Block Management Costs Too Much? Ask Richard What You’re Paying For—and What to Question

Ask Richard: Why Does Block Management Cost So Much—and What Should You Ask Before Paying?

By Richard Gedall MNAEA | AARLA, Director of MyEstate Luton Limited

Your service charge has increased again. The communal areas look much the same, repairs remain outstanding, and getting a clear answer feels harder than it should.

So where is your money going?

It is a fair question. But before comparing block managers, you need to understand exactly what you are comparing.

Your service charge is not all management fees

Your bill may include buildings insurance, communal electricity, cleaning, gardening, repairs and contributions towards future expenditure. The managing agent’s fee is one part of that total.

A high service charge does not automatically mean the agent is overcharging. Equally, a low management fee does not tell you the full annual cost. Start by asking for a breakdown that separates the agent’s charges from the building’s expenses.

Why do management fees vary?

Buildings require different levels of work. Lifts, extensive grounds, complicated maintenance, staffing and frequent inspections can affect the service required.

The question is whether the price reflects an agreed service—and whether that service is actually being delivered.

If you pay for inspections, ask how often they happen and how findings are recorded. If repairs are being coordinated, ask who is responsible for following up outstanding work.

What might the headline price leave out?

A quotation may look attractive until you examine the additional charges. Extra meetings, major-works administration, project supervision, sale enquiries and work outside the routine appointment may carry separate fees.

Those charges are not automatically unreasonable. They should be explained clearly before you commit.

Ask whether insurance arrangements or contractor referrals generate any commission, referral payment or other financial benefit, and how this is disclosed.

Eight questions worth asking your block manager

1. What is your total management fee, including VAT, for the whole building and per flat?

2. Which services are included, and can we have a complete schedule of additional charges?

3. How many inspections and meetings are included, and what written reports will we receive?

4. Do you receive any insurance commission, contractor referral payment or other financial benefit?

5. How are contractors selected, and who approves quotations and expenditure?

6. What reserve funds are held, and what planned expenditure supports the contributions requested?

7. Who is our named contact, and what response times have you committed to?

8. What notice, exit charges and handover arrangements apply if we change agents?

What should you ask to see?

Request the annual budget, an explanation of significant increases, the latest available accounts and the planned-maintenance programme. Ask how you can obtain supporting information about expenditure.

RTM directors should also obtain a clear written management agreement setting out authority limits, reporting arrangements and responsibilities.

Compare agents against the same requirements. Cutting the fee while losing essential inspections or financial oversight can be a false economy.

Ask me your block-management question

If you are a leaseholder, freeholder or RTM director struggling to understand a charge or quotation, contact me. I can help you identify the questions to ask and explain our approach at MyEstate.

No fee for an initial question. Just straight answers.

Richard Gedall MNAEA | AARLA
MyEstate Luton Limited
01582 380330
luton@my-estate.co.uk
https://www.my-estate.co.uk/

Practical management guidance, not legal advice.

The questions reflect LEASE guidance on management agreements, fees, commissions, reporting and contractor selection. Service-charge recovery depends on the lease. lease-advice.org