The Negotiator has been told that the collapse of outsourced property management firm ARPM involves around 70 agencies and 8,000 properties.
The source, who is closely involved in the property management sector but wishes to remain anonymous, claims ARPM was charging too little for its service, making it vulnerable to financial shocks.
News of troubles at the Rickmansworth-based company, which has offices at a Regus building, surfaced in late August but were only confirmed during the first days of September as many landlords contacted lettings agents who used the company to report rents payment deadlines being missed.
This included one independent agency, Midlands firm Pure Properties which reported over a dozen landlords reporting unpaid rent. Its director Richard Burke told The Neg that he faced having to reimburse his landlords with little prospect of getting his money back.
Last week it was subsequently confirmed that ARPM had ceased trading and that an insolvency and debt management practitioner expected to appointed soon to manage the firm.
Umang Patel, founder of Neum Insolvency, confirmed that he is advising Ash Road Property Management Ltd – which trades as ARPM – and that he expects the struggling company to instruct him on putting the business into liquidation.
Also, last week Robert May, who knows the property management process well after many years spent developing software for letting agents and property managers, said companies like ARPM needed greater oversight of their operations given the large amounts of money they can handle every month.
Simon Duce (pictured), who is a co-founder of the company, has not responded to requests for information, and has been absent from his social media accounts since August 20th.