How To Choose A Block Management Company

A block management firm looks after the communal areas and shared facilities of residential buildings such as blocks of flats or apartments on behalf of freeholders, property developers, residents’ management (RMCs) or right-to-manage (RTM) companies. Key responsibilities range from financial management (including collecting service charge and ground rent) to arranging insurance, communal maintenance and repairs plus health and safety and legal compliance, while ensuring structural safety and mitigating risk. There should also be planned preventative maintenance schedules in place to prevent expensive emergency repairs, alongside regular inspections of structural elements and communal areas to retain the building’s integrity.

Block managers also enforce lease agreements, liaise with residents and carry out routine property inspections. In short, they’re essential to the smooth and efficient operation of a property comprising multiple units and help maintain a high standard of living for residents while retaining the property’s long-term value.

So it’s vital that, if you’re one of the above-named organisations and in need of a block management company, you make the best choice. Finding the right partner can make a significant difference in terms of whether your property is a successful investment or not. Here are some pointers to help you make your decision:

1.)    Understand what you need

Spend some time considering your priorities and needs. Think about how big your property is, what type of place it is and how many residents it houses. Think, too, about your budget, and the particular services you may need which are specific to your block. This will put you in a stronger position to identify the managing agent which can best meet your requirements.

You’ll probably want a comprehensive service package covering all elements of block management so that your property is well cared for. Additionally, you’ll likely prefer to hire a company with a strong local presence, making the service more efficient, tailored and cost-effective.

2.)    Evaluate experience and expertise

Ask about the company’s experience and expertise and read references from past or existing client. Equally, as when selecting any other type of service, check online reviews. You should also be looking for a clear, transparent service and for a company that has previously managed blocks similar to yours. Look for a diverse portfolio of managed properties and expertise in dealing with varied kinds of residential blocks.

Equally, look for membership of the Association of Residential Managing Agents (ARMA) – now The Property Institute – plus the Royal Institution of Chartered Surveyors (RICS) and the Institute of Residential Property Management (IRPM).

As far as possible, assess whether you’ll feel reassured that your block is in safe hands; preferably via an in-person meeting.

3.)    Discuss contracts and fees in detail

 Make sure you understand all the costs involved, including any upfront charges, ongoing fees and extras for particular services related to your property. Study the contract carefully, seeking legal advice as required.

Potential red flags include promises which sound unrealistic, slow or unresponsive communication, a lack of transparency and feeling pressurised into signing a contract, especially if there’s something you feel unsure about.

4.)    What innovation and tech does your potential provider use?

Modern, robust technology is no longer a luxury but an essential part of delivering efficient, transparent and cost-effective block management. And it has a direct impact on communication, financial transparency, maintenance and compliance. With a modern, cloud-based system, you as freeholder can enjoy 24/7 access to information. So look for things like a cloud-based portal, AI support and an integrated system with one platform linking repairs, accounts and communication. That means you avoid a disjointed process based on spreadsheets.

5.)    Expertise in leasehold law and compliance

Your block management partner will need to have a deep understanding of its legal obligations and building regulations compliance. The company also needs a strong knowledge of lease interpretation and enforcement, so that leaseholders meet their own obligations.

Other critical aspects they need to appreciate include:

• Fire risk assessments

• Health and safety regulations
• General building compliance
• Effective dispute resolution between leaseholders and freeholders so things don’t escalate into legal disputes

Block management from McGlashans Property Services

If you’re looking for an established, market-leading block management company in central London, the dedicated team at McGlashans Property Services is here to help. We put our customers at the heart of everything we do, and will be with you every step of the way. We meet all the criteria outlined above and more.

Read about our comprehensive block management services. Then, to have an initial chat about what you need, get in touch.