Residents Management Company Support and Services
Expert block management for residents management companies across the UK. We support RMC directors with professional managing agent services, transparent service charge administration, and full compliance management so your building runs smoothly and your leaseholders receive the service they deserve.
What Is a Residents Management Company?
A residents management company (RMC) is a private limited company, typically set up by the original property developer, in which the leaseholders of a building or estate are the shareholders or members. The RMC is usually written into the lease as the entity responsible for managing the communal areas, collecting service charges, arranging buildings insurance, and maintaining the structure and exterior of the property. In many cases, the freehold residents management company also holds the freehold interest in the building, giving it full control over management decisions.
The key distinction between a residents management company and a right to manage (RTM) company is how each comes into existence. An RMC is typically created at the point of development and written into the lease from the outset, whereas an RTM company is formed later by leaseholders who wish to take over management from a freeholder or their appointed managing agent. Both structures give leaseholders a degree of control over their block management, but the RMC is generally embedded in the ownership structure of the building from day one.
At Block, we provide professional managing agent services to residents management companies of all sizes. Whether your RMC manages a small conversion with four flats or a large estate with over 100 units, we bring the expertise, systems, and regulatory knowledge that directors of resident management companies need to fulfil their obligations effectively.
Residents Management Company vs Residents' Association
There is often confusion between a residents management company and a residents' association, but they are fundamentally different entities with different legal standing and powers. Understanding the distinction is important for leaseholders who want to know where authority and responsibility lie within their building.
A residents management company is a company registered at Companies House with legal obligations under the Companies Act 2006 and leasehold legislation. It has direct management responsibility for the building and the authority to appoint and dismiss a managing agent, set service charge budgets, commission maintenance works, and arrange residents management company insurance. A residents' association, by contrast, is a representative body formed by leaseholders to act in an advisory and consultative capacity. It has certain statutory rights when formally recognised under the Landlord and Tenant Act 1985, but it does not have management control.
Residents Management Company
- Registered at Companies House as a limited company
- Has legal management obligations set out in the lease
- Directors make binding decisions on block management
- Authority to appoint and dismiss managing agents
- Manages service charge budgets and expenditure
- Arranges buildings insurance and compliance
Residents' Association
- Informal or recognised group of leaseholders
- Advisory and consultative role only
- Can request service charge information
- Right to be consulted on managing agent appointment
- Can nominate a surveyor for service charge advice
- Does not have direct management authority
Directors of Resident Management Companies - Responsibilities
Directors of resident management companies hold important legal responsibilities under both company law and leasehold legislation. These are volunteer roles, typically filled by leaseholders within the building, but they carry genuine legal duties that must be taken seriously. Understanding these residents management company responsibilities is essential before accepting a directorship.
Under the Companies Act 2006, directors must act in the best interests of the company, exercise reasonable care and skill, avoid conflicts of interest, and comply with Companies House filing requirements including the annual confirmation statement. Under leasehold legislation, the RMC must ensure the building is properly maintained, that service charges are reasonable and properly accounted for, that statutory consultation requirements are followed for major works, and that all health and safety obligations are met.
Company Law Duties
- Act in the best interests of the RMC and its members
- Exercise reasonable care, skill, and diligence
- Avoid conflicts of interest in all decisions
- File annual confirmation statements at Companies House
- Maintain accurate registers of members and directors
- Ensure proper accounting records are kept
Management Duties
- Ensure the building is properly maintained and insured
- Collect and administer service charges lawfully
- Comply with Section 20 consultation for major works
- Meet all health and safety and fire safety obligations
- Provide annual service charge accounts to leaseholders
- Appoint competent contractors and managing agents
The good news is that the vast majority of these duties can be delegated to a professional managing agent. At Block, we handle the day-to-day management burden so that directors can focus on strategic oversight. Our service charge management and compliance expertise ensures every obligation is met on time and to the highest standard.
Common Residents Management Company Problems
Many residents management companies encounter recurring challenges that can affect the quality of building management and the experience of leaseholders. Recognising these residents management company problems is the first step towards resolving them. Here are the issues we see most frequently when buildings approach us for help.
Director Burnout and Apathy
RMC directors are volunteers, and the demands of managing a building can be overwhelming. Directors burn out, resign, or simply disengage, leaving the RMC without effective leadership. In some cases, no leaseholder is willing to take on the role, creating a management vacuum.
Lack of Professional Expertise
Most RMC directors are not property management professionals. They may lack knowledge of leasehold law, health and safety regulations, Section 20 consultation procedures, or financial reporting requirements. This can lead to non-compliance and potential legal liability.
Disputes Between Leaseholders
Disagreements about service charge levels, maintenance priorities, and building rules are common in residents management companies. Without clear governance structures and impartial management, these disputes can escalate and create a difficult living environment.
Poor Financial Management
Inadequate budgeting, failure to collect service charge arrears, lack of a reserve fund, and poor accounting practices are common residents management company problems. These issues can leave the building unable to fund essential maintenance and repairs.
Insurance and Compliance Gaps
Arranging adequate residents management company insurance and maintaining compliance with fire safety, asbestos, electrical testing, and other regulatory requirements demands specialist knowledge. Gaps in compliance can expose directors to personal liability.
Difficulty Changing Managing Agent
Some RMCs are locked into management agreements with long notice periods or restrictive terms. Directors may not know how to review and terminate an unsatisfactory agreement, or may be unsure of the process for appointing a new managing agent.
If your residents management company is experiencing any of these challenges, professional support from an experienced managing agent can make a transformative difference. We help RMCs resolve problems, establish proper governance, and deliver the standard of block management that leaseholders expect. Learn more about switching your managing agent or contact us for a free consultation.
How a Professional Managing Agent Supports Your RMC
Appointing a professional managing agent is the most effective way for a residents management company to fulfil its obligations while reducing the burden on volunteer directors. The right agent brings specialist expertise, established systems, and regulatory knowledge that ensures your building is managed to the highest professional standard.
At Block, we provide comprehensive support for residents management companies that covers every aspect of block management. Here is what our service includes for RMC clients.
- Full service charge budgeting, collection, arrears management, and certified annual residents management company accounts
- Arrangement and administration of residents management company insurance including buildings, liability, and directors and officers cover
- Planned and reactive building maintenance coordination with vetted contractors
- Health and safety compliance including fire risk assessments, asbestos management, electrical testing, and legionella checks
- Section 20 consultation management for major works exceeding 250 pounds per leaseholder
- Companies House filing support including annual confirmation statements and director changes
- Board meeting and AGM facilitation with professional minute-taking
- Dedicated property manager as a single point of contact for directors and leaseholders
- Online portal access for leaseholders to view accounts, documents, and submit maintenance requests
- Regular site inspections and property condition reports
Our approach to block management for residents management companies is built on transparency, responsiveness, and professional expertise. We act as an extension of your RMC board, handling the operational detail while keeping directors informed and in control of strategic decisions. Explore our freehold management services for RMCs that also hold the building freehold.
Residents Management Company Insurance Requirements
Arranging appropriate residents management company insurance is one of the most important responsibilities for RMC directors. Inadequate insurance cover can expose the company, its directors, and the leaseholders to significant financial risk. Understanding what cover is required and ensuring policies are properly maintained is essential.
The insurance requirements for a freehold residents management company typically include the following types of cover, each of which we arrange and administer on behalf of our RMC clients.
- Buildings insurance covering the full reinstatement cost of the structure, including communal areas and external elements
- Public liability insurance to protect against claims from third parties injured on the property
- Employers liability insurance if the RMC directly employs any staff such as caretakers or cleaners
- Directors and officers insurance to protect RMC directors against personal liability arising from their management decisions
- Engineering insurance for lifts, boilers, and other mechanical and electrical plant
- Terrorism insurance where required by the lease or lender
At Block, we work with specialist insurance brokers to obtain competitive premiums for all residents management company insurance requirements. Every policy is reviewed annually to ensure the cover remains adequate as rebuild costs change. Insurance costs are included transparently within the service charge budget with full documentation available to all leaseholders.
Frequently Asked Questions About Residents Management Companies
What does a resident management company do?
A residents management company is a limited company, usually set up by the original developer, whose members are the leaseholders within a building or estate. The RMC holds the obligation to manage the communal areas, arrange buildings insurance, collect and administer service charges, maintain the structure and exterior, and ensure the building complies with all relevant legislation. In practice, most residents management companies appoint a professional managing agent to carry out day-to-day management on their behalf, while the directors of the RMC retain strategic oversight and decision-making authority.
What power does a residents association have?
A recognised residents association has certain statutory rights under the Landlord and Tenant Act 1985, including the right to be consulted on the appointment of a managing agent, the right to appoint a surveyor to advise on service charge matters, and the right to request a summary of service charge costs. However, a residents association does not have direct management control over the building. It is an advisory and representative body rather than a management entity. By contrast, a residents management company has direct legal responsibility for the management of the building and the authority to appoint and dismiss managing agents.
Is a resident association the same as a management company?
No, a residents association and a residents management company are different entities with different legal standing. A residents management company is a company registered at Companies House with legal obligations under both company law and leasehold legislation. It typically holds the freehold or has management responsibilities written into the lease. A residents association is an informal or formally recognised group of leaseholders that acts as a representative body but does not have direct management authority. The association can lobby and consult, but the RMC makes the binding management decisions.
How to run a resident association?
Running a residents association involves establishing a committee with a chair, secretary, and treasurer, holding regular meetings with documented minutes, and ensuring the association meets the criteria for formal recognition under the Landlord and Tenant Act 1985. A recognised association must represent at least 60 percent of the qualifying tenants in the building. It is important to maintain open communication with all leaseholders, keep accurate financial records if the association collects any voluntary contributions, and engage constructively with the freeholder or managing agent on matters affecting the building.
Can residents remove a management company?
Leaseholders cannot simply remove a residents management company because the RMC is usually a requirement of the lease structure. However, leaseholders who are members of the RMC can change the directors at a general meeting, effectively changing the leadership and direction of the company. If the concern is with the managing agent rather than the RMC itself, the RMC directors have the authority to terminate the management agreement and appoint a new managing agent. In situations where the freeholder-appointed manager is the problem, leaseholders may exercise the right to manage or apply to the First-tier Tribunal for the appointment of a new manager.
What is the role of the residents association?
The role of a residents association is to represent the collective interests of leaseholders in dealings with the freeholder, the residents management company, or the managing agent. A recognised association can request information about service charges, be consulted on the appointment of a managing agent, and nominate a surveyor to advise on service charge matters. The association provides a forum for leaseholders to discuss building management issues, raise concerns, and present a unified position to those responsible for managing the property. It complements the work of the RMC but does not replace it.
Professional Support for Your Residents Management Company
Whether your residents management company needs a new managing agent, is struggling with residents management company problems, or simply wants to improve the standard of block management in your building, we are here to help. Our team provides expert RMC support to buildings across the UK, delivering transparent residents management company accounts, comprehensive insurance, and responsive day-to-day management.