Service charges – the lifeblood of block management?

Managing agent or self-manage?

Self-management. When leaseholders have had a bad experience with unresponsive or expensive managing agents, it can seem like a much more appealing option. And it’s true, for smaller blocks of flats, self-managing can mean a better quality of block management and better value for money. Saving money on administration and investing it back into the building to cover for the possibility of any upcoming major works is a sensible plan. It’s not always the easiest option though!

Living in a flat carries with it communal responsibilities; however, as with most groups of people, the majority of residents tend to be pretty apathetic and it falls to a few conscientious souls to keep things on track. Effective property management is dependent on good cashflow and efficient credit control; having enough cash in the kitty to pay contractors when needed will keep them onside and willing to make themselves available for the next emergency.

What’s the key to successful property management?

Collecting everyone’s service charges on time is key to successful resident management companies, whether self-managed or not, but a lot of self-managed blocks neglect to send out service charge demands. This means that they are relying on the residents’ integrity and goodwill to pay their service charge on time. Worse, from a legal point of view, without sending out a service charge demand, or if it has been served incorrectly, there is no way of recovering the debt if someone defaults or stops paying.

It’s crucial, therefore, for people who self-manage properties to set up a system that works for service charge demands and collection. There are two elements that must be considered: what the lease says, and how the law says you must make these demands. If you’re not an experienced block managing agent, or a solicitor or accountant who specialises in service charge legislation and accounts, you could end up in problems before you know it.

You May Also Enjoy

Home and Living

Industrial LED Lighting vs. Traditional Lighting: What Property Managers Should Know

When managing a property, lighting is often overlooked, yet it directly impacts safety, efficiency, and operational costs. Property managers are now tasked with choosing between traditional lighting systems, such as incandescent or fluorescent bulbs, and newer industrial LED lighting. Understanding the differences between these options is essential for making an informed decision that benefits your…
Read More
Estate Agent Talk

Save a house deposit faster than ever in THESE areas!

Aberdeen City in Scotland is named the best place to live if you want to save for a house deposit fast, saving in as little as a year and a half Inverclyde is second, whilst Burnley is third Average salaries and house prices in each area as well as deposit amounts were taken into consideration…
Read More
Estate Agent Talk

Furnishing Your Rental Property on a Budget: Tips for UK Tenants

Moving into a rental property often presents tenants with the exciting challenge of making the space feel like home without overstepping budget constraints. Whether you’re in Milton Keynes or anywhere in the UK, it’s possible to create a comfortable, stylish living environment without spending a fortune. Furnishing a rental property on a budget requires a…
Read More
Kerb appeal
Breaking News

Private rent and house prices, UK: October 2024

Average UK private rents increased by 8.4% in the 12 months to September 2024 (provisional estimate); this is unchanged from the 12 months to August 2024. Average rents increased to £1,336 (8.5%) in England, £760 (8.3%) in Wales, and £973 (7.2%) in Scotland, in the 12 months to September 2024. In Northern Ireland, average rents…
Read More
Breaking News

Foxtons Lettings Market Index – September 2024

Foxtons data points towards a resilient Lettings market despite seasonal dip • New market listings increased 12% from September 2023 • Applicant demand decreased 35% month-on-month from August, aligning with the typical seasonal dip • Applicant budgets remained 2% higher year-on-year in September, higher than any other year September signals the close of a highly…
Read More
Love or Hate Rightmove
Breaking News

Record high rents as landlords brace for budget impact

Average advertised rents outside London hit a 19th consecutive quarterly record of £1,344 per calendar month (pcm), up 5.2% from last year, although this is the slowest rate of growth since 2021 London rents also hit a new record at £2,694 pcm, 2.5% higher than last year (£2,627 pcm) The balance between supply and demand continues…
Read More