Block Management

The Service Change is issued on an annual basis and must be paid by the due date shown on the invoice. Because most Management Companies’ financial years are the same as the calendar year, the service charge is issued at the start of the year.

It is in all owners’ interests that all monies in the budget are available, as a shortage of funds means that the Management Company’s (the property owners’) requirements cannot be met, and the complex will suffer, making all properties there less attractive and harder to sell or let.  Many management companies facilitate monthly and quarterly payments. The late payment of service charges can place significant pressure on the management company to provide the services as laid out in the budget.

A proportion of the annual Service Charge is put aside for the replacement of major common-area items,  replacement of carpets, major repairs to fire alarms or lift mechanisms.

The amount will depend on the size of the development and is paid as part of the annual Service Charge.  This Fund is important as it helps to minimise the impact of occasional, high-cost maintenance services.

In order to meet the costs of running the complex, each property owner pays a service charge on an annual basis. A budget is drawn up each year and presented to the Directors of the Management Company.

The total budget amount will have been divided by the number of properties in the complex (sometimes weighted by the varying size or type of properties concerned).

Once the Board of the Management Company approves the budget, it is then charged out to all owners.

An Annual General Meeting is arranged by the Managing Agent, on behalf of the Management Company to review the previous year’s activities, and discuss and agree plans for the following year.

It is important to attend the AGM, as this is the resident’s chance to have a say in the running of the development. All owners are given notice of the time and location of the AGM at least 21 days in advance.

Only owners are entitled to attend the AGM, and those whose accounts are not in arrears are entitled to vote on motions raised. The resolutions agreed are binding on all members so it is important to get involved at least by attending the AGM.

The decisions are made at the Management Company AGM, where the aims and suggestions of the owners for the professional management of the complex are discussed and agreed.

A Board of Directors is elected from the owners, and this Board works with a chosen Managing Agent to have the agreed proposals carried out.