What does a managing agent do?

A managing agent runs a block of flats or an estate day to day on behalf of whoever is legally responsible for it. That is usually the freeholder, a Residents’ Management Company (RMC) or a Right to Manage (RTM) company. The agent works to the lease and the law, and is paid a management fee that forms part of the service charge.

Leasehold in two minutes

Almost every flat in England and Wales is sold on a lease. You buy the right to live in the flat for a fixed number of years. You do not buy the building. The structure, roof, stairs and grounds usually stay with the landlord, who has to look after them and insure them.

The lease is the contract between you and the landlord. It says what is yours and what is shared, what services the landlord must provide and what you must pay towards them. Everything a managing agent does starts there, which is why our first answer to many questions is ‘let us check the lease’.

Who the agent works for

The agent is appointed by the person or company that has to deliver the landlord’s services under the lease. On many developments that is a company owned by the flat owners themselves, either an RMC or an RTM company.

The agent’s duties come from a contract called the management agreement, not from an Act of Parliament. The agreement lists what the client has asked the agent to do and what is charged as an extra. The client keeps the final legal responsibility for the building. In a company run by residents, the directors set the policy and the agent carries it out. That is why you will sometimes hear us say that we need to ask the directors.

What the job covers

• Money. Preparing the yearly budget, sending service charge demands, collecting payments and chasing arrears, paying contractors, and producing the year-end service charge accounts.
• Safety and compliance. Arranging fire risk assessments, asbestos and legionella checks, electrical testing, lift examinations and the other inspections the law requires in shared areas.
• Repairs and maintenance. Dealing with day-to-day repairs, running contracts such as cleaning and gardening, inspecting the site and handling buildings insurance claims.
• Major works. Planning larger projects, running Section 20 consultation and working with surveyors and contractors.
• Leaseholders and residents. Answering questions, replying to solicitors when a flat is sold, and handling requests for consent to sublet, keep a pet or alter a flat.
• Supporting the directors. Advising on landlord and tenant law, attending meetings, reporting on finances and maintenance and, where agreed, acting as company secretary.

Where your money is held

Service charge money does not belong to the agent or the landlord. By law it is held on trust for the leaseholders who paid it. Professional rules require it to be kept in a client account, apart from the agent’s own money. At Butlin Property Services, client funds are held in a dedicated client trust account with Barclays Bank and are checked every year by accountants.

What an agent cannot do

• Change the lease, or spend service charge money on something the lease does not allow.
• Overrule the client. If the directors or freeholder give a lawful instruction, the agent follows it.
• Settle disputes between neighbours beyond what the lease provides for.

Choosing a managing agent

Property management is not yet regulated by law, so anyone can set up as an agent. In September 2026 the government confirmed that it will introduce an independent regulator for property agents, including managing agents, who will need a licence and appropriate qualifications to operate. No start date has been set.

Until then, these are the things worth checking:

• Membership of a government-approved redress scheme. This is already a legal requirement.
• Property managers with recognised qualifications, such as those awarded by The Property Institute (TPI) or RICS.
• Client money held in a separate, clearly named client account and independently checked.
• A published complaints procedure.
• A clear management agreement with a list of any extra charges.

Butlin Property Services has managed blocks and estates from Leicester since 1997. We are a member of The Property Ombudsman and our property managers are qualified through TPI. If you are a director or freeholder thinking about a change, our guide to changing managing agent explains how a handover works.

This article is general guidance based on the law in England in October 2026. It is not legal advice. Your lease or transfer deed always comes first, so check it, and take professional advice on anything in dispute. You will find more answers in our FAQs.