Using a property manager

They act on behalf of the landlord (freeholder), a residents’ management company (RMC), a right to manage (RTM) company or residents who own a share of the freehold.

RMCs and RTM companies often delegate tasks to a property manager.

Common tasks a property manager can do include:

• preparing service charge budgets and collecting service charges
• arranging accounts, financial reports and reserve fund plans
• organising repairs, maintenance and improvement works
• getting quotes and managing contractors
• dealing with enquiries from leaseholders and residents
• helping with insurance issues
• supporting board meetings and reporting on key issues
• record keeping
• ensuring the building complies with the leases, health and safety law, fire safety duties and other legal requirements
• dealing with arrears and lease breaches, where authorised

What a property manager does will depend on the management agreement.

Using a property manager reduces the work for volunteer directors of RTM companies and RMCs. They can bring in specialist knowledge and can make decision making more impartial.

To select the right property manager, start by deciding what you need them to do. Then look for property managers who have experience with buildings like yours.

1. Write a short list of the services you want.
2. Ask other blocks or leaseholders for recommendations.
3. Search online for suitable property managers. Send an email inviting companies to tender using our template letter.
4. Check the company’s website for experience, professional memberships and the complaints process.
5. Meet possible property managers before asking for a formal quote. Give each the same information, such as the leases, recent accounts, current contracts, arrears and known problems.
6. Compare quotes carefully before choosing a manager.

Checking insurance and memberships

Before appointing a manager, check that they:

• have relevant insurance, including client money protection or insurance against fraud
• are a member of a redress scheme (if required)

You may also want to check if they are a member of a professional body such as RICS, The Property Institute (TPI) or the Association of Retirement Housing Managers (ARHM).

Management agreement

It’s important to use a written management agreement. It should explain the services, fees, reporting, spending limits, complaint handling, notice period and what documents must be handed over when the agreement ends.

A property manager should have clear instructions and clear limits. The board should agree these before they start work. They should cover:

• what the property manager can decide without board approval
• how much the property manager can spend without permission
• who gives instructions to the property manager
• who receives reports from the property manager
• how quickly the property manager should respond to residents and the board
• how residents should raise questions or complaints
• how often meetings and inspections will take place
• what records the property manager must keep and share

The property manager should normally report to the board, not to every individual leaseholder. The board can nominate one director as the main contact between meetings.

Board decisions and instructions should be recorded in meeting minutes. The property manager should not be asked to do anything that would breach the leases, the law or an approved code of practice.

Property managers must work within the laws and regulations related to leasehold, landlords and tenants, health and safety, fire safety and building safety.

Right to manage (RTM) companies, residents’ management company (RMCs), and share of freehold companies are also covered by company law.

In England, the RICS (Royal Institution of Chartered Surveyors) Service Charge Residential Management Code sets out good practice for managing residential leasehold property and service charges. The latest edition applies from 7 April 2026. Courts and tribunals may take an approved code into account when considering disputes.

A property manager should also have a clear complaints process. In England, letting and managing agents must belong to a government-approved redress scheme. If a property manager belongs to a professional body, they may also have to follow that body’s standards and rules.

The RMC, RTM company or landlord should still monitor the property manager’s work. Appointing a property manager does not remove the board’s responsibility for making decisions, setting policy and checking that the building is being managed properly.

If you are unhappy with your current property manager and decide to change, check the contract and plan the handover. This can avoid problems with accounts, repairs, records and communication with residents.

• Check the notice period and how notice must be served.
• Choose an end date that works with the service charge year, if possible.
• Check whether the service charge account is in credit or deficit.
• Ask for a clear arrears position.
• Confirm whether any management fees are unpaid or disputed.
• List the documents, accounts, contracts, keys and records that must be handed over.
• Agree what final accounting statement is needed and whether an accountant should check it.
• Tell any new property manager about known problems before they agree to take over.

A new property manager may help with the handover, but they may charge extra if the transfer is complex. The board should be open about any problems so the new property manager can price the work and plan properly.