Management Companies – What Do They Do?

Property Records

In her latest blog, Timms Trainee Solicitor, Molly Evans discusses what property management companies do…..

Management Companies – Residential Leaseholders

When you buy a leasehold within a larger building, for example a block of flats, the communal areas and the building are owned by the Landlord. Some Landlords will choose to maintain, repair, insure, clean and manage the property themselves but often they appoint a management company who deals with all of these things on their behalf. Management companies will therefore collect a fee (service charge) from the leaseholders in order to finance the upkeep of the building.  Management companies must be transparent with the leaseholders and have accounting obligations that are subject to external scrutiny. This is to ensure that the interests of the leaseholders are protected. Information about how the service charge is calculated and what services will be provided can be found in the lease itself. The service charge is different to Ground Rent, which is often payable in addition to the service charge.

Management Companies – Freehold Property Owners

It is now becoming increasingly common, particularly for new build developments, that the freehold property owners are required to pay a service charge (sometimes called a rent charge) to a management company. This fee would be for the upkeep and maintenance of the communal areas of the development for example, the mowing of grass, landscaping, and the upkeep of unadopted roads (that are not maintained by the council.) The payment obligations are ordinarily set out in the Transfer Deed signed by the owners when they purchase the property. Future purchasers will be required to sign a Deed of Covenant which ensures the obligation to pay the service charge passes to the new owner.

If you are buying a property, your conveyancer will make enquiries and gather further information from the management company so you can establish whether you will be liable to pay a service charge and whether there is a satisfactory management company arrangement in place, and how this will affect you during your ownership of the property.

How We Can Help

If you woukld like further assistance or have any questions, please feel free to contact any of the conveyancing team on freephone 0800 011 6666 or via email at

Molly Evans

Molly Evans

October 2022


Blog by Area of Expertise