Block management or property management?
Whether it’s called property, block estate or leaseholder management – they are all a type of service.
Block management is when a third party is appointed to oversee the communal areas within a residential building, set of properties or a block.
Block management services include recovering annual service charge monies, sometimes ground rents, obtaining buildings insurance and the general compliance and maintenance of the building.
Some are also responsible for generating income for the property owners in the form of rent this would be considered a full “wrap-around” lettings and management service.
The property owners will either typically pay a percentage of their gross rent received for the lettings and management of their unit or separately pay a fixed annual fee for the block management normally remitted quarterly.
What is a block management agency responsible for?
In short, block management is just that: management. Covering many areas, including:
Landscaping and external servicing
Arranging maintenance and repairs
Preparing and adhering to budgets
They are also tasked with managing expectations between leaseholders and freeholders, ensuring the best value for money with the fees they charge.
Who needs block management?
Owners of investment properties often use third party block management companies as a means to free up time and focus on their portfolio.
Landlords who have large portfolios lack time and often don’t have the resources to manage individual tenants or handle the large volume of upkeep involved with property. Many landlords who wish to increase profits will use property management companies to do this.
As well as saving time and increasing investment returns, property owners can expect certain traits from a good block management company.
What to expect from a block management company?
- They understand lease structure and the tenant process
- They stay up-to-date on relevant legislation for Landlords and Tenants
- Help understand what your rights and obligations are as a landlord
- Committed to best practice and professionalism
- Excellent customer service
- Ensuring best practices in policy
- Evolving and updating internal processes based on current research and guidance
- Open to feedback and scrutiny
- Provide you full accounting facilities for budgeting, service charge and year-end accounting with access to this information
- Support for leaseholders and how fees are spent
- Open about connections with other service providers, how their buildings are performing, and updating you with newsletters.
Urban Evolution strives to deliver these solutions to our clients, if you’d like to know more about block management or how our service could improve your current portfolio, get in touch today!