Management of large/complex blocks

With so much legislation underpinning modern-day block management, even the smallest developments are being increasingly managed by professional leasehold management specialists.

As buildings and sites get bigger, more often than not so does the complexity…….and advances in technology and the move towards greener buildings merely adds to this.

Gone are the days when the most complicated technology on a site would be the entry system and lifts…..In the 2020’s, large sites can include items such as communal heat networks, CCTV, electric gates, EV chargers, solar panels, extensive fire systems, gyms, swimming pools, communal water tanks, living roofs……and this just scratches the surface.

Also gone are the days when blocks could be managed off spreadsheets; 21st century block management is far more transparent and any good block manager should have systems to be able to allow residents to engage with the managing agent and fundamentally see what they are getting for their management fee !

With large developments also comes a more complicated accounting structure. The managing agent must have systems that can ensure that service charges are calculated accurately and adhere to the often multiple schedules defined in the various leases relating to a site. It’s important that any agent managing large sites employs service charge accountants, not financial administrators as many agents do. A good service charge accountant will understand management accounting to a high level but will also be able to understand the subtle differences between service charge accounting and management accounting as defined by company law.

Finally, post-Grenfell, the management of blocks above 18 metres has become much more involved with respect to fire safety. That said, arguably it is harder to manage developments with buildings under 18 metres as the fire safety order is somewhat more fluid at this level with much of the legislation being subject to interpretation. In large and complex blocks, this can be a minefield.