What is Block Management and is There an Alternative to It?
Block management is becoming an increasingly popular kind of service recently, mostly because of the growing number of apartment blocks in city spaces. Of course, with that comes the block management services that charge you for taking care of the details surrounding that kind of work.
What is Block Management?
Block management is the practice of managing a residential block of flats, one where the individual properties are under various owners, freehold or shared. The job involves the maintenance of the building infrastructure, as well as shared spaces and dealing with financial details, insurance and the administrative side of things. The block managers are also responsible for the legal side of things. The management of residential blocks is something different from property management.
What are the Services Provided by a Block Managing Agent?
In some cases, freeholders tend to choose to manage the building alone. The more common solution is to hire a professional block management company for maintenance purposes. A company like that provides the following:
- Managing Your Service
Block management companies are made to look after the building and to maintain its communal areas. This may include something as simple as maintaining the gardens or even fixing a roof or a broken lift. Block managers on the other hand can ensure the contractors will carry on with the work, and they will be there to keep its standards high. There should be at least two quotes per job, with block managers needing to be transparent about the way the service charges are spent. Block management companies are also supposed to provide a 24-hour response to emergencies.
- Handling Insurance and Claims
Freeholders have to focus on insurance policies, specifically liability insurance, contents and buildings. The block management company will work to ensure your building is covered, with all insurance claims dealt with if the need arises.
- Visiting the Site
Block management companies are also responsible for visiting the building and ensuring the communal areas are kept intact and also compliant with the local safety regulations.
- Legal Compliance
Block managers are also involved in the legal side of things. They must understand and know lease terms, who may be different between flats. They must also be ready to enforce these terms. This is also important for safety and health laws that concern residential buildings as well. Block managers are involved in keeping up to date with the laws and ensuring the building stays compliant. Block managers are also there to look for fire risk assessment and keep fire safety measures intact and in place.
- Handling Accounts and Support Services
Aside from the usual building maintenance angle, block management companies will also take on the administrative side of things, collecting service charges from the leaseholders. They also work on paying contractors and managing your budget. They also ensure that the accounting is kept updated and legally compliant. The records and annual accounts are prepared accordingly and submitted the right way.
Is There an Alternative to Block Management?
There are ways for property owners to stick together and manage the buildings together, but this is something that has a lot more difficulty and problems tied up in the process. When neighbours living in the same building end up having to talk about financial issues, the residents may lack the skill and experience to keep things professional. They may also lack the knowledge to deal with legal complaints and the regulations tied to that.
For these reasons and more, using block management is the more practical option you can go for.
