If you’re a leaseholder, director of a Residents’ Management Company (RMC), or a freeholder, you’ve probably heard the term “block management” a lot, but not always a clear explanation of what it actually covers. Good block management is mostly invisible. When it’s working, the bins are collected, the buildings insurance is in place, the service charge accounts add up, and nobody’s chasing anyone for answers. When it isn’t working, every one of those things becomes a source of frustration.
This guide breaks down what a managing agent is actually responsible for, how service charges and Section 20 consultation work, what good leaseholder communication looks like, and the warning signs that your current management company isn’t pulling its weight.
In this article:
- What a managing agent is responsible for
- Service charges explained in plain English
- Section 20 consultation – what it is and when it applies
- AGMs and leaseholder communication
- Signs your current management is underperforming
- What switching to Hastings Property Services looks like
What Good Block Management Looks Like Day to Day
Good block management is a rhythm, not a rescue mission. It looks like routine site inspections that catch a leaking gutter before it becomes a damp problem three floors down. It looks like insurance renewing on time, contractors turning up when they say they will, and a service charge budget that was set with enough thought that nobody’s surprised by a shortfall in month nine.
Most importantly, it looks like leaseholders knowing what’s happening and why, not finding out about a six-figure roof repair through a legal notice with no warning.
A managing agent’s job is to run all of this so that directors and leaseholders don’t have to.
Section 1: What a Managing Agent Is Responsible For
A block managing agent is appointed usually by the freeholder or the RMC/RTM company to run the day-to-day management of a residential development on behalf of everyone who has a stake in it. The core responsibilities generally fall into four areas.
Service charges and budgeting
The agent sets and collects the annual service charge, prepares the budget, keeps accounts on trust (as required by law), and produces end-of-year statements showing what was actually spent against what was budgeted.
Buildings insurance
Arranging and renewing adequate buildings insurance, making sure the sum insured reflects rebuild cost (not market value), and handling claims when something goes wrong: a burst pipe, a fire, storm damage.
Maintenance and repairs
Routine upkeep of communal areas including cleaning, gardening, lighting, lifts, fire safety equipment plus organising and overseeing larger repair and refurbishment projects, from redecoration to roof replacement.
Compliance
This has become a much bigger part of the job in recent years. It covers fire risk assessments, health and safety at the property, adherence to lease terms, and staying current with the legal obligations that apply to residential blocks including recent changes under building safety legislation for taller or higher-risk buildings.
A good managing agent doesn’t just react to problems in these four areas. They plan for them – budgeting for major works years in advance, scheduling compliance checks before they’re due, and keeping a paper trail that protects the building (and the directors) if anything is ever questioned.
Section 2: Service Charges in Plain English
Service charges are the single biggest source of leaseholder frustration usually not because the charge itself is unreasonable, but because nobody explained what it’s for.
In plain terms, the service charge covers the cost of running and maintaining the shared parts of the building and estate: buildings insurance, communal cleaning and gardening, electricity for shared lighting, lift maintenance, management fees, a contribution to a reserve (sinking) fund for future major works, and day-to-day repairs.
What transparency should actually look like:
- A clear, itemised budget issued before the service charge year starts, broken down by cost category rather than a single lump figure
- Certified year-end accounts showing actual spend against budget, with any surplus or deficit clearly explained
- Access to invoices and supporting documents on request. Leaseholders have a statutory right to inspect these
- A reserve fund with a stated purpose not just money sitting in an account with no plan attached to it
- Advance notice of anything unusual, such as a large repair bill or an insurance premium increase, rather than leaseholders discovering it after the fact
Service charges are recoverable from leaseholders only to the extent that costs are reasonably incurred and, where works are involved, reasonable in standard. That’s a legal test, and it’s one reason transparent record-keeping matters not just for trust, but because it’s what stands up to scrutiny if a charge is ever challenged at the First-tier Tribunal.
Section 3: Section 20 Consultation What It Is and Why It Matters
Section 20 refers to the formal consultation process set out in the Landlord and Tenant Act 1985 (as amended) that a landlord or managing agent must follow before carrying out qualifying works or entering into a qualifying long-term agreement, where the cost to any individual leaseholder would exceed a set threshold.
As things stand, that threshold is:
- £250 per leaseholder for qualifying works (major repairs or improvements)
- £100 per leaseholder per year for qualifying long-term agreements (contracts running longer than 12 months, such as a cleaning or lift maintenance contract)
The Leasehold and Freehold Reform Act 2024 proposes raising these thresholds significantly to around £600 and £300 respectively but as of mid-2026 the government’s response to its 2025 consultation on implementation is still pending, so the current £250/£100 figures remain in force. This is worth flagging to leaseholders directly, since out-of-date advice online often assumes the higher thresholds already apply.
The consultation itself happens in stages: a Notice of Intention describing the proposed works and inviting observations, a second stage after estimates are obtained where leaseholders can comment on the specific contractors proposed, and for larger contracts a final notification of the contractor chosen.
Why it matters: if a landlord fails to consult properly, the amount they can recover from each leaseholder is capped at the relevant threshold (£250 or £100/year), regardless of the actual cost unless the tribunal grants dispensation. For a major roof or cladding project, that can mean the landlord absorbing tens of thousands of pounds in costs that should have been recoverable. Getting Section 20 right isn’t paperwork for its own sake it protects the building’s finances as much as the leaseholders’ rights.
Section 4: AGMs and Leaseholder Communication
Annual General Meetings exist to give leaseholders and directors a formal opportunity to review the year, approve accounts, and raise concerns directly. A good managing agent treats the AGM as the anchor point of a much broader communication effort not the only time leaseholders hear from them.
What good communication looks like in practice:
- Meeting papers sent well in advance, including the agenda, accounts, and any major works updates, so leaseholders can come prepared
- Clear minutes circulated promptly after the meeting, with agreed actions and owners
- A responsive point of contact for day-to-day queries, rather than a generic inbox that goes quiet for weeks
- Proactive updates on anything material: a compliance issue, an insurance claim, a change of contractor rather than leaving leaseholders to ask
- Accessible records, so leaseholders can find past accounts, insurance certificates, and correspondence without a formal request each time
Leaseholders shouldn’t have to chase their managing agent to find out what’s happening with their own building. If AGMs feel like a formality that changes nothing, and gaps between meetings are filled with silence, that’s usually a communication failure rather than a one-off.
Section 5: Signs Your Current Management Is Underperforming
Some warning signs are obvious. Others build up quietly over a year or two until the block is in a worse position than anyone realised. Common signs worth taking seriously:
- Year-end accounts arrive late, or not at all a legal and financial red flag, not just an inconvenience
- Reserve fund has no documented purpose or hasn’t been reviewed against a long-term maintenance plan
- Repairs get reported and then go quiet for weeks with no update on progress
- Section 20 notices are vague or rushed, giving leaseholders little real opportunity to comment
- Insurance renews automatically with no comparison or explanation of premium changes
- AGMs are cancelled, poorly attended, or feel pointless because nothing raised at the last one was actioned
- Communication is one-way leaseholders can email but rarely get a substantive reply
- Compliance checks (fire risk assessments, lift inspections) are overdue and nobody flags it
Any one of these on its own might be a bad month. Several of them together, over a sustained period, usually mean the agent is under-resourced for the number of blocks they’re managing, or the relationship simply isn’t being prioritised.
Section 6: What Switching to Hastings Property Services Looks Like
Switching managing agent is more straightforward than most directors expect, and it doesn’t require the outgoing agent’s cooperation to get started. The process typically involves:
- An initial review of your current lease terms, service charge accounts, and any outstanding compliance or major works issues
- A proposal setting out management fees, scope of service, and a transition plan
- Formal notice to the outgoing agent, handled in line with your management agreement’s notice period
- Handover of records accounts, insurance documents, contractor details, reserve fund position checked and reconciled before day one
- A clear introduction to leaseholders, so residents know who to contact and what’s changing from the outset
Hastings Property Services manages blocks, estates, and mixed-use developments for freeholders, leaseholders, and RMCs handling service charges, insurance, compliance, planned maintenance, and Section 20 consultation as part of day-to-day management, not as an afterthought. As a family-run, locally based team working with local tradespeople, the aim is straightforward: leaseholders who know what’s happening with their building, and directors who aren’t left to chase basic answers.
FAQ
What does a block managing agent actually do?
A managing agent runs the day-to-day management of a residential block on behalf of the freeholder or RMC/RTM company setting and collecting service charges, arranging buildings insurance, organising maintenance and repairs, and keeping the building compliant with fire safety and other legal obligations.
What is Section 20 consultation and when does it apply?
Section 20 is the statutory consultation process required before qualifying works or long-term agreements above set cost thresholds (currently £250 per leaseholder for works, £100 per leaseholder per year for long-term contracts). It gives leaseholders the right to comment on proposed works and contractors before costs are charged.
How often should service charge accounts be issued?
Landlords are required to provide a summary of relevant costs, and best practice is to issue a clear budget before the service charge year begins and certified accounts within six months of the year-end, showing actual spend against budget.
Can leaseholders challenge their service charge?
Yes. Leaseholders can apply to the First-tier Tribunal (Property Chamber) to challenge whether a service charge is reasonable or whether works and services are of a reasonable standard.
How do we switch managing agent if we’re unhappy?
Check the notice period in your management agreement, get a proposal from a new agent, and give formal notice. A competent incoming agent will manage the handover of accounts, insurance, and contractor records as part of onboarding.
Ready to Compare Your Current Management?
If any of the warning signs above sound familiar, it may be time for a second opinion. Request a block management proposal from Hastings Property Services and see what transparent service charges, proper Section 20 handling, and responsive communication actually look like.