Running a right to manage company
Using a managing agent or self-managing
The right to manage company can either do the day-to-day management itself, or use a managing agent.
Choosing to self-manage might work if the building is small and the directors have the experience and time to meet their obligations. Even then, it is worth considering whether using a managing agent may help.
With larger buildings, it’s usually a good idea to appoint an experienced managing agent to do the day-to-day property management.
Managing agents
A managing agent or property manager (sometimes called a block manager) is a person or company appointed to act on behalf of the right to manage board of directors to do the day-to-day management of the building. The agent or manager will usually be employed by a property management company.
There are things you should consider when choosing a managing agent:
- check they’re a member of a recognised professional body, such as the Royal Institution of Chartered Surveyors (RICS) or The Property Institute (TPI)
- check they belong to a redress scheme for handling complaints
- compare fees – these can vary, so it’s best to compare several agents
- compare the expected level of service and consider what you need for your building
- check how many other buildings they manage, and consider how much time they will have for yours
You need to engage the agent under a contract called the management agreement. This will typically last for 1 year, so that you do not need to follow the Section 20 consultation process which applies to contracts lasting more than a year.
Management fees are normally paid quarterly in advance. You may need to pay extra fees for services such as:
- major works consultation under Section 20
- company secretary services
- preparing management packs
- drafting consents to sublet or for alterations
The right to manage company will need to give the managing agent instructions, and make sure they are meeting their responsibilities, but avoid making unreasonable demands. Remember that they have a business to run and must follow certain obligations, such as legal requirements.
Self-managing
If you decide to self-manage you will need to:
- arrange insurance of the building
- appoint contractors for the various services that the landlord has been providing to the block such as gardening, boiler maintenance, caretaking or cleaning
- organise repairs and maintenance, both on a day-to-day basis and for cyclical works such as external or internal redecoration
- manage budgets, service charges and bank accounts – you must have a client account to hold funds on trust for the leaseholders
- Last updated:
- 16 December 2025
- Next review:
- 16 December 2027
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