May
29
2015

Do I Need a Management Company?

Block management companies are responsible for myriad issues and management tasks associated with both residential and commercial building groups. These companies should be able to take care of the necessary, financial reporting and recording, health assessment compliance, fire risk assessment compliance, and more. A great block management company will have a locally based person or team to ensure that any problems concerning the properties are taken care of in an immediate and time-sensitive manner. A regular on-site presence is also optimal for best practices. This also aids in fostering a productive and trustworthy relationship between management company and clients.

Statutory compliance is an integral part of any property management endeavor. The responsibilities involved with statutory compliance may vary from property to property, however, some regulations stay the same. Statutory compliance as it relates to property management is defined as remaining in compliance (or respecting and adhering to) the set up rules and laws concerning the issue at hand. This group of managers should be able to work with independent freeholders, other property management companies, house builders, and other kinds of residential landlords. Each one of those managerial positions comes with different responsibilities and sets of problems. A block management company should be willing and able to do the following: 

  • Prepare and administer rent and service fees and charges
  • Provide accounting, such as annual reports of income and expenditures
  • Maintain adequate insurance policies
  • Inspect common areas and other parts of the properties
  • Prepare and provide service charge budgets on an annual or quarterly basis.

There are a few concerns to consider when searching for block management companies. One is finding a company that understands what kind of property they will be managing. Seek out managers who have previous experience in the specific type of property— whether it is commercial, corporate, or residential. What kind of recognition, awards, and certifications have they earned? Are they recognised by the National Association of Estate Agents (NAEA) or the Association of Residential Letting Agents (ARLA)? Are they considered a Safe Agent? And have they been given an approval code from the Trading Standards commission of the United Kingdom? The Property Ombudsmen is another professional group that recognizes management companies with accreditation. Also, when interviewing prospective managers or management companies, make sure that they understand the individual needs and responsibilities of this block specially. Is it historical? Modern? Are there quirks or idiosyncrasies that the company should be aware of? Finally, does this company offer rates that fit your own budget and financial goals? Are their rates compatible with your own? Do a little research on the company and make sure that the kinds of properties that they previously or currently manage are similar to yours or that they have the capabilities to branch out. 

Block managing can be much more complicated than managing one building or kind of property. Block management companies are there to alleviate having to deal with the day-to-day issues of property management. These professionals keep up to date concerning the legislation that affects properties. Hiring a management company means that the property holder can focus on the bigger picture and make broader decisions that require more attention. 

About the Author: