Leaseholders and directors of RMCs often research on the web what are typical block management fees in London.

To put the same question into a practical example of everyday scenarios you could ask the following questions; what is the typical cost of a full service of a car? what is the typical cost for a meal for two.

The block management fees vary across the country. For instance, in Liverpool there are managing agents offering there services for £100 per unit. On the other scale, typical block management fees in London can range from £250 – £700 per unit and higher for some high end exclusive developments which demand a lot more from their agents.

Managing Agents cost

The Managing Agents cost should not be the first the first thing to consider when carrying out a tender for a new managing agent. You need to decide what level of service you require. Items to consider are:

What level of service do we need for our development? Basic service for a small block and more of an composite level of service for medium and large size developments. To give you an example of a scenario we came across. A lovely development of 24 flats in Croydon was receiving a very poor service from the landlords managing agent. They have never been consulted, no residents meetings. It takes two weeks for them to respond after the resident chases them for a response. They showed me the accounts and the managing agents fee was £120 per unit. We explained to the residents that we could not deliver the level of service we would expect our staff to deliver for that price.  Pay a reasonable price, expect a reasonable service.

• How many site visits would be required by the property manager.
• Do you require out of hours service in case of an emergency at the development.
• How many directors meetings are required. It is not compulsory to have directors meetings. With modern day communications a lot can be accomplished by email and telephone.
• Are there AGM’s and company secretarial requirements.
• Are there staff to manage.
• How complex is the site? How many schedules in the accounts.
• How technical is the site, lifts, fire alarms, solar panels, door entry systems, landscaping, automated gates. All these items require time to manage them as well as maintenance costs.

You know what level of service you require. Now read our article about how to.

The best way to find out if the fees you are paying are reasonable for the level of service you are receiving is to carry out a tender for the management.