Because of the increasing number of apartments blocks in cities and towns, block management has become a more important service.
Many people might, and do. Many people might – and do – grumble about the service fee and assume that the block management company is receiving all the cash. Many residents are getting a great return on a small amount of money. What exactly does a block manager get residents?
What is Block Management?
Block management refers to the management of a residential block consisting of individual properties that are shared by different leaseholders or share of freehold. This involves managing the structure of the building and sharing spaces, as well as dealing with financial accounting and insurance. Block managers have many legal responsibilities.
It is important to not confuse residential block management with property management. This typically refers either to the operation, maintenance, and oversight of rental properties for the landlord or commercial management, which involves the management of office space and retail spaces.
What are Leaseholders?
Most flats in England are owned on a leasehold basis. These could include purpose-built developments, conversions of houses, or residential apartments that are above commercial or retail space. The freeholder (or landlord) owns the structure and land on which it is built. The freeholder grants the purchaser the right to occupy the property for a specified number of years. The legal term for the purchaser of a lease is a leaseholder (or tenant).
Both parties agree to the terms of the lease. The leaseholder will be responsible for paying service charges and adhering to specific conditions regarding the use and occupation. The freeholder is responsible for maintaining, managing, and collecting service charges from all leaseholders. They will also be responsible for insuring the building.
What are Service Charges?
Service charges are payments made by the leaseholder to the freeholder in order to pay for their share of the costs of the services provided by the freeholder.
The lease agreement contains details about the service fee and the portion that each leaseholder is responsible for.
What services does a Block Managing Agent provide?
While some freeholders may choose to manage their building, it is more common to hire a professional block manager to take care of the property.
These are the top services a block manager will offer:
The block management company will take care of the building and the communal areas. It could include anything from repairing a damaged lift to replacing an old roof.
Block managers will make sure that contractors are trusted and that the work is done to a high standard. Block managers must disclose how they spend the service fee.
While most jobs are not urgent, a block management firm will respond 24 hours a day to emergencies.
Insurance and Claims
All freeholders should have different insurance policies. This includes liability, buildings, and contents insurance. Block management companies will make sure that the building is adequately covered and handle any insurance claims.
Leaseholders are responsible for insuring their flats.
Block management companies will visit the property on a regular basis to make sure that it and its surrounding areas comply with safety and health regulations.
Block managers must also be legal. They need to be able to understand and enforce all lease terms, which can differ between flats.
There are many safety and health laws that apply to residential buildings. It is the job of the block manager to ensure compliance with all applicable laws and to stay up-to-date. Block managers also have to assess fire risks and ensure that fire safety measures are in effect.
Accounts And Support Services
A block management company will not only manage building maintenance but also collect all service charges from leaseholders. They will also pay contractors and manage budget. They will also need to ensure that all accounting records are up-to-date and legal compliant, and that annual accounts are correctly prepared and submitted.
What is the Alternative to Block Management?
Although property owners may be able to work together to manage their buildings, this can lead to problems. When neighbors need to discuss financial matters, relationships can be tested. Residents may not have the skills necessary to maintain a building and comply with all applicable regulations.
We Can Help
Get in touch today with any block management questions or to discuss Lovett&Co. Estate Agents potential assistance in managing your building.