© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
In my opinion, in all but the smallest blocks, i.e. less than 10 units, self-management is not an option unless the board is willing not only to invest a substantial amount of time in day-to-day management, but also they must be willing to invest money in computer software to manage the accounts. In addition, there must be a member of the board with sufficient legal experience to understand the lease, the Landlord and Tenant Acts, and the host of legislation, including health and safety, which governs the management of the block. This level of expertise is rarely available to part-time directors or lessees however well intentioned, and the financial benefits of not employing a professional managing agent are quickly out-weighed.
A professional managing agent should bring the following skills to management of the block:-
1. An organised approach to the planning and collection of service charge and reserve fund monies.
2. The ability to develop a planned maintenance prog-ramme and the calculation of the reserve fund requirements so that the costs of redecoration, major works and repairs can be spread over a period of years.
3. An independent assessment of prioritisation of major works and service charge expenditure.
4. An impartial approach to the collection of arrears or late payment of service charge monies.
5. Good accounting and administration.
6. The ability to handle lessee disputes and counter claims against service charge demands with a sound understanding of the lease.
7. Experience and knowledge of the market place so that all recurrent maintenance contracts are placed at competitive prices, best rates are achieved for insurance and utilities, and on-site staff are managed effectively and paid market rates.
From the above it should be apparent that management is a full time responsibility and it is not simply the job of arranging maintenance on a reactive basis or the supervision of major works contracts. Furthermore, the diversity of the problems that arise from residential manage-ment today, and the careful balancing act that a managing agent has to achieve when maintaining both the landlord and the lessees covenants need considerable experience. The one-man managing agent, or even the small firm of managing agents, like a self-appointed team of part time directors, would find it very difficult to provide effective management in today’s legal environment. Today managing agents must have adequate professional indemnity cover and have a team of property managers supported by accountants, facilities managers, surveyors and company secretaries to be able to provide a realistic service.
As a further guide for RTM board members considering the appointment, or otherwise, of a managing agent they should read the LEASE/ARMA/ARHM booklet entitled "Appointing a Managing Agent". This is a definitive, unbiased professional guide.