RTM Directors Can You Explain Where Your Block’s Service Charge Money Goes?

Being a director of a Right to Manage company means making decisions that affect your neighbours, your building and the money collected to maintain it. When leaseholders ask why their service charge has increased, your board needs an explanation supported by figures.

Service charge transparency is a current issue. Planned reforms include clearer demands, standardised accounts and annual information about building condition and major works. These measures are not yet implemented, with changes expected during 2027.

Directors can improve their management arrangements now, starting with the person handling the work.

Why The Right Managing Agent Matters

An RTM board sets priorities and makes decisions, but somebody must turn those decisions into action. That means arranging inspections, chasing contractors, monitoring expenditure, maintaining records and answering leaseholders’ questions.

Hiring the right managing agent gives directors reliable support with these tasks. A capable manager identifies problems early, explains the available options and follows work through to completion.

Poor management can allow small repairs to become expensive problems. Unanswered enquiries undermine confidence, while incomplete records make it harder for directors to understand spending or plan ahead.

Appointing an agent does not remove the board’s responsibilities. It should give directors the information, coordination and professional support they need to discharge them.

Before appointing a manager, ask who will handle your block, how often inspections will take place, how repairs are tracked and what reporting you will receive. Agree the scope of service, authority limits and additional charges in writing.

Understand Your Budget

A useful budget should show what the building needs, what each service is expected to cost and how those figures compare with previous spending.

Cleaning, communal electricity, insurance, maintenance and management fees should be identifiable. Your managing agent should explain estimates, significant increases and differences between budgeted and actual expenditure.

Ask Questions About Repairs

When substantial repairs are proposed, request a clear specification and comparable quotations.

Check whether prices include access equipment, waste removal and VAT, and whether exclusions could create additional costs.

The cheapest quotation is not automatically the best choice. Scope, suitability, safety and the contractor’s ability to complete the work matter. Record the board’s decision and its reasons.

Plan Beyond The Next Invoice

Roofs, external decoration, drainage and communal equipment need attention over time.

Where your lease permits a reserve fund, consider whether contributions reflect a realistic maintenance plan. Ask your agent to explain how future works, available funds and proposed contributions fit together.

Have A Question About Your Block?

At MyEstate Luton, we support RTM directors with residential block management across Bedfordshire.

If you have questions about budgets, repairs, reserve planning or choosing a managing agent, email me.

I offer a free initial response with practical management guidance. This is not legal advice. Where your question requires a solicitor, surveyor or another specialist, 

No fee for your initial question. Just straight answers.

Richard Gedall MNAEA | AARLA
Director | MyEstate Luton Limited

Email: luton@my-estate.co.uk
Telephone: 01582 380330
Website: www.my-estate.co.uk

Reform status checked against LEASE’s guidance, updated 1 October 2026. www.lease-advice.org