Block management is when a company has been appointed to take care of managing the financial and operational duties of a block of flats where the individual properties are owned by different leaseholders. If you’re a freeholder looking to appoint a block manager, Taylor Chartered Surveyor can provide residential block management in Loughton, Essex and the surrounding areas. Contact us to discuss your block management needs.
What is a leasehold?
A leaseholder owns the property but not the land that the property is built on. The land is owned by the freeholder. When you buy a leasehold property, you are renting from a freeholder for a long period of time. When the freeholder grants you a lease, they become your landlord. This means they are therefore responsible for the maintenance and repair of the building that your property is in. The freeholder will impose a service charge on the leaseholder, to cover the costs of maintaining the communal areas. Typically, the freeholder will appoint a managing agent to manage their block.
What are service charges?
A service charge is the payments that the leaseholder makes to the landlord for services such as buildings insurance, repairs, maintenance, gardening and communal facilities. Block management is paid for through the service charge.
What is block management?
Also known as leasehold management or estate management, it is the managing of all the communal areas of residential leasehold buildings, so effectively what the service charge pays for. As well as maintaining the buildings’ structure and shared spaces, it also involves dealing with insurance, accounts and legal responsibilities.
What does the block manager deal with?
- Any repairs or maintenance.
- Maintaining the garden.
- Painting and decorating communal areas.
- Cleaning communal areas.
- Routine inspections to ensure the building is in good order.
- Buildings insurance.
- Collection of service charge payments.
- Processing payment of suppliers’ invoices.
- Budgeting
- Enforcing lease terms.
- Lease and legislation advice to individual unit owners.
What does a block management company need to know?
Residential block management services are complex and require professionalism, dedication and time. Block management involves a great deal of responsibility, so you need a company that you can rely on. The company will need to have knowledge in:
Accounts – They will prepare annual budget reviews and deal with service charge accounting.
- Legislation knowledge – They need to have a good understanding of landlord and tenant law, property legislation and leasehold matters.
- Building construction – They need to ensure the building is in a fit state.
- Health and safety regulation – They need to guarantee the site is always compliant with current UK laws. They will coordinate necessary routine safety inspections.
- The lease terms of each leaseholder – Individual flats in a block can have different leases, so the block manager needs to understand the individual terms of each lease.
What you should expect from your block management agent?
The block manager needs to provide a good value service for both the freeholder and leaseholder. A poorly managed property can have an impact on the enjoyment of the leaseholder’s home and its future value. You should expect them to be fully knowledgeable in the different areas of responsibility that they’ll cover, act professionally, deliver great customer service and comply with all standards and codes of practice.
They become a point of contact between the freeholders and contractors. The block manager will be in constant communication with various contractors so it’s a very time-intensive job. With such a wide and demanding list of things that they cover, you need to appoint an expert and knowledgeable block manager. Ultimately block management requires professional skills that a landlord may not have. Hiring a block manager takes the stress and time-consuming tasks away from the freeholder. The block management agent should make your life easier and ensure that your building is always running smoothly.
If you’re looking for a block manager, Taylor Chartered Surveyor provides block management in Loughton, Essex and beyond. With our proven track record and over 40 years of experience, you can trust us. Get in touch to discuss your residential block management needs.