Managing Agent Responsibilities Explained
Understanding managing agent responsibilities is essential for every leaseholder and property owner. From financial management and building maintenance to legal compliance and duty of care, we explain everything a managing agent is obligated to deliver and how Block exceeds those standards.
What Does a Managing Agent Do?
What does a managing agent do? In the simplest terms, a managing agent is a professional appointed to handle the day-to-day management of a residential block of flats or a mixed-use building on behalf of the freeholder, a residents management company, or a right to manage company. The managing agent meaning extends far beyond simply collecting rent or arranging repairs. It encompasses a comprehensive range of duties that ensure the building is properly maintained, financially transparent, and fully compliant with all relevant legislation.
The duties of a managing agent are wide-ranging and cover every aspect of block management. These include preparing annual service charge budgets, collecting contributions from leaseholders, arranging competitive buildings insurance, coordinating reactive and planned maintenance programmes, managing contractor relationships, ensuring health and safety compliance, enforcing lease covenants, and providing regular financial reporting to the appointing party and residents.
The quality of the managing agent directly affects the condition of the building, the value of individual flats, and the day-to-day experience of everyone living there. This is why understanding managing agent responsibilities is so important, whether you are a leaseholder evaluating your current provider or a director looking to appoint a new block management company.
Legal Obligations and Duty of Care
A managing agent operates within a framework of legal obligations established by statute, common law, and the terms of the management agreement. The managing agent obligations are not merely best-practice guidelines but enforceable duties that carry real consequences for non-compliance. Understanding these obligations helps leaseholders hold their agent to account and ensures that property management is conducted to the required standard.
The managing agent duty of care is a fundamental legal principle. Under common law, a managing agent owes a duty of care to both the party that appoints them and to the leaseholders within the building. This means the agent must act with reasonable skill, care, and diligence in everything they do, from arranging building works to administering service charge accounts. A breach of this duty can result in claims for negligence if a leaseholder or the building suffers loss as a consequence.
Key legislation governing managing agent responsibilities includes the Landlord and Tenant Act 1985, which sets out requirements for service charge reasonableness and accounting, the Commonhold and Leasehold Reform Act 2002, the Building Safety Act 2022, and various health and safety regulations including fire safety legislation. At Block, we ensure full compliance with every statutory obligation, giving our clients and their residents complete confidence in our management.
Statutory Obligations
- Comply with Landlord and Tenant Act 1985 requirements for service charge administration
- Follow Section 20 consultation procedures for qualifying works and long-term agreements
- Meet Building Safety Act 2022 obligations for higher-risk buildings
- Comply with fire safety regulations and maintain up-to-date fire risk assessments
- Hold client money in designated trust accounts as required by law
- Belong to an approved redress scheme such as the Property Redress Scheme
Common Law Duties
- Exercise reasonable care and skill in the performance of all management functions
- Act in good faith and in the best interests of the appointing party
- Avoid conflicts of interest, particularly when appointing contractors or placing insurance
- Account transparently for all monies received and expended on behalf of the building
- Follow lawful instructions within the scope of the management agreement
- Disclose all material information that may affect the client or the property
Regulatory Standards: RICS, ARMA, and TPI
Are managing agents regulated? While there is currently no statutory licensing regime for managing agents in England, the industry is overseen by several professional bodies that set standards of practice and provide accountability. The government has committed to introducing a formal regulatory framework, but in the meantime, membership of recognised industry bodies is the clearest indicator of a professional and accountable managing agent.
The Royal Institution of Chartered Surveyors (RICS) is the leading professional body for property management in the UK. RICS-regulated firms must comply with the RICS Service Charge Residential Management Code, which sets out detailed standards for financial management, communication, maintenance, and dispute resolution. RICS membership requires qualified professionals, professional indemnity insurance, and regular auditing of compliance. Block operates in accordance with the RICS code, ensuring every building we manage benefits from the highest professional standards.
The Association of Residential Managing Agents (ARMA) is the leading trade body specifically for residential managing agents. ARMA members must meet strict criteria including transparent accounting, proper client money handling, membership of a redress scheme, and adherence to the ARMA Standards. ARMA-Q is the quality accreditation awarded to firms that undergo independent audit of their systems and processes.
The Property Institute (TPI) represents property managers across the UK and provides professional qualifications, training, and guidance. TPI members are expected to maintain professional competence and follow established codes of conduct. Together, these bodies provide a framework of accountability that protects leaseholders and ensures managing agent responsibilities are taken seriously. If your current agent is not a member of any professional body, this may be a reason to consider switching your managing agent.
Key Responsibilities of a Managing Agent
The duties of a managing agent can be grouped into four core areas of responsibility. Each area is critical to the effective management of a residential block and directly impacts the quality of life for leaseholders and the long-term value of the property. Understanding these responsibilities helps you evaluate whether your current managing agent is meeting the required standard.
Financial Management
- Preparing detailed annual service charge budgets based on the building actual costs
- Issuing service charge demands and collecting contributions from all leaseholders
- Managing arrears through a structured recovery process
- Maintaining reserve and sinking funds for future major works
- Producing independently certified annual service charge accounts
- Ensuring all client money is held in designated trust accounts
Building Maintenance
- Conducting regular building inspections to identify maintenance needs
- Managing reactive repairs through a 24/7 emergency response service
- Creating and implementing planned preventative maintenance programmes
- Tendering and procuring works through competitive contractor quotations
- Supervising contractor performance and ensuring work is completed to standard
- Managing Section 20 consultation processes for qualifying major works
Compliance and Safety
- Arranging and reviewing annual fire risk assessments
- Ensuring compliance with the Building Safety Act and fire safety regulations
- Managing gas safety, electrical safety, and asbestos compliance
- Arranging competitive buildings insurance and managing claims
- Maintaining the building health and safety compliance register
- Fulfilling all obligations under the Landlord and Tenant Act 1985
Communication and Administration
- Providing a dedicated property manager as the primary point of contact
- Issuing regular updates on building matters, works, and financial performance
- Operating an online portal for leaseholders to access documents and raise queries
- Facilitating annual general meetings and board meetings for directors
- Handling lease queries, consent applications, and management pack requests
- Maintaining accurate records of all communications and transactions
Managing Agent vs Management Company: What's the Difference?
The terms managing agent vs management company are often used interchangeably, but they refer to different entities with distinct roles. Understanding the difference is important for leaseholders who want to know who is responsible for the management of their building and how decisions are made.
A management company, such as a residents management company (RMC) or a freehold management company, is the corporate entity that holds the responsibility for managing the building. The directors of this company, usually elected from among the leaseholders, make strategic decisions about the building including setting budgets, approving major works, and appointing the managing agent. The management company is the client in this relationship.
A managing agent, by contrast, is the professional firm appointed by the management company or freeholder to carry out the day-to-day managing agent responsibilities. The agent acts under delegated authority and is accountable to the appointing party for the quality and cost of their service. Managing agent fees are typically included within the service charge budget and charged on a per-unit basis.
At Block, we work alongside management company directors and freeholders to deliver professional block management that meets the highest standards. Whether you are a director of a residents management company or a freeholder looking for a reliable partner, learn more about our team and approach.
Qualities of a Good Managing Agent and Our Approach
Knowing what does a managing agent do is only part of the picture. Equally important is understanding what separates a good managing agent from a poor one. For anyone considering how to become a managing agent or evaluating their current provider, the following qualities are essential markers of professional, accountable property management.
At Block, we have built our business on these principles. We are committed to the highest professional standards, and our accreditations with industry bodies including RICS and ARMA demonstrate that commitment. Every building we manage benefits from a dedicated property manager, transparent financial reporting, proactive maintenance planning, and full regulatory compliance. We are also a member of the Property Redress Scheme, providing our clients with independent dispute resolution should it ever be needed.
- Transparent and competitive managing agent fees with no hidden commissions on insurance or contractor work
- Membership of recognised professional bodies including RICS, ARMA, and an approved redress scheme
- A dedicated, named property manager for every building who knows the property and its residents
- Proactive communication including regular updates, an online portal, and responsive query handling
- Detailed and independently certified financial reporting that accounts for every pound of service charge money
- A structured complaints procedure and membership of the Property Redress Scheme for independent resolution
- Ongoing professional development and training for all property management staff
If your current managing agent is not delivering on these fundamentals, it may be time to switch your managing agent. We offer a free, no-obligation review of your current management arrangements and can manage the entire transfer process on your behalf.
Frequently Asked Questions About Managing Agent Responsibilities
What is the role of a managing agent?
The role of a managing agent is to act on behalf of the freeholder or residents management company to manage all aspects of a residential block of flats. This includes collecting and administering service charges, arranging buildings insurance, coordinating building maintenance and repairs, ensuring compliance with health and safety legislation, enforcing lease covenants, managing contractor relationships, and communicating with leaseholders. A managing agent serves as the professional intermediary between the property owner and the residents, ensuring the building is well maintained, financially sound, and fully compliant with all legal requirements.
What are the five duties of an agent?
The five core duties of an agent in the context of property management are the duty of care, the duty of loyalty, the duty to account, the duty to follow instructions, and the duty of disclosure. The duty of care requires the managing agent to act with reasonable skill and diligence. The duty of loyalty means the agent must act in the best interests of their client and avoid conflicts of interest. The duty to account requires transparent financial reporting of all monies received and spent. The duty to follow instructions means the agent must act within the scope of their authority as set out in the management agreement. The duty of disclosure requires the agent to keep the client fully informed of all material matters affecting the property.
Do managing agents have a duty of care?
Yes, managing agents have a duty of care to both the freeholder or management company that appoints them and to the leaseholders within the building. This duty of care requires the managing agent to act with reasonable skill, care, and diligence in the performance of their management functions. Under common law, a managing agent can be held liable for losses caused by negligence in the performance of their duties. Professional managing agents who are members of RICS or ARMA are held to even higher standards through their respective codes of practice, which set out detailed expectations for professional conduct and competence.
What is the difference between a landlord and a managing agent?
A landlord, also known as the freeholder, is the legal owner of the freehold interest in the building. They hold ultimate responsibility for maintaining the structure and common parts as set out in the leases. A managing agent is a professional 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 managing agent acts as an agent of the appointing party and exercises delegated authority. While the managing agent handles the operational responsibilities, the legal obligations remain with the landlord or management company that appointed them.
What is the most important duty of an agent?
The most important duty of a managing agent is arguably the duty of care, as it underpins every other obligation. A managing agent who exercises proper care and diligence will naturally fulfil their responsibilities in financial management, building maintenance, compliance, and communication. In practice, the duty of care means proactively identifying and addressing maintenance issues before they escalate, ensuring the building complies with all current legislation, managing service charge funds prudently and transparently, and keeping leaseholders informed of all matters that affect their property.
Does a managing agent need to be registered?
Yes, managing agents in England are required by law to be a member of an approved redress scheme such as the Property Redress Scheme or The Property Ombudsman. This requirement was introduced by the Enterprise and Regulatory Reform Act 2013. Failure to join a redress scheme can result in a fine of up to 5,000 pounds. While there is currently no statutory licensing requirement for managing agents, the government has committed to introducing a regulatory framework. In addition, managing agents who hold client money must comply with client money protection regulations. Membership of professional bodies such as RICS and ARMA, while voluntary, demonstrates a commitment to higher standards of practice.
Choose a Managing Agent That Takes Responsibility Seriously
At Block, we don't just understand managing agent responsibilities - we exceed them. With RICS and ARMA accreditation, transparent managing agent fees, and a dedicated property manager for every building, we deliver block management you can trust. Contact us today for a free consultation or call to discuss your building's needs.