Property Management in London, as we also see with property costs, can at times be at a premium.
Whilst management fees are a single category on your annual service charge budget, residential block management fees can differ in terms of what is included in that cost so it is essential to look closely at the cost in comparison to the services you’re are receiving.
How much do Property Management Companies Charge in London:
We have reviewed a number of block management fees (secretly of course) in order to provide you with a representation of the differing levels of property management fees across London:
What we have noticed is quite interesting about the fees that Managing Agents are charging, is the similarity to the property prices for the area. It would seem they are almost directly linked in some areas as we can see below.
How is the management fee calculated?
There is clear guidance on how Managing Agents should quote and charge their management fees. There are two methods typically used:
- The fee is calculated on a ‘per unit’ basis. This means that is there are 30 flats in the building and the management fee is £9,000 + VAT then the fee per unit would be £300 per unit.
- The fee is calculated on a fixed fee. This is seen typically with smaller buildings who agree a fixed fee per annum.
Whilst commercial properties are typically managed on a percentage of the service charge, this is not deemed to be a reasonable method for residential buildings.
What does the Managing Agent Costs cover?
The Managing Agent is paid a sum for the property management costs of the building as defined within your Lease However, this is as simple as it gets.
Each agent will include a fee for the basic services such as arranging maintenance contracts or arranging the building insurance. Some agents then charge additional costs for activities like administering insurance claims and being the company secretary. We have created an example below with some of the services and costs you can expect comparing our service to other managing agents in London:
Are there any additional costs I may have to pay?
We have now detailed all of the costs that may be issued by the block managers to the company however there are individual costs that you may be liable for. These are typically in relation to the purchase or sale of your leasehold apartment. These individual costs are shown below:
It is therefore important to scrutinise the management proposal from any new residential property management company in London so you understand what you are paying for, what is included and what additional fees may be coming your way.
Compare the above with your own Managing Agents now and see how they fair.