The Dirty Little Secrets of ‘Cheap’ Block Management

On the surface, low block management fees can look like a bargain. For leaseholders and freeholders, keeping service charges affordable is always a priority, so when a company advertises heavily discounted rates, it’s tempting to sign on the dotted line. But as many property owners discover, what appears to be a money-saver at first can end up costing far more in the long run. The truth is that some block management companies use low headline fees to win clients, only to introduce hidden charges later. From routine admin to unexpected exit penalties, these costs can quickly add up, leaving residents frustrated and budgets stretched.

A low monthly or annual management fee doesn’t always tell the whole story. Once you’re locked into a contract, additional charges can emerge, such as:

• ‘Admin’ charges for everyday tasks. Issuing statements of account, providing copies of documents, or even responding to resident queries may be billed as extras, even though they should reasonably be part of the core service.
• Financial add-ons. Services like setting up reserve funds, preparing budgets, or producing financial reports may be treated as optional extras, carrying an additional price tag rather than being included in the standard package.
• Exit fees. Some firms impose heavy penalties if you want to switch management companies before the contract ends, making it unnecessarily costly to move on.

In other words, the cheap deal you signed up for can quickly spiral into a rather hefty, far more expensive commitment.

Choosing a transparent block management company means knowing exactly what you’re paying for, without nasty surprises. Transparency matters because it ensures:

• Clear, fixed fees. Your budget is protected when you know the cost upfront.
• Fair, predictable service. No hidden administrative or exit charges mean fewer headaches down the line.
• Better financial planning. Leaseholders can manage costs more effectively when they have clarity on charges month after month.
• Trust and accountability. A company that is open about its fees is far more likely to be reliable in every other aspect of management.

If you’re considering a block management company, don’t be afraid to probe their pricing. A few simple questions can help you avoid unpleasant surprises:

• Are routine admin tasks included in the core fee?
• Can you confirm whether exit fees or penalties apply if we change companies?
• Will you provide a full breakdown of all charges before we sign?

A reputable, transparent company won’t hesitate to give you clear answers.

When it comes to block management, the cheapest option on paper isn’t always the most affordable. Nor the most reliable. Hidden fees can turn a low fee structure into an expensive mistake, while eroding trust between managers and residents.

The smarter choice is to work with a company that values transparency, fairness, and clear communication. That way, everyone involved knows exactly where they stand, finances can be managed confidently, and the focus stays where it belongs: on delivering a safe, well-run, and well-maintained block for all who live there.