# Managing agent or self-manage? When to hire help

> A block run by leaseholders can self-manage, hire a managing agent to do everything, or mix the two by paying for specific jobs such as accounts or major works. Self-management usually costs less and gives you more control, but the directors' time and attention is the price. Hiring an agent makes sense when no one has the time, the building is large or complex, or major works are coming, and the company stays legally responsible either way.

**Key facts**

- The company (RTM, RMC or freehold company) stays responsible whether or not it hires an agent.
- Managing agents in England must belong to a government-approved redress scheme.
- An agent's contract for more than 12 months may need Section 20 consultation first.
- A hybrid approach (self-manage day to day, buy in accounts or major-works help) suits many small blocks.
- To change agent, follow the contract's notice period and plan the handover of records and money.

## Three ways to run a block

|                        | Self-manage      | Hybrid                                                                 | Full managing agent                         |
| ---------------------- | ---------------- | ---------------------------------------------------------------------- | ------------------------------------------- |
| Who does the work      | The directors    | The directors, plus paid help for chosen jobs                          | The agent, overseen by the directors        |
| Typical bought-in help | None             | Accountant for year-end accounts; surveyor for major works; bookkeeper | Everything, from budgets to repairs         |
| Cost                   | Lowest cash cost | Pay only for what you use                                              | A yearly fee, usually per flat, plus extras |
| Control                | Full             | Full                                                                   | Shared                                      |
| Directors' time        | Highest          | Medium                                                                 | Lowest                                      |

Whichever you choose, the **company remains responsible** for meeting its obligations under the leases and the law.

## Self-managing works best when

- the block is small and fairly simple (few shared services, no lift);
- at least two people are willing to be directors and share the work;
- someone is comfortable with simple bookkeeping and keeping records;
- there are no large or complex works on the horizon.

It helps to divide the jobs: one director for money (budgets, bills, bank), one for the building (repairs, safety checks, insurance), and both for decisions.

## Hiring an agent makes sense when

- no one has the time, or the volunteers have burned out;
- the building is large, mixed-use or has lifts, plant or complex services;
- major works are coming and you want professional project management;
- relationships between neighbours make it hard for a resident to chase arrears.

You can also hire a surveyor or project manager just for a big job, then go back to self-managing.

## Choosing an agent

- **Ask for a written proposal** covering exactly what's included and what costs extra (for example, Section 20 consultations, sale packs, out-of-hours calls).
- **Check the redress scheme.** In England, anyone doing property management work as a business must belong to a government-approved redress scheme.
- **Ask how they hold your money**: in an account in whose name, and whether it's protected.
- **Ask for references** from blocks of a similar size, ideally other leaseholder-run blocks.
- **Ask how they follow the RICS Code**, which sets the expected standard for anyone managing residential blocks.

## The contract

- Watch the **length**. A contract for more than 12 months is a [qualifying long-term agreement](https://runyourblock.co.uk/glossary/qualifying-long-term-agreement), and may need [Section 20](https://runyourblock.co.uk/glossary/section-20-consultation) consultation first if any leaseholder would pay more than £100 a year towards it. Many blocks choose 12 months with a renewal option.
- Check the **notice period** and how either side can end it.
- Agree what happens to **records, money and contracts** at the end.

## Changing agent

1. Read the contract's termination terms and give notice in writing.
2. Choose the replacement, or decide to self-manage.
3. Agree a handover date and a list of what must be handed over: leases, accounts, the bank balance and reserve, contracts, safety records, insurance, keys.
4. Tell leaseholders the new arrangements and payment details by letter, with a warning that bank details won't change by email alone.

If the freeholder appointed the agent and leaseholders have no say, the routes are the [right to manage](https://runyourblock.co.uk/guides/right-to-manage/what-is-right-to-manage), buying the freehold, or, where management is seriously failing, an application to the tribunal to appoint a manager (Landlord and Tenant Act 1987, Part 2).

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This is general information, not legal advice. Every building and lease is different. For free initial advice, contact LEASE (The Leasehold Advisory Service): <https://www.lease-advice.org/>

## Frequently asked questions

### Do we need a managing agent for a small block of flats?

No. There's no legal requirement to use one. Many small blocks self-manage successfully, often paying an accountant for the year-end accounts and getting professional help for major works.

### What's the difference between a managing agent and a management company?

A managing agent is a business hired to do the management work. A management company (such as an RTM company or residents' management company) is the company responsible for managing the building, usually owned by the leaseholders. The company can hire an agent, but it stays responsible.

### How do we change our managing agent?

If your company appointed the agent, give notice under the contract, appoint the replacement (or decide to self-manage), and agree a handover date for records, money and contracts. If the freeholder appointed the agent and leaseholders have no control, the options are the right to manage, buying the freehold, or in serious cases asking the tribunal to appoint a manager.

## Sources

- [Enterprise and Regulatory Reform Act 2013, s.84 (property management work)](https://www.legislation.gov.uk/ukpga/2013/24/section/84)
- [Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc) (England) Order 2014, art 5](https://www.legislation.gov.uk/uksi/2014/2359/article/5)
- [Landlord and Tenant Act 1985, s.20ZA (qualifying long-term agreements)](https://www.legislation.gov.uk/ukpga/1985/70/section/20ZA)
- [RICS Service charge residential management code](https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/real-estate-standards/service-charge-residential-management-code)
- [LEASE: Using a managing agent or self-managing](https://www.lease-advice.org/building-management/right-to-manage/running-a-right-to-manage-company/using-a-managing-agent-or-self-managing/)

## Related guides

- [Your first 90 days running the block](https://runyourblock.co.uk/guides/running-your-block/first-90-days)
- [Section 20 consultation: a step-by-step guide for self-managed blocks](https://runyourblock.co.uk/guides/running-your-block/section-20-consultation)
- [What is the right to manage (RTM)?](https://runyourblock.co.uk/guides/right-to-manage/what-is-right-to-manage)
- [Directors' duties in an RTM company, RMC or freehold company](https://runyourblock.co.uk/guides/your-company/directors-duties)

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Last reviewed 22 October 2026 by Phil, founder. This is general information, not legal advice. For free, independent advice on leasehold law, contact LEASE: https://www.lease-advice.org/

Source: https://runyourblock.co.uk/guides/running-your-block/managing-agent-or-self-manage