Self-management: here’s the biggest contributing factors to RMCs turning to a managing agent

Recently, here at Block Management UK Ltd we’ve seen a flurry of self-managing properties enquiring about our services.?I’ve signed up four self-managing properties myself over the last couple of months and there are similarities in terms of the issues that lead each site to hire us to take on the management.??

Below I detail some of the common factors that drive self-managers to seek our help, plus the number one factor that contributes to Directors finally making the decision to switch.??

Reasons to try self-management?

Many RMC Directors have excellent reasons for trying their hand at self-management. Often, it’s because they have had a less than optimal experience (or several) with the previous managing agent. The Directors may feel that they could have sourced better contractors or speeded up the paperwork. And a Google search shows that there is plenty of leasehold advice available.?Leasehold management software is also available and can help with the scheduling of work and keeping up to date on some routine tasks.??

Qualities of successful self-managers?

The reasons to try self-management are not the factors that will see you continue to self-manage. You may be able to find cheaper suppliers or post your accounts on time each year. However, the ongoing demands of dealing with other residents/stakeholders, keeping abreast of the law and keeping rigorous admin, are continual pressures.?

However, the arguable pleasure and freedom of hiring or firing a gardener is a fleeting advantage in the life of a self-manager compared to the ongoing demands of dealing with other residents/stakeholders. That pleasure is overshadowed by a hundred and one other duties. And successful self-managers must like doing unpaid admin, have a head for numbers and the law and have a thick skin.??

Self-management common issues?

Most self-managers we meet are conscientious, hard-working homeowners. But their properties often fall down in very similar departments and the more common problems that self-managers find difficult to overcome are:??

• Inadequate/out of date health and safety or fire risk inspections?
• In-fighting between directors and residents?
• No long term planned maintenance?
• Overall problems with financial management and ensuring good accounting practices?
• Erroneous service charge budgets and apportionments?
• Problems collecting service charges / debt collection?
• Little or no legislative expertise?
• Rogue directors managing to their advantage?
• Uninsured contractors?

In addition, directors' lives change, too, and they find themselves unable to commit as much as they did.??

And the biggest contributing factor to self-management woes??

It’s property size. I have found that when the property is above twenty units (flats, houses or a combination) the admin work of stakeholder management becomes too onerous for the unpaid, often-unsupported Director. And it's not just juggling a large number of fellow residents but the stress of dealing with upkeep of plant machinery such as lifts, as well as complicated parking issues and sizable maintenance works and budgets.?

Fiona Ducasse is Business Development Manager at Block Management UK Ltd

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