How to Manage a Leasehold Block Without a Managing Agent

Introduction

More leasehold blocks across the UK are exercising their Right to Manage (RTM) — and for good reason. Professional managing agents charge significant fees, and residents often feel disconnected from decisions about their own building.

Self-management is not as daunting as it sounds. With the right software and processes, an RTM company can handle day-to-day management more efficiently than many traditional agents.

What Does Self-Managing a Block Actually Involve?

Running a leasehold block without a managing agent means your RTM company takes on responsibility for:

• Service charge collection — billing leaseholders and chasing arrears
• Maintenance and repairs — appointing contractors and tracking works
• Reserve fund management — building up funds for major works
• Accounting and year-end accounts — complying with Section 21 and RICS codes
• Insurance — arranging buildings insurance for the block
• Compliance — fire safety, asbestos surveys, lift inspections, and more

Step 1 — Form Your RTM Company

Before you can take over management, you must establish a Right to Manage company under the Commonhold and Leasehold Reform Act 2002. Key requirements:

• At least 50% of qualifying leaseholders must support the RTM claim
• The building must be a self-contained block with at least two flats
• The RTM company must be incorporated at Companies House
• A formal notice must be served on the freeholder

The process typically takes 3–6 months from incorporation to handover.

Step 2 — Set Up Service Charge Collection

Service charges are the financial lifeblood of any managed block. When you take over, you need to:

1. Review existing lease terms — service charge obligations are defined in the lease, not invented
2. Prepare a service charge budget — estimate annual expenditure and divide between units
3. Issue Section 21 demands — service charges are not legally collectable without a proper demand
4. Set up payment collection — direct debit via GoCardless is far more reliable than standing orders

Many RTM companies underestimate the administrative burden of chasing late payments. A platform like PropLinker automates reminders and tracks arrears so nothing falls through the cracks.

Step 3 — Manage Maintenance Properly

Reactive maintenance is one area where self-managed blocks most commonly struggle. Without a 24/7 helpdesk, leaseholders won't know who to call.

Best practices:

• Designate a responsible director or volunteer as the first point of contact
• Create a list of approved contractors for common jobs (plumbing, electrical, lifts)
• Always get at least two quotes for works over £250
• Keep a maintenance log for all works — this protects the RTM company if disputes arise

Step 4 — Reserve Fund and Major Works

Section 20 consultation is legally required before carrying out major works costing more than £250 per leaseholder. Failing to consult can limit your ability to recover costs.

Your reserve fund (sinking fund) should be built up gradually through annual service charges to avoid hitting leaseholders with large one-off demands for roof repairs or lift refurbishments.

Step 5 — Use Property Management Software

The biggest shift from using a managing agent to self-managing is that you need to handle the administration yourself. Modern property management software like PropLinker replaces the back-office functions of a managing agent:

• Automated service charge billing and collection via GoCardless Direct Debit
• Arrears tracking and late fee calculation
• Financial reporting (income/expenses, cash flow)
• Document storage
• Communication with leaseholders

Is Self-Management Right for Your Block?

Self-management works best in blocks where:

• At least one director has time to dedicate to management (typically 5–10 hours/month for a small block)
• The block is in reasonable condition with no major imminent works
• Leaseholders are engaged and willing to cooperate

For larger blocks (50+ units) or those with complex issues, a hybrid approach — using software but appointing a part-time managing agent for specific tasks — can be a good middle ground.

Conclusion

Self-managing a leasehold block is absolutely achievable for most RTM companies. The key is to have clear processes, use the right tools, and ensure at least one director is willing to take ownership of the administrative side.

PropLinker was built specifically for UK RTM companies and self-managed blocks — handling service charges, GoCardless payments, and accounting in one place.