Block management in Essex typically costs £200 to £400 a flat a year plus VAT for full management, depending on the size of the building and what is included. Our published fee is £240 a flat a year plus VAT, minimum £2,400, so a block of 12 flats is £2,880. It is paid from the service charge and never as a percentage of it.
Most agents will not give a figure until they have seen the building. We think a board should be able to compare fees before anyone visits, so ours are printed.
01Our fees, in full
- Full management: £240 a flat a year, minimum £2,400. Four site visits a year and a named manager.
- Director Desk (administration only): £895 a year for two to six flats, then £110 a flat. One visit a year.
- Estates of houses: £100 a home for the first hundred homes, £40 a home after that, minimum £1,000.
- The only extras: major works administration at 10% of works up to £50,000 and 5% above; a solicitor's pack on a sale £300; an additional site visit £125; an arrears notice £75; taking on a new building £100, once.
All plus VAT, on a twelve-month rolling agreement with three months' notice. A block of 12 flats is £2,880 a year; a block of 30 flats is £7,200.
02Every charge we make
Some agents publish a long list of extras and keep their management fee to themselves. Others publish the fee and keep the extras for the back of the contract. Here is all of ours, on one table, all plus VAT.
| What | Our charge, plus VAT |
|---|---|
| Full management | £240 a flat a year, minimum £2,400, four site visits a year and a named manager |
| Director Desk (administration only) | £895 a year for two to six flats, then £110 a flat, one visit a year |
| Estates of houses | £100 a home for the first hundred homes, £40 a home after that, minimum £1,000 |
| Taking on your building | £100, once |
| Major works (section 20) administration | 10% of the works up to £50,000, 5% above |
| An extra site visit, beyond those included | £125 |
| Solicitor's pack when a flat is sold | £300 (£360 with VAT), the only charge we make on a sale |
| Arrears reminder notice | £75 |
| Notice of transfer or charge, deed of covenant, certificate of compliance, remortgage notice | Nothing |
| Leaving us | No exit fee. Three months' notice, and everything handed to your new agent |
If a lease lets the residents' company or the freeholder charge its own fee, for example for registering a sale, that is set by the lease and is not ours. Selling a flat in a building we manage costs £360 in our charges, in total.
Want the whole service charge, not just our fee? Estimate your building's service charge in six questions, every line shown.
03What the fee should cover
The budget and service charge demands, collections and arrears, the client bank account in the building's name, year-end accounts for the accountant, contractors and repairs, buildings insurance, the fire risk assessment and the rest of the compliance diary, leaseholders' enquiries, and the residents' company's own paperwork. If an agent charges separately for most of that, the headline fee is not the real fee.
04Four things to watch for
- A percentage of the service charge. It rewards the agent for spending your money.
- Undisclosed insurance commission. Ask in writing what the agent or its group earns from the policy.
- Extras only in the schedule at the back. Ask for the whole list before you sign.
- A long lock-in. Twelve months rolling with three months' notice is normal.
Work out the fee for your building on the home page, or get it in writing.
05Questions
How much is block management per flat in Essex?
Our fee is £240 a flat a year plus VAT for full management, with a £2,400 minimum.
Is block management paid from the service charge?
Yes. The managing agent's fee is a cost of running the building, paid from the service charge the leaseholders contribute to.
How much do block management companies charge?
Most charge a fixed fee per flat per year, commonly £200 to £400 plus VAT in Essex, with extras on top for things like major works, sale packs and company secretarial work. Always ask for every extra in writing, not just the headline fee.
How much are managing agent fees per flat?
Our fee is £240 a flat a year plus VAT, minimum £2,400. Smaller blocks pay the minimum; for example 8 flats is £2,400 and 30 flats is £7,200, all plus VAT.
Are block management fees negotiable?
Many firms negotiate privately, which is why fees vary so much between buildings. We publish one table for every building, so the figure on our website is the figure you pay.
Do management fees include VAT?
Most firms quote plus VAT, and a residents' management company usually cannot reclaim it, so compare figures with VAT included. Our written quotations show the all-in figure.
What is not included in the management fee?
With us: major works administration (10% of the works up to £50,000, then 5%), a solicitor's pack on a flat sale (£300, paid by the seller), an additional site visit (£125), an arrears notice (£75) and £100 once to take on a new building. Nothing else is charged on top, and we take no commission on insurance.
Ask an assistant to research us, compare our fees and tell you what to ask, before you speak to us:
06Guides for directors
- Service charge estimate
- RICS regulated block managers in Essex
- The reserve fund
- Service charge arrears
- Service charge accounts
- Directors' duties in an RMC
- How to choose a managing agent
- A free service charge check
- Service charges explained
- Buildings insurance for blocks
- Fire safety in blocks of flats
- The Directors' Library
- What is block management?
- How to change managing agent
- Residents' management companies
- Right to manage
- Section 20 major works
- Service charge disputes
- New-build estate fees
- Estate management in Essex