Understanding the Options: Self-Manage, Hire a Managing Agent, or Pay-As-You-Go

• When considering how to manage a property, you generally have three options: self-manage, hire a managing agent, or choose a pay-as-you-go management package. Each has its own set of benefits and risks. Self-managing is often chosen to cut costs, while hiring a managing agent can offer expertise and support, especially for larger properties.

The Rise of Reputable Managing Agents

• Choosing a reputable managing agent should be becoming easier as the Association of Residential Managing Agents (ARMA) reports a significant increase in membership. Larger firms provide robust systems and processes, including credit control, dispute resolution, and access to specialist services like engineering teams. However, smaller firms may offer a more personalized, responsive approach.

Risks of Self-Managing a Property

• Self-managing can be a rewarding option, but it comes with significant challenges. Without the proper legal or financial background, managing the day-to-day tasks like financial oversight, credit control, contractor relations, and maintenance can quickly become overwhelming. The "unsung hero syndrome" often emerges when one person bears the brunt of the responsibilities, leading to frustration and burnout.

Skills and Knowledge Needed for Effective Self-Management

• To effectively self-manage, a range of skills are required, including legal knowledge (for running meetings, issuing share certificates, interpreting leases), financial management (for maintaining accurate ledgers, managing service charges), and credit control. Also, it’s essential to have knowledge of County Courts and Leasehold Valuation Tribunals to manage non-payment issues effectively.

Challenges with Day-to-Day Maintenance and Legal Compliance

• Maintaining quality day-to-day services and ensuring compliance with health and safety regulations can be difficult without expert knowledge. Issues like fire risk assessments, asbestos audits, and 24-hour emergency cover require ongoing attention and may be too complex for volunteers to handle effectively. Self-managing also comes with the burden of ensuring legal compliance, which is ever-evolving.

Alternatives: Support Packages for Self-Managing Leaseholders

• For those who want to self-manage but need occasional support, new services offer a balance. These packages handle the financial administration, legal compliance, and service charge collection, leaving lessees with the flexibility to focus on strategic decisions. These services typically cater to smaller blocks (up to 12 flats) and provide legal compliance, service charge account preparation, and other essential services, all for a budget-friendly fee.