Managing Agent Duties & Obligations Guide
A comprehensive guide to the duties of a managing agent, covering managing agent responsibilities, the managing agent duty of care, regulatory and legal managing agent obligations, and how to hold your managing agent accountable when standards fall short. Whether you are a leaseholder asking what does a managing agent do or a director reviewing your agent's performance, this guide explains everything you need to know.
What Is a Managing Agent?
The managing agent meaning is straightforward: a managing agent is a professional or company appointed to handle the day-to-day management of a residential building on behalf of its freeholder, a residents' management company, or a right to manage company. The managing agent serves as the central point of contact for leaseholders and is responsible for ensuring the building is well maintained, financially sound, and compliant with all relevant legislation.
A managing agent for flats typically handles service charge collection, building insurance, contractor management, health and safety compliance, and communication with leaseholders. The scope of the agent's authority is defined by the management agreement between the agent and the client, which should clearly set out managing agent responsibilities and the fees charged for the service.
Understanding what does a managing agent do is the first step to evaluating whether your current agent is performing to the standard you should expect. For guidance on selecting the right agent, see our guide to choosing a managing agent.
Core Duties and Responsibilities
The duties of a managing agent are wide-ranging and cover every aspect of building management. While the exact scope depends on the terms of the management agreement, the following are the core managing agent responsibilities that leaseholders should expect from any competent agent.
Service Charge Administration
A primary duty of the managing agent is to prepare an annual service charge budget, issue demands to leaseholders, collect payments, and produce year-end accounts. The agent must ensure that all service charge funds are held in a designated client account, separate from the agent's own money, and that expenditure is properly authorised, reasonably incurred, and transparently reported.
Building Maintenance
The agent is responsible for arranging routine maintenance, instructing contractors for repairs, and overseeing planned works programmes. This includes maintaining communal areas, managing cleaning contracts, and ensuring that the building fabric is kept in good condition. Effective maintenance management is one of the most visible managing agent responsibilities and directly affects leaseholders' quality of life and property values.
Insurance
Arranging and maintaining adequate buildings insurance is a fundamental duty. The managing agent must ensure that the building is insured for its full reinstatement value, that the policy covers all relevant risks, and that leaseholders are informed of the policy details. The agent should also handle insurance claims promptly and efficiently on behalf of the building.
Communication and Record Keeping
A competent managing agent maintains clear and open communication with leaseholders, responds to enquiries promptly, and keeps accurate records of all management activities. This includes maintaining a register of leaseholders, keeping records of works and expenditure, and providing regular updates on matters affecting the building. Poor communication is one of the most common sources of block management complaints.
Legal and Regulatory Obligations
Beyond the practical tasks of building management, a managing agent must comply with a range of legal and regulatory requirements. These managing agent obligations are set out in statute, in industry codes of practice, and in the terms of the lease and management agreement.
Landlord and Tenant Act 1985
The Landlord and Tenant Act 1985 governs how service charges must be demanded, calculated, and accounted for. A managing agent acting on behalf of the landlord must ensure that all service charge demands comply with the Act, including the requirement to provide a summary of costs, the right for leaseholders to inspect accounts, and compliance with the Section 20 consultation process for major works exceeding the statutory threshold.
RICS Service Charge Code
Managing agents who are members of the Royal Institution of Chartered Surveyors must comply with the RICS Service Charge Residential Management Code. This code sets out best practice standards for service charge management, including budgeting, accounting, procurement, and dispute resolution. Even agents who are not RICS members are expected to follow the principles of the code, and the First-tier Tribunal regularly refers to it when assessing the reasonableness of service charges.
Health and Safety Legislation
A managing agent has a duty to ensure the building complies with all relevant health and safety legislation. This includes fire safety regulations under the Regulatory Reform (Fire Safety) Order 2005, asbestos management duties, gas safety checks where applicable, electrical safety requirements, and the provisions of the Building Safety Act 2022 for higher-risk buildings. Failure to meet these managing agent obligations can result in criminal prosecution and civil liability.
Redress Scheme Membership
Managing agents in England are required by law to belong to a government-approved redress scheme, such as the Property Ombudsman or the Property Redress Scheme. This ensures that leaseholders have access to an independent complaints process if they are dissatisfied with their agent's conduct. For more on the complaints process, see our Property Ombudsman guide.
Duty of Care to Leaseholders
The managing agent duty of care is a fundamental principle that underpins the entire agent-leaseholder relationship. A managing agent owes a duty of care to act competently, diligently, and in the best interests of the building and its residents. This duty arises from both common law and the professional standards expected of qualified property managers.
In practice, the managing agent duty of care means that the agent must take reasonable steps to maintain the building in safe and habitable condition, manage finances prudently, respond to reported issues within a reasonable timeframe, and ensure that contractors carry out work to an acceptable standard. The duty extends to all leaseholders in the building, not just the party that appointed the agent.
Where a managing agent breaches their duty of care, whether through negligence, incompetence, or deliberate inaction, leaseholders may be able to seek redress. This can include making a formal complaint to the agent's professional body, referring the matter to the Property Ombudsman, or in serious cases, pursuing a claim for compensation through the courts.
Financial Management Duties
Sound financial management is at the heart of managing agent responsibilities. Leaseholders entrust significant sums to their managing agent through service charge contributions and reserve fund payments, and they are entitled to expect that this money is managed with the same care and diligence that a trustee would apply.
- Preparing a realistic annual service charge budget that reflects anticipated expenditure and is communicated to leaseholders in advance
- Issuing service charge demands that comply with all statutory requirements, including the landlord's name and address and a summary of leaseholders' rights
- Holding all service charge and reserve fund money in designated client accounts, separate from the agent's own funds
- Producing certified year-end accounts within the timeframe required by the lease and the Landlord and Tenant Act 1985
- Pursuing service charge arrears promptly and proportionately to protect the building's cash flow
- Procuring works and services competitively, obtaining multiple quotes where appropriate, and ensuring value for money
- Disclosing any commissions, referral fees, or other financial benefits received from third-party suppliers
Failure to meet these financial duties is a serious breach of managing agent obligations and can expose the agent to regulatory action, professional disciplinary proceedings, and claims for loss. If you are concerned about your agent's financial management, understanding your managing agent responsibilities is the first step towards holding them to account.
Maintenance and Compliance Obligations
A managing agent for flats bears direct responsibility for ensuring that the building is properly maintained and that all compliance obligations are met. These duties protect both the physical fabric of the building and the health and safety of its residents.
Planned and Reactive Maintenance
The managing agent must implement a planned maintenance programme that addresses the building's long-term needs, while also responding promptly to reactive maintenance issues as they arise. This includes maintaining the roof, external walls, communal hallways, lifts, drainage systems, and any shared plant or equipment. A well-managed maintenance programme protects property values and reduces the likelihood of costly emergency repairs.
Fire Safety and Building Safety
Fire safety is one of the most critical managing agent obligations. The agent must ensure that fire risk assessments are carried out regularly, that fire detection and alarm systems are maintained, that escape routes are kept clear, and that any deficiencies identified in the fire risk assessment are remediated promptly. Under the Building Safety Act 2022, agents managing higher-risk buildings have additional duties in relation to the Building Safety Regulator and must support the accountable person in maintaining a safety case for the building.
Contractor Management
The managing agent is responsible for selecting, instructing, and supervising contractors who carry out work on the building. This includes verifying that contractors hold appropriate insurance and qualifications, obtaining competitive quotes, ensuring works are completed to a satisfactory standard, and managing any defects or disputes that arise. Poor contractor management is a frequent source of leaseholder dissatisfaction and block management complaints.
When Managing Agents Fall Short
Not all managing agents meet the standards that leaseholders are entitled to expect. Common failures include poor communication, slow response to maintenance requests, unexplained or excessive charges, failure to produce accounts on time, and neglect of health and safety obligations. When a managing agent consistently falls short of their managing agent responsibilities, leaseholders have several options.
Formal Complaints
The first step is to raise a formal complaint with the managing agent using their published complaints procedure. All reputable agents are required to have a complaints process in place. If the internal process does not resolve the matter, the complaint can be escalated to the Property Ombudsman or the agent's professional body. For a step-by-step guide, see our article on block management complaints.
Tribunal Applications
Leaseholders can apply to the First-tier Tribunal (Property Chamber) to challenge unreasonable service charges, to seek an order appointing a new manager under Section 24 of the Landlord and Tenant Act 1987, or to seek a determination on other matters relating to the management of the building. The Tribunal has wide powers and can, in the most serious cases, remove a managing agent and appoint a replacement.
Changing Your Managing Agent
If the relationship with your current managing agent has broken down or the agent is consistently failing to meet their managing agent obligations, it may be time to consider a change. The process for changing agents depends on who appointed them and the terms of the management agreement. Our guide on how to change your managing agent explains the options available to freeholders, directors, and leaseholders.
How to Hold Your Agent Accountable
Holding your managing agent accountable starts with understanding the duties of a managing agent and knowing what standards they are required to meet. The following steps will help you ensure that your agent is performing to the level you are entitled to expect.
- Review the management agreement to understand the scope of your agent's responsibilities and the fees they charge
- Request and scrutinise the annual service charge accounts and budget to ensure transparency and value for money
- Attend annual general meetings and ask questions about expenditure, maintenance plans, and financial performance
- Keep a written record of all communications with your agent, including response times and outcomes
- Familiarise yourself with the RICS Service Charge Residential Management Code and use it as a benchmark
- If concerns persist, submit a formal complaint in writing and escalate to the Property Ombudsman if necessary
- Consider exercising the Right to Manage if leaseholders wish to take control of the management of their building
For a detailed breakdown of what you should expect from your agent, visit our managing agent responsibilities page. If you are considering replacing your agent, our guide on how to choose a managing agent will help you find a competent and accountable replacement.
Frequently Asked Questions About Managing Agent Duties
What is the role of a managing agent?
A managing agent is a professional appointed to manage a residential building on behalf of the freeholder, a residents' management company, or a right to manage company. The role of a managing agent covers a wide range of responsibilities including collecting service charges, arranging building insurance, instructing and supervising maintenance contractors, ensuring compliance with health and safety legislation, managing communal areas, preparing annual budgets and accounts, and acting as the main point of contact for leaseholders on day-to-day property matters. The managing agent acts as an intermediary between leaseholders and the freeholder, and is expected to manage the building competently, transparently, and in accordance with the terms of each lease and all applicable legislation.
What are the five duties of an agent?
The five core duties of an agent in the context of property management are: first, a duty of care to act competently and diligently in the management of the building; second, a duty to act in good faith and in the best interests of the client (whether that is the freeholder or a residents' management company); third, a duty to account for all money received and held, including service charge funds and reserve funds, keeping them separate from the agent's own money; fourth, a duty to follow lawful instructions from the client and to act within the scope of the authority granted under the management agreement; and fifth, a duty to disclose any conflicts of interest, including any commissions or financial benefits received from third parties in connection with the management of the building. These duties arise from a combination of common law, statute, and the RICS and industry codes of practice that regulate managing agents.
Do managing agents have a duty of care?
Yes, managing agents owe a duty of care to both their client (the freeholder or management company that has appointed them) and, in practice, to the leaseholders who live in the building they manage. This duty of care requires the managing agent to act competently, to take reasonable steps to maintain the building in good repair, to comply with health and safety requirements, and to manage the building's finances prudently. If a managing agent breaches their duty of care, for example by failing to carry out essential repairs, mismanaging service charge funds, or ignoring health and safety hazards, they may be liable for the consequences. Leaseholders who suffer loss as a result of a managing agent's negligence may be able to bring a claim for compensation or report the agent to the Property Ombudsman or their professional body.
What is the difference between a landlord and a managing agent?
A landlord (or freeholder) is the owner of the freehold interest in a building. They hold the superior title and grant leases to individual flat owners. A managing agent, by contrast, is a professional or company appointed by the landlord, a residents' management company, or a right to manage company to carry out the day-to-day management of the building on their behalf. The landlord retains ultimate responsibility for the obligations set out in the lease, but delegates the practical tasks of management, such as collecting service charges, arranging maintenance, and dealing with leaseholder enquiries, to the managing agent. The managing agent acts as the landlord's agent and is bound by the terms of a management agreement. It is important to note that even when a managing agent is in place, the landlord remains legally responsible for the performance of the lease covenants, and leaseholders can hold both the landlord and the agent accountable if management obligations are not met.
Does a managing agent need to be registered?
There is no single mandatory registration scheme for managing agents in England and Wales, but there are several regulatory requirements that reputable agents must comply with. Managing agents who hold service charge money are required to protect those funds in accordance with the requirements of the relevant legislation and industry codes. Agents who are members of the Royal Institution of Chartered Surveyors (RICS) must comply with the RICS Service Charge Residential Management Code. Under the requirements of the Property Ombudsman scheme and similar redress schemes, managing agents must be registered with an approved redress scheme so that leaseholders have access to an independent complaints process. The Building Safety Act 2022 has also introduced new registration and regulatory requirements for buildings above a certain height. While there is no single register, leaseholders should check that their managing agent is a member of a professional body and is registered with an approved redress scheme.
Can a managing agent be an accountable person?
Under the Building Safety Act 2022, an accountable person is defined as the person or entity who holds or is under an obligation to repair the common parts of a higher-risk building. In most cases, the accountable person will be the freeholder or the residents' management company rather than the managing agent. However, the managing agent plays a critical role in supporting the accountable person to discharge their duties, including maintaining safety systems, keeping records, producing a safety case report, and engaging with residents on building safety matters. In some circumstances, where the managing agent holds a lease or other interest that gives them a repairing obligation over the common parts, they could themselves be an accountable person. Managing agents must work closely with the Building Safety Regulator and ensure that the buildings they manage comply with all applicable safety requirements.
Need a Managing Agent You Can Trust?
Whether you are a leaseholder concerned about your current managing agent's performance, a director looking for a new managing agent for flats, or you need guidance on managing agent complaints and how to hold your agent accountable, Block is here to help. Our experienced team delivers transparent, professional block management across hundreds of buildings nationwide.