Residential block management plays a critical role in maintaining apartment buildings and multi-unit properties, ensuring they are well-kept, compliant with regulations, and comfortable for residents.
The number of households in England and Wales that live in flats has risen significantly over the last decade, reaching 5.4 million in 2021. With such a large and growing proportion of the population relying on shared living spaces, effective block management is essential.
For property owners and Resident Management Companies (RMCs), navigating the complexities of managing residential blocks often necessitates the expertise of a professional block management company.
What is block management?
Block management, sometimes referred to as property block management, involves the administration and upkeep of purpose-built or converted blocks of flats. This service includes taking care of communal areas, ensuring essential systems like lighting and elevators are working efficiently, and keeping the property’s infrastructure in good condition.
The primary purpose of residential block management is to create a safe, clean, and pleasant environment for residents while protecting and/or enhancing the property’s value for its owners.
How does block management differ from property management?
Block management and property management share similarities but are distinct in their focus and scope. While all block managers may have expertise in property management, predominantly leasehold, not all property managers specialise in the intricacies of block management if they concentrate on solely non-leasehold properties .
Block management deals specifically with overseeing and maintaining buildings that house multiple units, such as flats or apartment complexes. In contrast, property management encompasses a broader range of property types, including single-unit residences, commercial properties, and mixed-use buildings.
Managing a block typically involves handling shared spaces, coordinating repairs, managing finances, and ensuring compliance with legal and safety regulations. Block management is often more complex than property management because it involves these additional services and requires balancing the needs of multiple parties, such as property owners, RMCs, and leasehold bresidents.
Who is block management for?
Block management services are designed for RMCs, property owners, leaseholders, developers, and landlords involved in the management of residential blocks or apartment complexes.
For example, Resident Management Companies (RMCs) often engage these services to streamline the management of communal responsibilities. Property owners benefit from the expertise and time savings provided by professional block managers, while leaseholders rely on these services to maintain their living environment. Developers also find value in delegating operational tasks to experienced block management professionals, allowing them to focus on their core activities.
The role and responsibilities of a block manager
A block manager, or block managing agent, acts as the central point of contact for all operational aspects of a residential block. Their primary responsibility is to represent the interests of property owners or RMCs while addressing the needs of residents. Block managers oversee day-to-day operations, manage budgets, coordinate maintenance tasks, handle communications, mediate resident disputes, and ensure that the property complies with relevant regulations.
Key services in residential block management
A reputable block management company provides a comprehensive range of services to ensure the smooth operation of residential blocks. These services are designed to address all aspects of managing the property, from facilities maintenance to legal compliance and financial management. Key services typically include:
Property management and maintenance
Property Management and Property Maintenance involves the regular upkeep of communal areas such as hallways, gardens, and parking spaces. This service ensures that shared spaces are clean, safe, and aesthetically pleasing. Regular inspections and maintenance contracts are an integral part of this process.
Emergency Repairs
Whether it’s plumbing, electrical issues, or structural concerns, coordinating emergency repairs and responses ensures urgent problems are resolved quickly to minimise disruption. This is often provided through a 24/7 emergency call-out service.
Insurance
Some block management companies are able to arrange insurance cover for risks such as block building, public liability, and directors and officers. By taking on these responsibilities and handling claims, block managers reduce the administrative burden on clients and ensure appropriate and comprehensive coverage is in place to protect all stakeholders. This proactive approach helps safeguard the property against potential risks while simplifying the insurance process for clients.
Health and Safety Compliance
Health and Safety Compliance involves conducting risk assessments and ensuring that communal areas meet fire safety and emergency lighting standards. Compliance with health and safety regulations is a legal requirement and a priority for anyone responsible for managing a block of flats.
Financial Management
Financial Management can include the preparation of budgets, the collection of rents and service charges, and the maintenance of transparent financial records. By efficiently managing finances, block managers ensure that all necessary services are funded and executed without unnecessary costs.
Funds are also managed to factor in emergency budgets, ensuring that unexpected expenses can be covered without delay. Transparency in financial dealings is maintained to reassure residents and clients that service charges are used appropriately and equitably.
Communication and Dispute Resolution
Communication and Dispute Resolution is an essential service, as block managers act as intermediaries between property owners and residents. Whether it’s addressing noise complaints or resolving parking disputes, effective communication fosters positive relationships within the block.
Project Management
Project Management covers professional oversight of significant works such as large-scale renovations, roof repairs, or external redecoration. Block managers oversee these projects, from tendering and contractor selection to ensuring quality control and timely completion. However, should this be outside their expertise, a Chartered Surveyor should be considered.
Regulations in residential block management
The block management industry in England and Wales is not explicitly regulated, but there are industry associations and regulations that apply.
The Property Institute (TPI), formed by the merger of The Association of Residential Managing Agents (ARMA) and The Institute of Residential Property Management (IRPM), is the leading professional body that represents residential managing agents. This trade body sets industry standards for companies involved in private residential property management to ensure homes are managed competently, safely, and ethically. While TPI membership is optional, it indicates that a company adheres to high professional standards and best practices, offering reassurance to property owners and residents.
There are various regulations that apply to block management companies. Fire safety compliance, for example, is a crucial legal requirement under health and safety legislation, including the Regulatory Reform (Fire Safety) Order 2005. Block management companies must also comply with the Management of Health and Safety at Work Regulations 1999 to ensure a safe environment for residents. Additionally, building and property regulations, such as local building codes, planning permission requirements, conservation laws, and energy efficiency standards, are integral to block management.
If a block manager provides insurance services, they must also adhere to Financial Services Authority (FSA) regulations to ensure appropriate coverage and compliance.
Benefits of block management
Engaging a professional block management company offers numerous benefits. For property owners, these services help preserve or improve property values by ensuring the block is well-maintained and compliant with regulations. By delegating the complexities of managing communal spaces, property owners save valuable time and benefit from reduced legal risks associated with regulatory compliance. Moreover, professional management provides peace of mind, knowing that the property is in capable hands. Enhanced resident satisfaction through better maintenance and communication can also improve retention rates, adding long-term value.
Residents also benefit from quality block management services. These include improved maintenance standards, ensuring a safe, clean, and comfortable living environment. Efficient communication channels mean residents are better informed and supported, while faster response times to maintenance issues contribute to a more positive living experience. By fostering harmony and ensuring transparency, block management companies create an environment where residents can enjoy their homes to the fullest.
Block management fees
Fees for block management services vary based on the size and complexity of the block. Many companies charge a percentage of the service charge, which can sometimes lead to conflicts of interest. Red Brick Management takes a different approach by offering a fixed yearly management fee. This transparent pricing model eliminates any incentive to inflate service charges, ensuring fairness for clients.
Red Brick Management also provides rolling contracts with notice periods as short as one to three months. Unlike competitors that lock clients into long-term agreements, Red Brick Management’s approach prioritises flexibility and client satisfaction.
How to choose the best block management company
Choosing the right block management company is crucial to ensuring the smooth operation and upkeep of a residential block. The best companies are those with extensive experience, a strong reputation for professionalism, and a commitment to transparency. A proven track record, recognised industry qualifications, and clear, straightforward pricing structures are all indicators of a reliable service provider.
Equally important is the ability to offer comprehensive support. This includes round-the-clock emergency assistance, adequate professional indemnity insurance, and a team of well-trained, qualified staff. Membership in professional organisations such as TPI further demonstrates a company’s dedication to maintaining high standards and adhering to industry best practices. Red Brick Management exemplifies these qualities, providing tailored, client-focused services that address the specific needs of each block they manage.
Red Brick Management meets all these criteria and offers bespoke, client-focused services tailored to the unique needs of each block.
