After building insurance, managing agent fees are often the highest cost a residents' management company faces. For smaller blocks that can't benefit from economies of scale, those fees can feel disproportionate to the service received. It's no surprise that many RMC directors consider self-management.

And there are genuine advantages. Without a managing agent in the middle, decisions happen faster, costs are more transparent, and directors have direct control over contractors and priorities. But self-management also means taking on a significant regulatory and administrative burden — one that many directors underestimate.

This guide is for RMC directors who are considering self-management, or who are already self-managing and want to make sure they're covering their obligations.

What does self-management actually involve?

When you self-manage, the RMC takes on everything a managing agent would normally handle:

Financial management — preparing annual budgets, issuing service charge demands, collecting payments, chasing arrears, maintaining accounts, and filing with Companies House. Service charge demands must comply with Section 21B of the Landlord and Tenant Act 1985, which requires a summary of rights and obligations to accompany every demand.

Compliance and safety — ensuring fire risk assessments, electrical testing (EICRs), gas safety checks, asbestos management, lift inspections, and water hygiene assessments are all carried out on schedule. Each has its own inspection cycle, certificate requirements, and potential for remediation work.

Maintenance and repairs — organising routine maintenance, responding to repair requests, managing contractor relationships, and planning major works. For works above certain thresholds, Section 20 consultation procedures must be followed, which involve formal notice periods and leaseholder consultation.

Administration — maintaining the building's insurance, handling new purchaser enquiries, processing share certificate transfers, keeping company records up to date, and responding to requests under the Landlord and Tenant Act.

Communication — keeping residents informed about decisions, works, finances, and compliance status. Leaseholders have the right to inspect accounts and request information about service charges.

The legal responsibilities you're taking on

Self-managing RMC directors often don't realise the extent of their personal legal exposure:

Company law obligations — as directors of a limited company, you must comply with the Companies Act 2006. This includes filing annual accounts and confirmation statements, maintaining a register of members, and acting in the best interests of the company.

Leasehold law — the lease is the governing document. Service charges must follow the apportionments set out in the lease. Failure to follow correct procedures — even with good intentions — can result in charges being unrecoverable.

Health and safety — the Regulatory Reform (Fire Safety) Order 2005, the Health and Safety at Work Act 1974, and various regulations around gas safety, electrical safety, asbestos, and lift maintenance all apply to the common parts of residential buildings.

Personal liability — the Building Safety Act 2022 introduced personal accountability provisions. Directors who fail to ensure proper compliance management can face personal liability, enforcement action, and in serious cases, criminal prosecution.

Common pitfalls of self-managed blocks

Having worked with self-managing RMCs, several problems come up repeatedly:

Service charge arrears spiral — it's difficult to take legal action against a neighbour, so arrears cases often drag on. But failing to pursue arrears is itself a breach of the directors' duty to the company and other leaseholders.

Compliance gaps — without a systematic tracking process, inspection deadlines get missed. A fire risk assessment expires without being reviewed. An EICR falls due and nobody notices until the insurer asks for it. These gaps create both legal risk and potential for enforcement action.

Inadequate record keeping — when an incoming director, a leaseholder tribunal, or a regulator asks to see the history of decisions and actions, there's nothing to show. Minutes, financial records, compliance certificates, and contractor correspondence often live in a mix of personal email accounts, shared drives, and filing cabinets.

Burnout and succession — self-management works when you have motivated, capable directors. But people move, lose interest, or simply run out of time. When one or two key people step back, the block can quickly fall behind on obligations.

Disputes between residents — without a managing agent to act as a neutral party, disputes about noise, pets, parking, or maintenance priorities can become personal. Directors who are also residents find themselves in an uncomfortable position.

Making self-management work

If you've decided that self-management is the right choice for your block, here's how to set yourself up for success:

Read and understand your lease — the lease governs service charge apportionments, maintenance obligations, permitted use, and dispute resolution. Don't assume you know what it says. Get proper legal advice if anything is unclear.

Set up proper financial processes — open a dedicated client bank account, maintain clear ledgers, issue service charge demands on time, and have your accounts prepared annually by a qualified accountant. Don't mix block funds with personal accounts.

Create a compliance calendar — list every compliance obligation for your building, with inspection due dates, certificate expiry dates, and responsible parties. Review it monthly at minimum.

Keep proper records — minutes of directors' meetings, AGM records, financial statements, compliance certificates, contractor quotes, and decision rationale should all be documented and accessible to any director who needs them.

Build a contractor network — identify reliable contractors for routine maintenance and emergency repairs. Get multiple quotes for significant work. Follow Section 20 procedures for major works.

Communicate with residents — regular updates on finances, maintenance, and compliance build trust and reduce disputes. Consider using a noticeboard system or regular newsletters.

Know when to get professional help — self-management doesn't mean doing everything yourself. Engage solicitors for arrears recovery and tribunal matters. Use qualified fire risk assessors, electricians, and gas engineers for compliance work. Consider a part-service arrangement where a managing agent handles just the financial administration.

The role of technology

One of the biggest differences between a professional managing agent and a self-managing RMC is systems. Managing agents have software for compliance tracking, service charge accounting, document management, and communication. Self-managing directors typically rely on spreadsheets, email, and shared folders.

This gap is closing. Purpose-built platforms now exist specifically for the needs of self-managing blocks — compliance tracking with automated reminders, case management for maintenance issues, document storage linked to the relevant building and compliance category, and communication tools that keep residents informed without directors having to manage individual emails.

Block Guardian was designed for exactly this use case. If you're self-managing and want to get compliance, communication, and documentation under control in one place, start a free 45-day trial and see how it works for your block.