The Complete Guide To Residential Block Management

Scanlans is proud to present our Complete Guide To Residential Block Management, a comprehensive resource for anyone involved or interested in the management of residential blocks.

Our team of experienced professionals has put together this guide to help you understand the complexities and nuances associated with block management, what it is and how it works.

The average UK landlord has eight properties in their portfolio, with many properties being located in apartment blocks.

From understanding the basics of block management and what residential property management entails, to understanding your legal obligations under relevant legislations, our guide covers everything you need to know about residential block management.

We also provide practical guidance on topics such as choosing a block property manager, key services to look out for – and other options such as forming a Right To Manage company.

Whether you are already responsible for managing residential apartment blocks or are just looking to understand the process a little better, we hope that this guide will be useful in helping you navigate through these complex areas.

Introduction to Residential Block Management

Block Management refers to the process of managing residential blocks on behalf of Residents’ Flat Management Companies (RMCs) or freeholders.

Block management services are provided by the RMC or freeholder in accordance with the lease in exchange for service charges due from the leaseholders. RMCs and freeholders will usually appoint a professional managing agent to act on its behalf to provide the services and collect the service charge. Block management is referred to by other names such as leasehold management, estate management as well as remote property management in other cases.

The managing agent tasked with carrying out management tasks will ensure that all communal areas are kept in good order. This includes things like garden areas and concierge, as well as ensuring repairs and maintenance of gates, lifts and communal lighting.

Block Management is also in-depth, managing the communication between freeholders and contractors, to ensure maintenance standards are kept. A managing agent is tasked with ensuring that not only do the contractors work effectively but that they are value for money.

Overview Of Current UK Landscape

Whilst the industry is currently unregulated, industry bodies such as ARMA set the standard for those in property management.

Though membership is not mandatory, Scanlans Property Management are proud to be members of ARMA. ARMA has 300 member firms and the total number of residential managing agent firms in England and Wales is estimated to be 870.

What Is Residential Block Management?

Resident management companies vs specialist property management experts

Resident management companies (RMCs) are set up by residents of a particular block and they are elected to manage the communal areas on behalf of all the leaseholders. The RMC is then free to appoint its own managing agent or to take on the responsibility itself.

While this can be a cost-effective solution, it is important to remember that an RMC does not have the same expertise and resources as a specialist property management firm.

Specialist block management firms are usually staffed with qualified professionals who have years of experience in managing residential blocks. They will be able to provide expert advice on all aspects of the management process from arranging contracts for maintenance and repairs to service charge collection.

They will also be familiar with all the relevant legislation such as CLRA 2002 and they are able to ensure compliance with the terms of the leaseholders’ agreement.

Key Services In Residential Block Management

Key block management services often include:

• Property repairs and maintenance

• Insurance and claims

• Site visits

• Health and safety compliance

• Building surveying services

• Accounts and support services.

Below, we’ll dive into the basics of each of these core block management services, so you can better understand exactly what to expect from your block management company.

Property Management Repairs & Maintenance

A block management company is responsible for maintaining all areas of shared space, whether that’s fixing broken lifts or maintaining garden areas.

Preventive property maintenance involves checking carbon monoxide detectors, updating or replacing signs, and doing interior and exterior safety inspections or testing for things like fire alarms and extinguishers.

Common repairs block management are responsible for include:

• Plumbing and electrical repairs
• Heating and cooling repairs
• Structural repairs
• Interior repairs
• Exterior repairs
• Safety repairs

It’s important that you choose a block management company with fast response. Ensure that trusted contractors are used to carry out any work required.

Whilst most work will be non-urgent, in some cases there will be emergencies. So ensure that a block management company has adequate 24 hour emergency provisions should you need them.

Insurance and Claims

In your capacity as a property manager, you are accountable to the owner for nearly all facets of a rented property or portfolio of properties, from establishing rent and finding tenants to resolving maintenance concerns and handling financial matters. All of those responsibilities obviously come with risk, and when anything goes wrong, whether it be property damage, tenant injury, or client financial losses, having the proper property management insurance in place is essential to preventing unplanned expenditures and safeguarding your livelihood.

There is a range of insurance policies you should consider when part of a block management agreement. Whether its contents or liability, a key service for a block management company is ensuring its clients are fully protected and your cover is renewed.

Site Visits

Site visits are crucial; to ensure the block is compliant with regulation and there are no health and safety issues. A block management company will regularly send representatives to ensure that all common areas, such as the grounds or leisure facilities, are in good working order.

A property manager will inspect the site for any maintenance concerns that require attention and create a report to record these items. They will also make sure that residents are contributing to the maintenance of the property and that routine contracted work is completed to a high standard.

Health & Safety Compliance

As you’d expect, there are several areas of legislation that need to be adhered to. A residential block management company will ensure protection in a number of key areas by arranging visits to cover lifts, gates, asbestos and much more.

Perhaps the most important of health and safety services, property managers will inspect the building to make sure all fire safety regulations are being adhered to, as well as organising for electrical inspections to be carried out every five years.

Building Surveying Services

A property manager can benefit from the building surveyor’s experience in regards to the structure, faults, structural difficulties, compliance with legislation, health and safety, fire, and other essential matters. Building surveyors can provide advice on the work needed over a safe 15 or 20-year maintenance cycle. Provide advice on the expected lifespan of building components, and manage those expenses to cause the least amount of difficulty for flat owners.

Property Management Accounts & Support Services

As well as servicing the grounds and common areas, a block management company can also provide a number of support services. This includes Accounting, where they ensure all contractors are paid and monies collected. Furthermore, they can provide admin support such as service charge budgets and facilitating meetings between property managers.

Block Management Services Table of Comparison

What is Right To Manage (RTM)?

Right to Manage provides flat occupiers the opportunity to manage their own property.

Leaseholders can set up a right to manage (RTM) company and take over the management of the property away from their Landlord. This can be done without the Landlord’s permission, though places all the responsibility with the Leaseholder. This means it is up to them to ensure they adhere to legislation in the management of the property.

To qualify for RTM, 66% of the flats must be occupied by tenants who has an original lease of more than 21 years, with at least 75% of the block for residential use.

If the leaseholder decides to go down the RTM route, they’ll be responsible for the maintenance of communal areas and structural parts, plus collecting the service charge.

What is Block Management Software?

To help manage the development effectively, good managing agents will use the latest block management software to administer accounts, payments, repairs and more. Ensure that these are compliant with relevant accreditors, such as RICS and ARMA.

Software to consider:

Grosvenor Systems

Blocksonline (ARMA Partner)

Resident (RICS Member)

Blockman (ARMA Partner)

If you are planning to manage your block on your own it will be worth considering investing in block management software to help you do this.

Utilising Block Management Courses & Training

If you’re looking to get into block management there are a number of options to help you improve your knowledge and understanding. In order to provide efficient management services, it is advised that the IRPM courses are completed – https://www.irpm.org.uk/public/home.

This is the professional standard for block management and assesses the capabilities of those who take the course.

Other courses to consider:

ARMAs Introduction to block management – This one day course will enable attendees to learn about the role of a block manager and develop their understanding of the day-to-day tasks involved.

Guide Of Letting Management (GLM) – The course provides guidance on block management and the administration of blocks; it deals with section 20 consultation, managing all matters relating to service charges and other essential processes.

Regulations In Residential Block Management

ARMA is the key regulator in the Residential Block Management industry. Though be warned, regulation is not mandatory. It is therefore important to look out for those companies that are part of ARMA as this highlights there stance on adhering to best practice.

ARMA is the association of Residential Managing Agents, and sets standards for those carrying out block management services. All members must meet these standards to remain a member, so you can be sure that if a block management company is regulated by ARMA, they take great care in managing its developments.

As well as regulations set under ARMA such as fire regulations, there are guidelines and rules for communal areas and communal gardens that should be set by the block management company to keep residents safe and secure.

You’ll also want to look out for FSA regulation, especially if the company is providing insurance services.

Areas our block management services cover:

Block Property Management Manchester

If you’re looking for residential block management services in Manchester, we’ve got you covered.

Block Property Management Leeds

If you’re looking for residential block management services in Leeds, you’re in the right place.

Block Property Management Liverpool

If you’re looking for block management services in Liverpool, Scanlans is the choice for you. Our staff have specialist knowledge of both the areas we cover as well as the sites we manage, giving you a dedicated and effective service.

Block Property Management Birmingham

If you’re looking for residential block management services in Birmingham, Scanlans has over 25 years worth of experience providing residential block management services across the city.

Block Property Management Cheshire

If you’re looking for residential block management services in Cheshire, our team has specialist knowledge of all properties in Cheshire we manage as well as the local areas to give you the best advice possible.

Find Out More About Scanlans Residential Block Management Services

What to look for in Block Management Companies

When deciding between block management companies there are a few things you need to look for when evaluating service providers. Before you approach any make sure you think about the following:

Good managing agents should be:

Knowledgeable

• They should have a complete understanding of the structure and meaning of leases
• Have in depth knowledge of all the relevant Landlord and Tenant legislation
• Can help you easily understand your rights and obligations

Professional

• Are committed to best practice, remember to look out for ARMA membership or other industry bodies.
• Strive to provide a high level of customer service. Make sure to check reviews.
• Adhere to all relevant standards and codes of practice
• They have an independent complaints procedure
• They subject themselves to external scrutiny

Transparent

• They should have no hesitation in providing you with full accounting facilities for budgeting, service charge and year-end accounting and give you access to them
• They should be able to provide you and fellow leaseholders with the best way to spend your service charge.
• If they use any other service providers they should be transparent about this and the costs or commissions involved.

And finally…

Scanlans Property Management is run by Ian Magenis, Tony Mancini and Neil Inman, who between them have over 60 years property management experience, primarily in the residential block management area. So, you can rest assured that our team is knowledgeable and experienced in the field.

Our team of fully qualified property professionals provides a dedicated service to ensure your block is well-managed and maintained, day-in, day-out. We’re also regulated by RICS and ARMA, so you know you’ll get a quality service.

If you’re looking for professional block management services, then look no further than Scanlans Property Management.

Let’s chat! Contact our block property management experts today to get started.

Block Management FAQs

What is block management?

Residential block management refers to the management of a residential block of flats or estate. A block management company will take charge of all financial, legal and maintenance aspects with regards to the communal areas and operations of that residential estate.

How do you manage a block of flats?

Managing a block of flats takes time and expertise. You can choose to self manage, form a RTM company or use a block management company such as Scanlans.

What is an RTM company?

Right to Manage provides flat occupiers to opportunity to manage their own property.
Leaseholders can set up a right to manage (RTM) company and take over the management of the property away from their Landlord.

What is the difference between property management and block management?

Despite having similar names and offering similar services, property management and block management are two different types of management. While a Block Management team is in charge of managing a flat complex as a whole, Property Management concentrates on single-tenanted buildings.

What does a residential management company do?

In essence, it’s a business established especially to take care of common facilities used by everyone in the building. This might include stairways, gardens, rooftops, and so on. When a developer completes a building and wants to transfer management authority to the leaseholders, an RMC is typically established.

Block Management FAQs