A block management company is a professional property management company responsible for managing and maintaining communal areas and facilities in blocks of flats or apartments. These companies are appointed by the freeholder and are accountable for the building’s overall maintenance and management.
Block management companies can perform various tasks, from financial management to property maintenance, compliance with legal and regulatory requirements, and dispute resolution. One of the primary responsibilities of a block management company is the collection of service charges and ground rent from individual leaseholders or freeholders in the block. These funds are then used to cover the costs of running the building and its communal areas, including cleaning, maintenance, repairs, and insurance.
Block management companies must also ensure that the building complies with all relevant legal and regulatory requirements, such as health and safety legislation, fire safety regulations, and environmental regulations. In addition to financial management and legal compliance, block management companies are often responsible for day-to-day management tasks, such as cleaning, gardening, and security. They may also handle issues related to tenant management, including lease compliance, rent collection, and dispute resolution.
Services Provided by Block Management Companies
Block management companies provide services to manage and maintain communal areas and facilities in blocks of flats or apartments, including:
Financial management:
Block management companies collect service charges and ground rent from individual leaseholders or freeholders. These funds cover the costs of running the building and its communal areas, including cleaning, maintenance, repairs, and insurance. The block management company also prepares and manages the annual service charge budget and accounts, ensuring funds are appropriately allocated and managed.
Property maintenance:
Block management companies are responsible for the upkeep and repair the building and its communal areas, such as hallways, stairwells, lifts, gardens, and parking areas. They ensure that maintenance is carried out to a high standard and on time and that any repairs are completed promptly.
Health and safety compliance:
Block management companies ensure that the building and its communal areas comply with all relevant health and safety legislation, such as fire safety and environmental regulations. They ensure that appropriate risk assessments are carried out and that any necessary measures are taken to ensure the safety of residents.
Legal compliance:
Block management companies ensure that the building and its management comply with all relevant legal and regulatory requirements, such as leasehold law and lease terms. They also ensure that the building and its facilities are accessible to all residents, including those with disabilities.
Dispute resolution:
Block management companies handle disputes between leaseholders or with external parties, such as contractors or service providers. They may provide a mediation service or work with independent mediators to resolve conflicts fairly and efficiently.
Tenant management:
Block management companies may manage tenants, including lease compliance, rent collection, and dispute resolution. They ensure tenants know their responsibilities and obligations and that issues are handled promptly and effectively.
Day-to-day management:
Block management companies may be responsible for daily cleaning, gardening, and security tasks. They ensure that the building and its communal areas are kept clean and tidy and that security measures are in place to protect residents.
Resident Expectations of Block Management
Residents of a block of flats or apartments can expect a block management company to provide a range of services to manage and maintain communal areas and facilities, including:
Clear communication:
Block management companies should communicate clearly and promptly with residents, informing them about any changes or issues affecting the building and responding to their questions and concerns.
Maintenance and repairs:
Block management companies should ensure that the building and its communal areas are well-maintained, clean, and safe. They should respond promptly to any maintenance or repair issues and ensure that repairs are performed to a high standard.
Health and safety:
Block management companies should ensure that the building and its communal areas comply with all relevant health and safety legislation, such as fire safety and environmental regulations. They should carry out appropriate risk assessments and ensure that any necessary measures are taken to ensure the safety of residents.
Compliance:
Block management companies should ensure that the building and its management comply with all relevant legal and regulatory requirements, such as leasehold law and lease terms. They should ensure that the building and its facilities are accessible to all residents, including those with disabilities.
Financial management:
Block management companies should manage the building’s finances effectively and transparently, collecting service charges and ground rent from individual leaseholders or freeholders and ensuring that funds are appropriately allocated and managed.
Dispute resolution:
Block management companies should handle disputes between leaseholders or with external parties, such as contractors or service providers, reasonably and efficiently.
Tenant management:
Block management companies should manage tenants effectively, including lease compliance, rent collection, and dispute resolution. They should ensure tenants know their responsibilities and obligations and that any issues are handled promptly and effectively.
Overall, residents of a block of flats or apartments should expect a block management company to provide a high level of service, focusing on effective communication, maintenance and repairs, health and safety, compliance, financial management, dispute resolution, and tenant management. By working closely with residents and the freeholder, block management companies can help ensure that the building and its communal areas are well-managed and maintained and that residents enjoy a safe and comfortable living environment.
Block Management at Work
Block management works by appointing a professional property management company, also known as a block management company, to manage and maintain communal areas and facilities in blocks of flats or apartments.
The freeholder, who is responsible for the overall maintenance and management of the building, typically appoints the block management company. The block management company then works on behalf of the freeholder, managing the day-to-day running of the building and its communal areas.
The block management company provides services to ensure the building and its communal areas are well-maintained and compliant with all relevant legal and regulatory requirements. These services include financial management, property maintenance, health and safety compliance, legal compliance, dispute resolution, and tenant management.
Block residents typically pay service charges and ground rent to the block management company, which covers the costs of running the building and its communal areas. The block management company prepares and manages the annual service charge budget and accounts and ensures that funds are appropriately allocated and managed.
Communication and transparency are essential to the effective operation of block management. The block management company should communicate regularly with residents, informing them about any changes or issues affecting the building and responding promptly to any questions or concerns.
Residents may also be involved in the decision-making process for the management and maintenance of the building, such as through a residents’ association or a management committee. The block management company should work with residents and the freeholder to maintain and improve the building and its communal areas.
Appointing a Block Management Company
The freeholder of a block of flats or apartments typically appoints a block management company. The freeholder, who owns the building and the land on which it is built, is responsible for the overall management and maintenance of the property.
When a freeholder appoints a block management company, they usually invite tenders from several companies. The tenders will typically include details of the services, the costs, and any relevant experience or qualifications.
The freeholder will then assess the tenders and choose a block management company based on the quality and cost of the services offered, the company’s experience and qualifications, and the freeholder’s preferences.
Once a block management company has been appointed, they will work closely with the freeholder to manage and maintain the building and its communal areas. They will typically collect service charges and ground rent from individual leaseholders or freeholders in the block and use these funds to cover the costs of running the building and its communal areas.
The appointment of a block management company may also be subject to the lease terms. The lease may specify specific requirements or restrictions relating to the management and maintenance of the building, and the freeholder and the block management company must ensure that they comply with these terms.
Association of Residential Managing Agents (ARMA)
ARMA, or the Association of Residential Managing Agents, is a trade association for residential managing agents in the UK. It is a not-for-profit organisation established in 1991 to promote high standards of professional property management.
ARMA represents over 300 member companies that collectively manage over 1.3 million leasehold properties in the UK. Its members range from small independent firms to large corporate groups, and they provide a range of services, including block management, estate management, and letting services.
One of ARMA’s key roles is to provide guidance and support to its members, helping them to maintain high standards of professionalism and service. It offers training and education programs for property management professionals and a range of resources and best practice guides to help members stay updated with industry changes.
ARMA also offers accreditation to members who meet its standards of professionalism and service. ARMA-Q is a set of industry-leading standards for residential management companies that covers all aspects of their business, from customer service to financial management and health and safety. ARMA members who achieve ARMA-Q accreditation are recognised as among the industry’s best residential management companies.
In addition to supporting its members, ARMA also works to raise standards across the residential leasehold management industry. It campaigns for regulatory reform and better protection for leaseholders, and it provides information and advice to homeowners on their rights and responsibilities under the terms of their lease.
Right to Manage (RTM)
Right to Manage (RTM) is a legal process in the UK that allows leaseholders of a block of flats or apartments to take over the management of the building from the freeholder. The process is set out in the Commonhold and Leasehold Reform Act 2002.
Under the RTM process, a group of leaseholders can form a company and serve a notice on the freeholder of the building, stating their intention to take over the management of the property. The notice must meet specific legal requirements, including the number and proportion of leaseholders supporting the application.
Once the notice has been served, the freeholder can respond. If the freeholder does not object, or if their objection is not successful, the RTM company can take over the management of the property. This includes responsibility for maintenance and repairs, financial management, and compliance with legal and regulatory requirements.
The RTM company does not have to prove any fault on the part of the freeholder to take over the management of the property, and the freeholder is entitled to be compensated for the loss of management fees. However, the RTM process can be complex, and it is recommended that leaseholders seek professional advice and guidance before making an application.
The RTM process is intended to give leaseholders greater control over their property management and protect them from poor management practices or high fees. By taking over the management of the property, leaseholders can ensure that maintenance and repairs are carried out to a high standard, that funds are managed effectively and transparently, and that the building and its communal areas comply with all legal and regulatory requirements.
Block Managers
There is typically a dedicated block manager or managing agent who is responsible for the day-to-day management of the building and its communal areas. The property manager or managing agent is the main point of contact for residents and the freeholder. It is responsible for coordinating and overseeing the services provided by the block management company.
The property manager or managing agent will typically have a range of responsibilities, including financial management, property maintenance, health and safety compliance, legal compliance, dispute resolution, and tenant management. They will work closely with the freeholder and any management committee or residents’ association to ensure that the building and its communal areas are well-managed and maintained and that residents enjoy a safe and comfortable living environment.
The property manager or managing agent will also ensure that the block management company complies with all relevant industry regulations and standards, such as those set out by ARMA (the Association of Residential Managing Agents) and the Royal Institution of Chartered Surveyors (RICS).
The property manager or managing agent should have the relevant qualifications and experience to carry out their role effectively and a thorough understanding of the legal and regulatory requirements that apply to residential property management. They should also have excellent communication and interpersonal skills and be able to work collaboratively with residents, the freeholder, and any other stakeholders involved in the management and maintenance of the building.
Block Management Company FAQs:
What services does a block management company provide?
A block management company provides services to manage and maintain communal areas and facilities in blocks of flats or apartments. These services typically include financial management, property maintenance, health and safety compliance, legal compliance, dispute resolution, and tenant management.
How is a block management company appointed?
The freeholder of a block of flats or apartments typically appoints a block management company. The appointment is generally made following a tender process, and the block management company will work closely with the freeholder to manage and maintain the building and its communal areas.
What is Right to Manage (RTM)?
Right to Manage (RTM) is a legal process in the UK that allows leaseholders of a block of flats or apartments to take over the management of the building from the freeholder. By forming an RTM company and serving a notice on the freeholder, leaseholders can gain greater control over their property management.
How much does using a block management company cost?
The cost of using a block management company will depend on a range of factors, including the size of the building, the services required, and the level of management and maintenance required. Typically, the cost is covered by service charges and ground rent paid by individual leaseholders or freeholders in the block.
How can residents contact their block management company?
Residents can typically contact their block management company by phone, email, or online portal. The property manager or managing agent is usually the main point of contact and should be available to answer questions and address any issues or concerns.
How can residents get involved in managing their block?
Residents can get involved in managing their block by joining a management committee or residents’ association or by attending meetings and providing feedback to the block management company. This can help ensure that residents have a say in the management and maintenance of the building and can help improve the overall living environment.
Related Articles
- What is the Difference Between Block Management and Property Management?
- A Guide to Block Management
- Why Does a Building Need to be Managed?
- How Can You Change Your Block Management Company?
- Understanding the Right to Manage (RTM)
