The Buildings No One Wants to Manage

That’s where the real work begins.

And increasingly, it’s where the real problems sit.

There is a part of the market that doesn’t get talked about enough. Not the well-run estates with strong reserves and clean accounts, but the other side. The buildings with six figure arrears. The ones missing critical compliance documentation. The estates facing urgent capital works with no funding strategy. The developments where relationships between leaseholders, directors, and managing agents have already broken down.

The ones no one really wants to take on.

Over the past 18 to 24 months, that’s exactly where we’ve found ourselves working.

My background was in planning promotion and development strategy, focused on unlocking land and creating value at the front end. Moving into residential asset management, covering block and estate management and lettings, has completely shifted that perspective.

Because what happens after completion ultimately determines whether that value is ever realised.

Across Q1 2026 alone, we’ve taken on a number of new instructions, and a clear pattern has emerged. Many of these buildings are not operationally stable when they arrive. They come with legacy issues that have built up over time, often unnoticed, or simply not addressed.

By the point they change hands, those issues are rarely minor.

We’ve seen service charge arrears that have been allowed to accumulate without structure or enforcement, creating immediate cashflow pressure. Budgets that bear little resemblance to actual costs. Compliance records that are incomplete or out of date, requiring urgent review just to establish the baseline position.

In some cases, major works are unavoidable, roofs, cladding, life safety systems, but there is no reserve strategy in place to support delivery. That creates a difficult position for everyone involved, particularly leaseholders who are suddenly faced with large, unplanned demands.

In one recent instruction, the first priority wasn’t maintenance or improvement. It was simply understanding the financial position, what had been demanded, what had been collected, and what remained outstanding. Without that clarity, no meaningful decisions could be made.

In another, the immediate risk sat around compliance, with key documentation missing and no clear audit trail, requiring rapid assessment before any longer-term strategy could even be considered. Until that baseline is established, everything else carries risk.

These situations are not isolated.

They are becoming more common.

This is not traditional block management.

This is asset stabilisation.

The role of the managing agent has evolved, whether the industry fully recognises it yet or not. It is no longer just about administration, coordination, and reporting. It is about stepping into complex, sometimes fragile situations, identifying risk quickly, and putting structure back in place, financially, operationally, and from a compliance perspective.

That often means making difficult decisions early. Rebuilding budgets so they reflect reality. Implementing proper credit control where arrears have been allowed to drift. Commissioning compliance reviews where there is uncertainty. And in some cases, resetting expectations with leaseholders and directors around what is required to bring a building back to a stable position.

At the same time, the client base is becoming more diverse.

RTM companies, developers, receivers and administrators, private investors, and housing associations. Each comes with different expectations, governance structures, and reporting requirements. Some are highly engaged, others are less familiar with the detail. Some are focused on long-term asset performance, others on short-term resolution.

The ability to adapt across those environments is no longer a nice to have, it is essential.

What has also become clear is that many of the challenges being faced are not isolated.

They are systemic.

Rising costs continue to put pressure on service charge budgets. Insurance, utilities, maintenance, and compliance costs have all increased significantly in recent years. Legislative requirements are also increasing, particularly around building safety and compliance, adding further complexity and responsibility.

At the same time, leaseholders are more engaged and more informed. They rightly expect greater transparency, better communication, and clearer justification for costs.

And yet, the perceived value of block management has not kept pace with the level of responsibility being carried.

There remains a disconnect between expectation and recognition.

That makes delivery even more important.

Clear communication. Transparent financial management. Proactive compliance. And where necessary, a willingness to take decisive action early, rather than allowing issues to compound over time.

One of the more positive shifts has been a growing level of collaboration across the sector.

We’ve spent time working alongside other managing agents and asset managers, sharing experiences, comparing approaches, and in some cases aligning on strategy. That level of openness hasn’t always been typical, but it reflects the reality that improving outcomes across buildings benefits everyone involved, from leaseholders through to investors.

No single firm has all the answers, particularly when dealing with legacy issues or complex estates. Sharing knowledge and experience is becoming an important part of raising standards more broadly.

Looking ahead, the rest of 2026 is shaping up to continue in the same direction.

The pipeline of new instructions is increasingly weighted towards buildings that require intervention rather than oversight. That is where a clear niche is emerging, dealing with complexity, resolving legacy issues, and rebuilding stability.

At Temphis, that has become a core part of what we do.

Not every building needs that level of involvement. Many are well run and require consistent, professional management. But for those that do need intervention, the ability to step in quickly, understand the position, and implement a structured plan is becoming an increasingly important part of the wider residential asset management landscape.

Because ultimately, buildings do not fail overnight.

Issues build over time. Small gaps become larger ones. Delayed decisions create bigger problems.

And by the time a new managing agent is appointed, the focus is rarely on optimisation.

It is on recovery.

The industry may still describe block management as an administrative function.

But on the ground, it is something very different.

It is operational. It is financial. It is regulatory.

And increasingly, it is about stepping into the buildings no one else wants to manage, and turning them back into assets that work.

Joshua Prince MRICS, Founder & CEO, Temphis