Property Landlord advice: Block Management and Letting Agents. (Part 1)

By Steve Roulstone

Henley Grange Halesowen.

Over the years of running a Letting Agency, several different opportunities come to light and most Agencies do at some stage along the way, get the opportunity to advice or run a Block Management Company. This is exactly what happened to my Company and we now look after a total of 14 sites throughout the Franchise area of Staffordshire.

Block Management explained.

For those in the know, this is well understood, but if you have never had anything to do with what are mainly leasehold properties, or lived in a location where there are shared facilities, it may not be so obvious, so let me explain: In simplistic terms, Block Management Companies are set up to oversee the running of Leasehold properties such as apartment blocks (nowadays nearly always with Freehold properties attached, because of Planning authorities insisting on new sites having a cross section of affordable as well as ‘Executive’ type housing) appointing and therefore paying for such services as Cleaners and Gardeners, organising insurance cover and also giving a platform for all who live within the site to comment or even assist in the day to day running by standing as a site Director. Companies such as ours carry out the collecting and payment of services rendered and stands as Company Secretary to carry out the formal running of the site in line with any and all legal requirements and are appointed by the Directors.

Why Letting Agents?

What normally happens is one of our Landlords will get frustrated at the lack of contact or accountability of the existing Managing agent (Professional appointed body) and ask if we can assist. This is how we started and all of our business has come about through recommendation since that first site in 2003. This is because as Companies, Letting Agents are set up to operate in a very similar way and of course we can soon adjust our services to take Block Management on board.

Training and Professional standing.

Within Castle Estates, we offer training for all of our offices whenever opportunity presents itself, this is to ensure that the training is given when it is needed and therefore better utilised by the offices and the customer of course benefits as well from up to date information. Our professional bodies also recognise the services we give as Block Management Agents but there is a separate body ARMA Association of Residential Managing Agents (as opposed to ARLA) which it is wise to apply to join when numbers of sites increase. In our case, when we developed to the stage of having a separate division within the Company, just for Block Management.

So what advantages to the customer.

The normal reason and this I am sure is countrywide, is lack of approachability and poor communication that results in  a lack of trust, but of course the disillusioned owners and directors nearly always look to their own locality for a solution. And this is exactly why so many Letting Agents come to look after so many local sites. This is exactly what we can offer, accountability and easy simple approachability and communication. OK there are people who do not communicate well no matter where they are located, so I guess that is my hint to anybody taking over a local site because of problems with the existing agents – communicate with your new customers. We do and have shown considerable growth because of it!