Block Management Best Practices: ARMA & RICS Standards Guide
A comprehensive guide to block management best practices, covering ARMA managing agent accreditation, the RICS service charge code, block management transparency, managing agent standards, financial management, block management compliance, and practical advice on choosing a managing agent that meets recognised industry benchmarks.
Introduction to Block Management Best Practices
Block management best practices are the principles and processes that underpin the effective administration of residential leasehold buildings. Whether a building is managed by a professional block management company or a residents' management company, the quality of management has a direct impact on the condition of the property, the financial health of the service charge fund, and the day-to-day experience of every leaseholder living in the building.
Good block management requires a combination of technical knowledge, sound financial practice, clear communication, and a thorough understanding of the legal framework governing leasehold property. The standards set by professional bodies such as the Association of Residential Managing Agents (ARMA) and the Royal Institution of Chartered Surveyors (RICS) provide a framework for what constitutes best practice. Managing agents who adhere to these standards demonstrate a commitment to block management transparency, accountability, and professionalism.
This guide examines the key areas of block management best practices, from ARMA accreditation and the RICS service charge code to financial management, communication, health and safety compliance, and what to look for when choosing a managing agent. For an overview of block management services, visit our block management page.
ARMA Standards and the Consumer Charter
The Association of Residential Managing Agents (ARMA) is the leading trade body for residential managing agents in England and Wales. An ARMA managing agent is one that has been independently assessed and accredited as meeting a comprehensive set of professional standards. ARMA accreditation is widely regarded as a mark of quality and provides leaseholders with confidence that their managing agent operates to a recognised benchmark.
The ARMA Consumer Charter
The ARMA Consumer Charter sets out the commitments that accredited managing agents must make to their clients. These commitments include providing clear and transparent information about service charges and how they are spent, maintaining proper client money protection arrangements, holding adequate professional indemnity insurance, operating an accessible and fair complaints procedure, and communicating openly with leaseholders about matters affecting the building. The Charter is designed to ensure that leaseholders receive a consistent standard of service and have clear avenues for redress if something goes wrong.
ARMA Accreditation Requirements
To achieve and maintain ARMA accreditation, a managing agent must demonstrate compliance across a range of areas including governance, financial management, service delivery, and regulatory compliance. Accredited agents are subject to periodic independent audits and must show that they follow the RICS service charge code and other relevant professional guidance. Agents who fail to meet the required managing agent standards risk losing their accreditation, which acts as an incentive for continuous improvement. Leaseholders should check whether their managing agent holds current ARMA accreditation as a first step in assessing the quality of their management.
RICS Service Charge Management Code
The RICS service charge code, formally known as the Service Charge Residential Management Code, is the most important professional standard governing the management of residential service charges. Approved by the Secretary of State, the code has quasi-legal status, meaning that its provisions must be taken into account by tribunals and courts when determining service charge disputes.
Key Provisions of the Code
The code covers a wide range of topics essential to good block management best practices. These include the setting and approval of service charge budgets, the collection and accounting of service charge funds, the procurement of works and services through competitive tendering, the management of reserve and sinking funds, and the provision of clear and timely information to leaseholders. The code emphasises that service charge funds must be held in trust and managed separately from the agent's own funds. For a detailed breakdown of service charge accounting practices, see our block management accounting guide.
Why the Code Matters
Adherence to the RICS service charge code is not merely advisory. Because the code has been approved by the Secretary of State, a managing agent who fails to follow its provisions may find their decisions challenged more easily at the First-tier Tribunal. The code provides a clear framework for block management transparency and helps to ensure that leaseholders are treated fairly. For managing agents, following the code reduces the risk of disputes and demonstrates a commitment to professional standards that builds trust with leaseholders and directors alike.
Financial Management and Transparency
Sound financial management is at the heart of block management best practices. Leaseholders contribute significant sums through their service charges and are entitled to expect that their money is managed competently, transparently, and in accordance with both the terms of the lease and the requirements of the law. Block management transparency in financial matters is essential for building trust between the managing agent and leaseholders.
- Preparing clear, detailed service charge budgets that reflect the anticipated costs of managing and maintaining the building
- Issuing service charge demands promptly and in compliance with statutory requirements
- Holding all service charge funds in designated trust accounts separate from the agent's own money
- Maintaining a properly funded reserve fund to cover major works and avoid unexpected large demands
- Producing annual service charge accounts that are certified by a qualified accountant where required
- Providing leaseholders with access to supporting invoices, receipts, and financial records on request
- Following competitive tendering processes for significant expenditure in line with the RICS service charge code
- Reporting regularly to directors on the financial position of the building, including income, expenditure, and arrears
For further detail on accounting obligations, see our block management accounting guide. Effective financial management reduces disputes, supports the long-term condition of the building, and ensures that leaseholders receive value for their contributions.
Communication and Leaseholder Engagement
Effective communication is a cornerstone of block management best practices and a key factor in the relationship between a managing agent and the leaseholders it serves. Poor communication is one of the most common sources of dissatisfaction and complaint in block management. The best managing agents take a proactive approach to keeping leaseholders informed, engaged, and confident that their building is being well managed.
Proactive Communication
A managing agent following managing agent standards should not wait for leaseholders to ask for information. Regular updates on planned maintenance, contractor visits, insurance renewals, and service charge matters should be communicated in advance. For detailed guidance on effective leaseholder communication, see our leaseholder communication guide. Proactive communication helps to manage expectations, prevent misunderstandings, and reduce the number of reactive enquiries the agent must handle.
Complaints Handling
Every managing agent should have a clear, accessible complaints procedure that allows leaseholders to raise concerns and receive a timely response. The ARMA Consumer Charter requires accredited agents to operate a formal complaints process and to signpost leaseholders to independent dispute resolution if the complaint cannot be resolved directly. A well-managed complaints process is a mark of professionalism and provides a safety net for leaseholders who feel that the agent is not meeting the expected standard. For more on this topic, visit our property management complaints guide.
Annual General Meetings
Annual general meetings (AGMs) are a formal opportunity for leaseholders to review the managing agent's performance, examine the service charge accounts, ask questions about planned expenditure, and vote on matters affecting the building. A good managing agent will prepare thoroughly for AGMs, provide clear and complete documentation in advance, and encourage attendance. For guidance on running effective meetings, see our AGM guide. The AGM is one of the most important mechanisms for leaseholder engagement and accountability in block management.
Health and Safety Compliance
Block management compliance with health and safety legislation is a non-negotiable responsibility for every managing agent. The legal obligations governing residential buildings are extensive and carry serious consequences for non-compliance, including criminal prosecution, civil liability, and reputational damage. A managing agent operating to best practice standards will have robust systems in place to ensure that all health and safety requirements are met.
Fire Safety
Fire safety is the most critical area of block management compliance. Managing agents must ensure that fire risk assessments are carried out by a competent person, reviewed regularly, and that all recommendations are actioned within appropriate timeframes. This includes maintaining fire detection and alarm systems, emergency lighting, fire doors, dry risers, and clear means of escape. The Regulatory Reform (Fire Safety) Order 2005 and the Building Safety Act 2022 impose significant duties on those responsible for managing residential buildings, particularly high-rise buildings.
Asbestos and Legionella Management
Buildings constructed before 2000 may contain asbestos-containing materials that must be identified, assessed, and managed in accordance with the Control of Asbestos Regulations 2012. Managing agents must commission asbestos surveys, maintain an asbestos register, and ensure that anyone carrying out work in the building is aware of the location and condition of any asbestos present. Similarly, where a building has water systems that could create a risk of Legionella bacteria, the managing agent must ensure that appropriate risk assessments and control measures are in place.
Electrical and Gas Safety
Regular inspection and testing of communal electrical installations is essential to ensure that they are safe and in good working order. Managing agents should arrange periodic electrical inspection condition reports (EICRs) for communal areas and ensure that any remedial work identified is carried out promptly. Where communal gas supplies or boilers exist, annual gas safety checks must be completed by a Gas Safe registered engineer. Maintaining accurate records of all safety inspections and certifications is a fundamental requirement of block management compliance.
Choosing and Monitoring a Managing Agent
Choosing a managing agent is one of the most important decisions a freeholder or residents' management company will make. The quality of the managing agent has a direct bearing on the condition of the building, the financial management of service charge funds, the satisfaction of leaseholders, and compliance with legal obligations. Knowing what to look for and how to hold the agent to account is essential for achieving the best outcomes.
What to Look For
When choosing a managing agent, you should consider whether the agent holds ARMA accreditation, whether they follow the RICS service charge code, what block management qualifications their staff hold, and whether they carry adequate professional indemnity insurance and client money protection. Ask for references from buildings of a similar size and type, and enquire about their approach to communication, financial reporting, and health and safety management. A transparent and detailed proposal that sets out the scope of services, fees, and key performance indicators is a positive sign of a professional operation.
Monitoring Performance
Once appointed, the managing agent's performance should be reviewed regularly against the agreed scope of services and the standards set out in the RICS code and ARMA Consumer Charter. Directors should hold regular meetings with the agent, review financial reports and arrears levels, inspect the building to check that maintenance is being carried out, and seek feedback from leaseholders. If the agent is not meeting the expected managing agent standards, raise concerns formally and in writing. If issues persist, consider whether a change of agent is necessary. Our block management page provides further information on what to expect from a professional agent.
Frequently Asked Questions About Block Management Best Practices
What are the responsibilities of a block management company?
A block management company is responsible for the day-to-day administration and upkeep of a residential building on behalf of the freeholder or a residents' management company. Core responsibilities include collecting service charges, managing the building's finances and reserve fund, arranging buildings insurance, instructing and supervising contractors for routine maintenance and major works, ensuring compliance with health and safety legislation including fire safety regulations, and keeping leaseholders informed about decisions that affect the building. A competent managing agent will also handle Section 20 consultations for qualifying works, prepare and distribute annual service charge accounts, organise annual general meetings, and maintain proper records. The agent acts as the central point of contact between leaseholders, directors, contractors, and the freeholder, and must balance the interests of all parties while ensuring the building is well maintained and legally compliant.
What is the RICS service charge management code?
The RICS Service Charge Residential Management Code is a professional standard published by the Royal Institution of Chartered Surveyors that sets out best practice for the management of residential service charges in England and Wales. The code was approved by the Secretary of State under Section 87 of the Leasehold Reform, Housing and Urban Development Act 1993, which means that a tribunal or court must take its provisions into account when determining disputes about service charges. The code covers areas including the setting of service charge budgets, the collection of charges, the treatment of reserve and sinking funds, accounting practices, the procurement of works and services, communication with leaseholders, and dispute resolution. It promotes transparency, accountability, and fairness in the management of service charges and provides a benchmark against which the performance of a managing agent can be measured. Adherence to the code is a hallmark of a professional and competent block management company.
How do I know if my managing agent is good?
A good managing agent demonstrates competence and professionalism across several key areas. Financial management should be transparent, with clear service charge budgets, timely issuing of demands, and annual accounts that are easy to understand and properly certified. Communication should be proactive and responsive, with leaseholders kept informed about works, expenditure, and decisions that affect the building. The agent should be accredited by a recognised professional body such as ARMA or the RICS and should hold appropriate professional indemnity insurance. Maintenance of the building should be well planned, with a programme of planned preventative maintenance rather than a purely reactive approach. Health and safety compliance, including fire risk assessments and asbestos management, should be up to date. You should also consider whether the agent handles complaints effectively, whether they follow the RICS service charge code, and whether they consult leaseholders properly before undertaking major works under Section 20 of the Landlord and Tenant Act 1985.
What qualifications should a block manager have?
Block managers should ideally hold professional qualifications that demonstrate their competence in residential property management. The most widely recognised qualifications include membership of the Institute of Residential Property Management (IRPM) at Associate or Member level, and qualifications awarded by professional bodies such as the RICS. IRPM membership requires candidates to demonstrate knowledge of leasehold law, service charge management, health and safety legislation, building maintenance, and financial management. Some managing agents also hold qualifications in areas such as health and safety management, fire safety, or accounting. Beyond formal qualifications, experience is critically important. A good block manager should have practical experience of managing residential buildings, dealing with contractors, handling leaseholder disputes, and navigating the legal requirements of the Landlord and Tenant Act 1985. Continuous professional development is also essential, as the regulatory landscape for block management is constantly evolving with new legislation and industry guidance.
How should a managing agent communicate with leaseholders?
Effective communication between a managing agent and leaseholders is fundamental to good block management. A managing agent should provide regular updates on matters affecting the building, including planned maintenance, major works, insurance renewals, and any changes to service charge budgets or expenditure. Communication should be clear, timely, and accessible, using a combination of written correspondence, email, and where appropriate, an online portal where leaseholders can access documents, view their account, and raise queries. The agent should respond to enquiries within a reasonable timeframe, typically within five to ten working days for non-urgent matters. Important notices, such as Section 20 consultation notices, must be served in accordance with the statutory requirements. Annual general meetings provide a formal opportunity for leaseholders to ask questions and hold the agent to account. A transparent and open approach to communication builds trust, reduces disputes, and ensures that leaseholders feel involved in decisions about their building.
What does ARMA accreditation mean for managing agents?
ARMA stands for the Association of Residential Managing Agents and is the leading trade body for residential managing agents in England and Wales. ARMA accreditation means that a managing agent has been independently assessed and found to meet a set of professional standards covering governance, financial management, transparency, and service delivery. Accredited members must comply with the ARMA Consumer Charter and the ARMA Rules, which set out requirements for client money protection, complaints handling, professional indemnity insurance, and adherence to the RICS Service Charge Residential Management Code. ARMA-accredited agents are subject to periodic audits and must demonstrate ongoing compliance with these standards. For leaseholders, choosing an ARMA-accredited agent provides an additional layer of assurance that the agent operates to a recognised standard and is accountable to an external body. If a leaseholder has a complaint about an ARMA member that cannot be resolved directly, they can escalate the matter to ARMA, which has the power to investigate and, if necessary, sanction or expel members who fail to meet the required standards.
Need Help With Block Management?
Whether you are a director looking for a managing agent that meets ARMA managing agent accreditation standards, a leaseholder seeking block management transparency and accountability, or you need guidance on block management compliance and the RICS service charge code, Block is here to help. Our experienced team delivers professional block management services across hundreds of buildings nationwide.