved and how it was going to be done.

Necessary also for the quality of service to be there, has been listening to everyone’s views,though, it is impossible to please everyone. Justifying why we do what we do and the benefits that are going to be felt by the leaseholders of our developments is always necessary also. The same transition of information will be placed on future developments under the management of Transcend.

Whilst Transcend as a business has only been in this industry a short time, we have found that Management Companies and Landlords seem to treat the reserves funds of developments as an account within which to save funds with no purpose for the same. A viable reserve fund is as important a selling tool as a nicely kept development within a well-established area. Prospective buyers of flats will ask ‘How much is in the development fund’? Smaller funds make people question whether the money is being handled sensibly. A general rule of thumb in property management is that 5% of all management charges should be put aside into a reserve fund. This would ensure that the development is improving, being well maintained and also having funds set aside for the future.

It is recognised that good communications with lessees is a key part of successful management. An e-mail group is set up so that residents can be kept informed on issues relating to the building.

9. How comprehensive a panel of approved contractors does Transcend have?

The company has an established panel of contractors for routine minor works. For small work items, we do not obtain competitive quotations but instruct an approved contractor.

We work closely with a family run company GMS (Global Maintenance Solutions), who undertake works on all areas of the current development we are running.

10. Do Transcend have employees who provide services to Transcend managed properties, for example cleaning?

We do not. Whilst it always likely that an employee may have an entirely separate business of their own, they are not permitted to carry out paid work for Transcend and their Clients, other than that they are directly employed to undertake.

11. Do Transcend charge a fee for contractor selection and/or a percentage of those contractors’ charges?

There is no charge for the use of Transcend approved contractors. All invoices, costs and charges are fully available on request and at no charge to the leaseholders.

No charge is made in any form in relation to appointment/selection of cleaners, gardeners, lift contractors etc. Neither is any ‘commission’ asked for or taken from contractors.

12. What selection criteria do Transcend use for contractors on Transcend panels?

Examples of previous work by way of photographs
Recommendation by Landlord, Residents’ Association (RA), Residents’ Management Company
(RMC) or Right to Manage Company (RTM)
References where no previous experience of that contractor
Financial reference checks if a major contract is involved

13. How do Transcend show that they are able to provide competitive insurance quotes?

If you have appointed an insurance broker, Transcend will ask your broker to obtain competitive quotations. We currently use a company called Robert Gerrard who have succeeded on saving insurance premiums on the most recent building policy at our larger development by 49%. A saving that is given directly back to the Leaseholders.

14. What IT systems do Transcend have?

Transcend use a back-office system called Blockman, a dedicated cloud-based Property Management software with built in 256-bit encryption, built specifically for Block Management. Blockman can produce all kinds of financial information, from income & expenditure schedules, to balance sheets, budget vs actual statements and the usual debtor and creditor details. All of these documents are available to Leaseholders on request.

Furthermore, Transcend are in the midst of developing a dedicated app, which will allow you to access all of your development’s information from your smartphone. You will have accessto, in downloadable format, your live interim service charge statements and applications for payment, building’s insurance documentation, the Transcend Resident’s Handbook (which we will produce and issue on taking over the management of your development), year-end service charge accounts and will also be able to report and track any repair or maintenance issues.

Our IT systems are our USP; we aim to be the most advanced and technically proficient Property Management company in the industry, whilst still being able to provide an approachable ‘real person’ service to those that do not wish to use the systems on offer.

15. Is Transcend registered under the Data Protection Act?

Yes.

16. Where and how do Transcend keep service charge monies?

A dedicated bank account is opened with Lloyds TSB solely for general service charges; this is a cheque account but also pays interest on the credit balance on a monthly basis. A separate online account is opened for the Reserve Fund.

17. How are Service Charge accounts audited?

This may be by the client’s own auditor, or by an auditor appointed by Transcend on the client’s behalf.

18. Who are Transcend’s auditors?

For auditing service charge accounts, Transcend use Andy Hill of Cartwrights

19. Do Transcend provide a service for block management company accounts to be audited (as opposed to service charge accounts)?

Service Charge Funds held by an RMC or RTM company are client’s funds and do not belong to the company; these funds are held “in trust”. As such, unless the company has any other source of income, it is financially dormant as far as HMRC is concerned. Accounts excluding Service Charges would be filed at Companies House as dormant, so no audit is required of the Company accounts.

20. How does Transcend prepare a Service Charge Budget? Can lessees be involved in this process?

Transcend will look at a true average expenditure over the last five years and then see what is best going forward taken into account inflation of prices for fixed in items. We will always look at saving money and how we can save money and in what avenues.

Electricity supplier, gas supplier, water supplier, maintenance charges. All of these areas are explored when taking account of a budget. This is built directly with the interaction of the Client.

Transcend expect the budget for each year to be addressed/reviewed four to eight weeks prior to the commencement of the financial year.

21. What information does Transcend circulate?

Transcend issue with our introductory information manual, a card with emergency call-out details, and regular Information Sheets are sent out to advise lessees on relevant issues, and each quarter a summary of expenditure against Budget is circulated.

22. How do Transcend deal with unpaid service charges – what procedures are in place?

Service Charges are invoiced in accordance with the lease however by agreement with  Directors/Freeholder, Transcend can provide the facility for payment by Direct Debit*. This is not recommended where a development is not financially stable to run on a very tight cashflow basis.

After three weeks, a First Reminder is issued, requesting payment within seven days. If the balance remains unpaid after seven days, a Second Reminder is sent out, again requesting payment within seven days. If this remains unpaid after fourteen days, the account will be referred to the specialist Debt Collector and an invoice for the outstanding interest and Transcend’s collection fee is sent to the debtor. The Debt Collector will contact the lessee’s mortgagee, if applicable, and take the necessary action. The Debt Collector recovers their costs from the lessee directly, at no cost to the service charge fund.

23. How do Transcend deal with property owners in breach of their leases?

It depends, in part, upon the nature of the breach, but in general: the first step is a polite letter (copied to the Landlord or Directors). If the breach continues, a firmer follow-up letter is issued (again copied to the Landlord or directors). If the breach is still not remedied, then, in consultation with the Landlord and Directors, the matter would be referred to our, or the Board’s, preferred solicitors.

24. Do Transcend offer an out-of-office hours’ service for emergencies?

All residents are issued with numbers for emergency contractors as part of the Transcend Resident’s Handbook.

25. What period of notice is required for termination of the appointment?

Three months by either side.

26. Is Transcend a member of any professional or trade bodies?

We have just applied to be members of the Association of Residential Managing Agents
(ARMA).

With the inception of the provisions of the Commonhold and Leasehold Act 2002, specificprovision is being made requiring that all client’s funds are maintained separately in individualdedicated clients’ accounts (identified as such to the bank), with no other funds being held in those accounts. Non-compliance will be a criminal offence. Whilst this is one part of the Act that has not yet been implemented, Transcend already complies with this aspect.

Provision is going to be made for any lessee to inspect documents to ensure compliance.