Block management fees explained
"How much should block management cost?" is the question every leaseholder and RMC director asks — and the honest answer is "it depends". This guide explains how managing-agent fees are structured, what's a reasonable range, and how to compare quotes without being caught out by the extras.
What the management fee actually pays for
The core management fee covers the agent's day-to-day running of your block: collecting service charges, arranging repairs and maintenance, organising buildings insurance, keeping accounts, and handling leaseholder queries. It is separate from the service charge itself — the fee is the agent's charge for managing; the service charge is the pot that pays for the building's costs.
How fees are charged
| Model | How it works | Common where |
|---|---|---|
| Per unit (per flat) | A fixed annual fee per flat, e.g. £X per flat per year | Most residential blocks |
| Percentage | A % of the total service-charge budget | Larger / higher-spend developments |
| Fixed fee | A single annual figure for the whole block | Very small blocks |
Per-flat is the most transparent and the easiest to compare between agents. Be wary of percentage models on blocks planning major works — the fee rises with the spend.
What's included — and what costs extra
A quote can look cheap until you read the exclusions. Ask what's inside the core fee and what's billed on top. Common extras: company secretarial work, out-of-hours emergency cover, major-works (Section 20) project supervision (often a % of the works), and additional site visits.
How to compare quotes fairly
- Get the fee on the same basis (per flat per year) from each agent.
- Ask for a sample service-charge budget, not just the headline fee.
- List the extras explicitly and add them in.
- Check accreditation (TPO/TPI) and client money protection — a cheap unaccredited agent is a false economy.
- Weigh the fee against reviews — poor communication costs more in the long run than a few pounds per flat.
This guide is general information about leasehold in England & Wales, not legal advice. Rules differ in Scotland and Northern Ireland, and leasehold law is changing — check your lease and current guidance, or take professional advice, before acting.
Last updated June 2026.