The short answer
It depends on the building. Most managing agents charge an annual management fee, usually quoted per flat or as a fixed sum for the building, plus VAT. On top of that there may be separate charges for particular pieces of work.
The best way to know what your building would cost is to ask for written proposals and compare them like for like.
What affects the fee
- The size of the building. The number of flats affects the amount of work, though very small buildings still need the same core tasks done.
- The type of building. A converted house with no lift and no grounds needs less day-to-day attention than a block with lifts, communal heating, car parks and gardens.
- Its condition. A building with a backlog of repairs, unclear records or high arrears needs more work, especially in the first year.
- The services you want. Full management costs more than help with service charges only.
- Who the client is. RMC and RTM companies may want company secretarial support and board meetings, which take time.
- How often you want visits. More frequent inspections and meetings mean more time.
What should be included
A typical annual management fee covers the core day-to-day work, such as:
- preparing the service charge budget and issuing demands;
- collecting payments and chasing arrears;
- holding funds in a client account;
- arranging and supervising regular contractors;
- handling routine repairs;
- regular inspections of the common parts;
- coordinating insurance and compliance; and
- communicating with directors and leaseholders.
What's often charged separately
Many agents charge extra for some or all of the following, so ask about each one:
- managing major works and Section 20 consultation;
- company secretarial services for RMC or RTM companies;
- attending extra meetings or AGMs;
- handling insurance claims;
- out-of-hours emergency cover;
- answering enquiries when flats are sold; and
- dealing with persistent arrears or legal action.
How to compare proposals
- List what's included. Put each proposal's inclusions side by side.
- List the extras. Note what each agent charges separately and how.
- Check the term and notice period. A low fee tied into a long fixed term may not be the bargain it looks.
- Ask how they report. How will directors see the finances, approve spending and follow repairs?
- Ask about the handover. Who will deal with the outgoing agent?
How we set our fees
We look at your building first, then send a written proposal with a clear annual management fee and what it covers, so you know the cost before you decide. Every building we manage gets the Harrison Services Portal, where directors and residents can see where things stand.
This guide is general information about residential block management in England, not legal advice. Your lease and your building's circumstances matter, so take advice on your specific situation.