Leaseholder Communication: Best Practice Guide
Effective leaseholder communication is the foundation of successful block management. This guide covers statutory notices, resident portals, AGMs, complaint handling, and best practices for managing agents to keep residents informed and engaged.
Why Leaseholder Communication Matters
Impact on Resident Satisfaction
Poor leaseholder communication is consistently identified as one of the top complaints in the property management sector. When managing agents fail to communicate effectively, residents feel ignored, undervalued, and frustrated. This leads to increased disputes, higher service charge arrears, and a breakdown in the relationship between leaseholders and their management company.
Conversely, proactive and transparent communication builds trust, encourages timely payment of service charges, and creates a positive living environment. Leaseholders who feel well informed are far more likely to support management decisions, approve necessary expenditure, and engage constructively with their block management company.
Arrears Reduction and Dispute Prevention
Clear communication about service charge budgets, expenditure, and upcoming works helps leaseholders understand what they are paying for and why. This transparency is one of the most effective tools for reducing service charge arrears and preventing costly disputes at the First-tier Tribunal.
A well-structured communication strategy ensures that leaseholders receive timely information, have access to key documents, and know how to raise concerns before they escalate into formal complaints or legal proceedings.
Learn more about our approach to block management and how we prioritise effective resident engagement across all the developments we manage.
Statutory Communication Requirements
Section 21 Summaries of Rights and Obligations
Under Section 21 of the Landlord and Tenant Act 1985, every service charge demand must be accompanied by a summary of the leaseholder's rights and obligations. This summary informs leaseholders of their right to request a summary of costs, inspect supporting documents, and challenge charges at the First-tier Tribunal.
Failure to include the Section 21 summary means the service charge is not legally due until the summary is provided. This is a common compliance failure that can significantly impact service charge collection and cash flow for the development.
Section 20 Consultation Notices
The Section 20 consultation process is one of the most important statutory communication requirements in leasehold management. Before undertaking qualifying works costing more than £250 per leaseholder, or entering a qualifying long-term agreement costing more than £100 per leaseholder per year, the landlord must follow a prescribed consultation process.
This involves serving a Notice of Intention, considering leaseholder observations, obtaining estimates, and serving a Notice of Estimates before proceeding. Each stage has specific requirements for content and timescales that must be strictly followed.
Service Charge Demands and Ground Rent Notices
Service charge demands must contain prescribed information including the landlord's name and address, and be accompanied by the Section 21 summary. Ground rent demands must also follow specific requirements introduced by the Commonhold and Leasehold Reform Act 2002, and ground rent is not legally due unless a valid demand has been served.
For detailed information on statutory requirements, see our service charge law guide and our comprehensive Section 20 consultation guide.
Resident Portals and Digital Communication
Online Platforms and Document Access
Modern block management increasingly relies on digital tools to improve leaseholder communication. Resident portals provide a centralised platform where leaseholders can access important documents, view their service charge account, and communicate with their managing agent at any time.
A well-designed resident portal should provide access to:
- Service charge budgets, accounts, and payment history
- Building insurance certificates and policy summaries
- Key documents including the lease and management agreement
- AGM minutes, notices, and resolutions
- Building health and safety documentation
- Contact details for the managing agent and emergency services
Repair Reporting and Maintenance Updates
One of the most valued features of a resident portal is the ability to report repairs and maintenance issues online and track their progress. This provides a clear audit trail, reduces the administrative burden on the managing agent, and gives leaseholders confidence that their concerns are being addressed.
Digital communication channels including email updates, portal notifications, and messaging systems complement traditional methods such as letters and notice boards to ensure all residents receive important information in a timely manner.
Find out how our residential block management service uses digital tools to keep leaseholders informed and engaged.
Annual General Meetings and Resident Meetings
AGM Requirements for RTM Companies and RMCs
Right to Manage (RTM) companies and Resident Management Companies (RMCs) are required to hold Annual General Meetings in accordance with the Companies Act 2006 and their articles of association. AGMs provide a formal opportunity for leaseholders to review the company's activities, approve accounts, appoint directors, and make decisions about the management of their building.
Notice of an AGM must be given at least 14 clear days before the meeting, unless the articles specify a longer period. The notice must state the date, time, and place of the meeting, and set out the business to be transacted, including any special resolutions to be proposed.
Best Practices for Resident Meetings
Whether or not there is a formal requirement to hold meetings, resident meetings are an invaluable communication tool. They provide a forum for leaseholders to ask questions, raise concerns, and contribute to decisions about their building. Best practices for effective resident meetings include:
- Providing clear agendas and supporting documents in advance
- Choosing accessible venues and convenient meeting times
- Offering virtual attendance options where possible
- Preparing a clear financial summary for discussion
- Allowing adequate time for questions and open discussion
- Circulating minutes promptly after the meeting
Learn more about how we support Right to Manage companies with AGM administration and ongoing resident engagement.
Handling Complaints and Disputes
Complaint Procedures and Response Times
Every managing agent should have a clear, written complaints procedure that is accessible to all leaseholders. This procedure should set out how complaints can be submitted, the timescales for acknowledgement and response, and the escalation process if the leaseholder remains dissatisfied.
Best practice standards suggest that complaints should be acknowledged within 2-3 working days and a full response provided within 10-15 working days. If a more detailed investigation is required, the leaseholder should be kept informed of progress and given a revised timescale for the response.
Escalation and the Property Ombudsman
If a leaseholder is not satisfied with the outcome of the internal complaints process, the matter can be escalated to a senior manager or director. If the complaint remains unresolved, all managing agents in England are legally required to belong to a government-approved redress scheme such as The Property Ombudsman or the Property Redress Scheme.
For service charge disputes specifically, leaseholders also have the right to apply to the First-tier Tribunal (Property Chamber) for a determination on the reasonableness or payability of charges. Good communication throughout the complaints process can often prevent matters from reaching this stage.
Read our detailed guide on service charge disputes for more information on the tribunal process and how to resolve disagreements effectively.
Communication During Major Works
Keeping Residents Informed During Section 20 Projects
Major works projects represent some of the most significant expenditure a leaseholder will face, and effective communication during these projects is essential. Section 20 consultation provides the formal framework, but good leaseholder communication goes far beyond the statutory minimum.
Before works commence, leaseholders should receive clear information about the scope of works, the reasons they are necessary, the expected cost and payment arrangements, the anticipated timeline, and any disruption they should expect. This proactive approach reduces anxiety and builds confidence in the management of the project.
Progress Updates and Practical Information
During major works, regular progress updates are essential. Leaseholders should be kept informed about:
- Weekly or fortnightly progress reports on the works
- Any changes to the scope, cost, or timeline
- Health and safety information and site access arrangements
- Contact details for the site manager and project team
- Details of any temporary disruption to services or access
- Final completion reports and snagging arrangements
Providing this level of communication demonstrates professionalism, reduces complaints, and helps leaseholders feel involved in the process rather than having works imposed upon them.
Explore our building maintenance services and how we manage major works projects with full transparency and resident engagement.
Frequently Asked Questions
How often should a managing agent communicate with leaseholders?
A good managing agent should communicate with leaseholders regularly throughout the year. As a minimum, leaseholders should receive annual service charge demands, budget notifications, and year-end account summaries. Best practice includes quarterly newsletters or updates, prompt responses to enquiries within defined timescales, and proactive communication about any issues affecting the building. Many managing agents now use resident portals to provide continuous access to information.
What statutory notices must be sent to leaseholders?
Managing agents and landlords must send several statutory notices to leaseholders. These include Section 20 consultation notices before undertaking qualifying works or entering qualifying long-term agreements, Section 21 summaries of rights and obligations with every service charge demand, annual service charge demands, and ground rent demands with prescribed content. Failure to serve these notices correctly can limit the amount recoverable from leaseholders.
Do leaseholders have a right to attend AGMs?
In Right to Manage (RTM) companies and Resident Management Companies (RMCs), leaseholders who are members of the company have a right to attend and vote at Annual General Meetings. The Companies Act 2006 sets out requirements for notice periods, quorum, and voting procedures. Even where there is no formal requirement, best practice encourages managing agents to hold regular resident meetings to discuss building matters and foster a collaborative approach to management.
How should complaints to a managing agent be handled?
Managing agents should have a clear, written complaints procedure that is readily available to all leaseholders. Complaints should be acknowledged promptly, ideally within 2-3 working days, with a full response provided within a defined timescale. If the leaseholder is not satisfied, there should be an escalation process, ultimately leading to referral to an independent redress scheme such as The Property Ombudsman or the Property Redress Scheme, which all managing agents are legally required to belong to.
What information should be available on a resident portal?
A comprehensive resident portal should provide access to service charge accounts and budgets, building insurance details and certificates, key documents such as the lease and management agreement, a log of reported repairs and maintenance with status updates, AGM minutes and notices, contact details for the managing agent and emergency services, and a facility for reporting new issues or making enquiries. Digital access to these documents improves transparency and reduces administrative queries.
Can leaseholders request information about their building?
Yes, leaseholders have several statutory rights to request information. Under Section 21 of the Landlord and Tenant Act 1985, leaseholders can request a summary of costs making up the service charge. Under Section 22, they can inspect supporting documents. Leaseholders can also request information about the landlord identity under the Landlord and Tenant Act 1987. A good managing agent will proactively share information rather than waiting for formal requests.
Need Help With Leaseholder Communication?
Our experienced block management team can help you implement effective communication strategies, set up resident portals, and ensure full compliance with statutory notice requirements. Get in touch today for a free consultation.