A Complete Guide to Block Management in 2025

If you’re a leaseholder, freeholder, or director of a Residents’ Management Company (RMC), chances are you’ve heard the term block management. But what exactly does it involve? And how do you know if your property is being managed properly?

In this complete guide, we’ll walk you through everything you need to know about block management — from what it includes, how it works, who’s responsible, and how to choose the right managing agent.

What Is Block Management?

Block management refers to the day-to-day and long-term management of the communal areas and shared responsibilities in a residential building. This typically applies to:

  • Blocks of flats
  • Purpose-built developments
  • Converted houses with multiple leaseholders
  • Mixed-use developments (residential and commercial)

Also known as residential property management, it covers everything from maintenance and repairs to service charge collection, legal compliance, and resident communication.

The goal? To ensure the building is safe, well-maintained, and operating smoothly — all while protecting the value of the property.

Who Is Responsible for Block Management?

Responsibility for block management usually falls into one of three categories:

1. The Freeholder / Landlord

In many buildings, the freeholder is legally responsible for maintaining common areas and ensuring the building is compliant with regulations. They often hire a managing agent to carry this out.

2. Residents’ Management Company (RMC)

In some developments, leaseholders form a company to take over management responsibilities from the freeholder. The RMC is run by elected directors — usually volunteer residents — who appoint a block management company to handle day-to-day operations.

3. Right to Manage (RTM) Company

This is when leaseholders take over management rights from the freeholder through the legal Right to Manage process. The RTM company then becomes responsible for appointing and overseeing a block management provider.

What Does a Block Management Company Do?

A professional block management company acts on behalf of the freeholder, RMC, or RTM to manage shared responsibilities in the building. Their services typically include:

🔧 Repairs & Maintenance

  • Arranging for regular cleaning, gardening, and minor repairs
  • Managing contractors for larger works (roofing, lifts, external redecorations)
  • Organising annual maintenance schedules

💷 Service Charge Management

  • Preparing annual budgets
  • Issuing service charge demands
  • Collecting payments
  • Producing year-end accounts
  • Advising on reserve funds for future major works

📜 Legal & Regulatory Compliance

  • Ensuring the building meets fire, health & safety, and electrical regulations
  • Arranging mandatory assessments (e.g. Fire Risk Assessments, Asbestos Surveys)
  • Advising directors on legal obligations under the lease and relevant legislation

🏢 Building Insurance

  • Sourcing and managing buildings insurance
  • Handling insurance claims
  • Ensuring adequate coverage across communal areas

🧾 Company Secretarial & Admin

  • Organising AGMs and board meetings
  • Filing annual returns and accounts (for RMCs or RTMs)
  • Managing leaseholder records and communication

📞 Resident Communication & Support

  • Acting as the main point of contact for leaseholders
  • Logging and resolving issues
  • Keeping residents updated on building matters

What’s NOT Included in Block Management?

It’s important to note that block management focuses on shared, communal responsibilities. It does not include:

  • Individual flat maintenance (plumbing, appliances, interior decor)
  • Tenant management (lettings, rent collection) — that’s lettings management
  • Property sales or conveyancing

That said, some block management firms also offer lettings or estate agency services — so it’s worth asking.

What Makes a Good Block Management Company?

Not all managing agents are created equal. A good block management company should:

  • Be transparent about costs
  • Respond quickly to issues
  • Offer proactive solutions
  • Communicate clearly with residents and directors
  • Stay on top of compliance
  • Have strong local knowledge and vetted contractors
  • Use modern systems for issue tracking and finances

Red flags include poor communication, unexplained cost increases, unvetted contractors, and slow response times.

How Much Does Block Management Cost?

Fees vary depending on the size and complexity of the block, but typical block management charges include:

  • Management Fee: A flat annual or per-unit fee for ongoing services
  • Service Charges: These are paid by leaseholders and cover communal costs
  • Extra Fees: May apply for major works, insurance claims, company secretary services, or out-of-hours support

Some companies offer all-inclusive packages, while others may charge separately for each service. Make sure you get a detailed breakdown before signing up.

How Are Service Charges Calculated?

The managing agent prepares a budget each year estimating the costs of:

  • Cleaning and gardening
  • General maintenance
  • Utilities (for communal areas)
  • Building insurance
  • Health and safety compliance
  • Reserve fund contributions

These are then divided among leaseholders based on their lease terms — usually as a percentage or based on the size of their flat.

At the end of the year, actual expenses are compared against the budget, and any surplus or shortfall is adjusted accordingly.

What Is a Reserve Fund?

Also called a sinking fund, this is money set aside each year to pay for future major works like:

  • Roof replacement
  • External painting
  • Lift upgrades
  • Structural repairs

A healthy reserve fund helps prevent large, unexpected bills and keeps the building in good condition long term.

Common Block Management Problems

Even in well-managed buildings, issues can arise. Some common complaints include:

  • Delayed repairs or poor maintenance
  • Unclear or inflated service charges
  • Lack of transparency on spending
  • Poor communication from managing agents
  • Non-compliance with legal duties
  • Unresponsive to resident concerns

If you’re experiencing these, it may be time to review your current provider — or switch managing agents altogether.

How to Choose a Block Management Company

Here’s a quick checklist when looking for a new block management provider:

✅ Do they specialise in blocks of your size and type?
✅ Are they local and familiar with your area?
✅ Can they provide references or client testimonials?
✅ Do they have clear pricing with no hidden charges?
✅ Are they regulated by a professional body (e.g. ARMA, IRPM, RICS)?
✅ Do they offer an online portal or digital tools?
✅ Are they transparent, proactive, and easy to reach?

Always meet with prospective agents, review their proposal carefully, and ask detailed questions about how they work.

What Is the Role of Leaseholders in Block Management?

Leaseholders have a stake in the building’s upkeep — after all, their home (and its value) is directly affected by how well it’s managed.

Their responsibilities typically include:

  • Paying service charges on time
  • Reporting maintenance issues
  • Following lease terms and building rules
  • Attending AGMs (if invited)
  • Participating in management if part of an RMC or RTM

Some leaseholders become directors of their RMC or RTM, giving them more control over who is appointed to manage the block.

Can Leaseholders Change Their Block Management Company?

Yes — and in many cases, they should if they’re unhappy.

If you’re part of an RMC or RTM, the process is fairly simple:

  1. Review your current managing agent’s contract and notice period
  2. Gather feedback from residents
  3. Shortlist new agents
  4. Vote at a board meeting to appoint a new provider
  5. Oversee a structured handover process

If your building is managed by the freeholder, leaseholders can take over management using the Right to Manage process — a legal route that gives you the right to appoint your own agent.

Benefits of Good Block Management

  • Clean, well-maintained communal areas
  • Lower long-term maintenance costs
  • Reduced legal risk and full compliance
  • Better communication and resident satisfaction
  • Improved property values
  • Less stress for directors and leaseholders

Final Thoughts

Block management is one of the most important — yet often overlooked — parts of property ownership. Whether you're a leaseholder in a small converted house or a director in a large modern development, good management makes a world of difference.

It’s about more than fixing broken lights or chasing service charges. It’s about protecting your investment, ensuring compliance, and creating a better place to live.

At Cube Block Management, we pride ourselves on transparency, responsiveness, and local expertise across London and Greater London. Whether you're looking to switch agents or appoint one for the first time, we’re here to help you make it simple.

Want to learn more or get a free block health check?
Contact us today and see how proactive block management can transform your building.

Follow us