Why It Pays to Have a Draft Block Service Budget

When it comes to block management in London, not all property management companies are created equal. Hidden fees, vague service costs, and rigid contracts have unfortunately become the norm. That’s why we do things differently. At our North London-based block management company, we provide all potential clients with a detailed draft annual service charge budget before you commit. It’s our way of saying: no surprises, no blindfolds – just transparent, honest management from the outset.

A service charge is the contribution leaseholders or freeholders make toward the day-to-day running costs of a residential development. These charges cover everything from building insurance and communal maintenance to gardening, repairs, and the services of your Managing Agent.

Every penny collected is placed into a ringfenced client account, used solely for the upkeep and improvement of your property. We pay third-party contractors from this account as needed, and as your Managing Agent, we charge a clear, fixed management fee – nothing hidden, nothing creeping in later.

Creating a realistic and transparent draft budget before you sign up allows you to:

• See exactly where your money is going
• Understand the level of service you’ll be receiving
• Plan ahead with no nasty surprises
• Evaluate whether the costs and services align with your expectations

Unfortunately, many block management companies skip this step. They may lock clients into long contracts without ever disclosing true costs, or lure you in with artificially low service charges only to bump up fees later. That’s not how we operate.

We start by carefully reviewing each service line – buildings insurance, maintenance schedules, cleaning contracts, gardening needs, and any required reserve funds. If your development is new-build, we work closely with the lease and proposed service framework to ensure the budget is accurate from day one.

We regularly retender contracts and assess market rates, so your development receives high-quality services at fair prices. Our budgets reflect the actual cost of keeping your property in excellent shape – not just this year, but for the long-term too.

In the world of block management, cost-cutting can be a dangerous game.

Managing Agents who drastically undercut budgets may be doing one (or more) of the following:

• Reducing service levels, meaning poorer upkeep
• Underestimating costs and issuing backdated charges later
• Omitting crucial reserve funds, leaving you unprepared for major works

We believe in future-proofing your building, not just patching things up. That’s why our draft budgets include adequate reserve provisions for things like roof repairs, lift replacements, or redecoration of communal spaces – as specified in your lease.

Before you sign anything, we’ll provide you with a clear, well-researched draft service budget. You’ll know what to expect, how your property will be managed, and where every pound is going. It’s one of the many reasons why residents across North London trust us with their homes, and why transparency is the foundation of everything we do. Thinking of switching Managing Agents? Let’s talk. We’ll send you a no-obligation draft budget tailored to your block, so you can make an informed decision, with your eyes wide open.