How to Reduce Running Costs for Your Residential Block in the new year

How to Reduce Running Costs for Your
Residential Block in the new year
Block Management Software
As any block manager knows, it can be very tricky getting the best value for your service
charge. Running costs, especially in old residential blocks, can quickly be depleted leaving you
with less profit to invest in your business in the long term. The savvy block manager will always
be looking at ways to reduce the running costs in a residential block.
Estate Management Software
But finding the compromise between what your residents expect and how you can save costs
can be an art form. You don’t want to cut corners, of course, and you still want to give your
estate residents a top tier service. On top of this, leaseholders often want more for less, and as
a block manager, you’re usually under constant pressure to justify your service costs.
Property Management Software
Reducing overheads and running costs in your residential management company can be done,
but sometimes thinking outside of the box is what’s needed.
Service reviews
Many block managers have the same team in to do a job for many years. It might be a trusted
gardener or a maintenance firm who have been with you since the company was formed.
It’s often worth taking a look at your service agreements and even shopping around to see if you
can get a better deal. Take a look at the contracts for each of your suppliers to see if there are
any outdated charges or opportunities for streamlining the service provision.
Insurance
Of course, having insurance is a necessity. But many block management firms are guilty of
having an insurance cover that goes above and beyond what is needed, and paying the
difference. For example, some risks are covered under the communal charge, and also by
adjusting the excess on some risks you can really get more for your money with insurance.
Next time your business and buildings insurance is up for renewal, consider using an
independent insurance broker to get you the best deal.

Overheads
As with any business, the biggest costs for residential management companies are often in
staffing. But, with the improvements in technology available for block management, it is
becoming easier to streamline many of the processes and enable effective management by
smaller teams.
For example, with organising your concierge team, planning your next property inspection or
filing your paperwork, using property management software can really streamline the whole
process. The cost of setting up and operating software is always much cheaper and more costeffective
than hiring a new member of staff and can even make your current staff more effective
at their jobs.
Utilities
Falling under the banner of overheads, looking at your utility providers can also be a great way
to reduce the day to day running costs in your residential block. It’s been widely proven that
shopping around for utility providers on an annual basis can be a great way to save a
substantial percentage of your service charge.
Timely response to issues
Making sure you respond as efficiently as possible to maintenance issues can be a huge part of
minimising your running costs. For example, water leaks or external damage can cause bigger
problems to the structure of the property that can quickly escalate. A simple lightbulb that is out
of action on a staircase can result in a trip or fall and a whole mountain of additional problems
later on.
Logging and responding to issues that are reported is part and parcel of the block managers
remit.
Project management costs
Most residential blocks will have a major renovation project at least every couple of years. From
roofing, painting or cladding, to upgrading boilers or wiring; these projects can obviously be one
of the bigger outlays for the residential management company to facilitate.
With big projects, the costs can be managed by choosing the best team for the job. And, this
isn’t always the lowest bid. Research companies to see if they have a track record of going over
budget or poor management before you commit.

Of course, you’ll need to follow Section 20 processes correctly, which also involves informing
the residential leaseholders and tenants. A great way to automate this is by using property
management software, which ensures that lessees and residents receive information in a timely
fashion. Bear in mind that failure to follow Section 20 properly can incur fees of £250 for major
works and £100 for long term agreements, for each lessee.
Managing paperwork and data
The paper trail created as part of managing a residential property can be quite long. And with
the advent of GDPR, keeping information secure is no longer a luxury, but something that is the
right of every resident and contractor.
The best solution for managing the mountains of paperwork generated is to use a property
management software solution. It’s also a good way to ensure that all members of your team
can find what they need without needing to look through folders on a computer or flicking
through a filing cabinet.
Using cloud-based software also means that information is available to all members of your
team, without needing to come back to the office. This can be invaluable when out on an
inspection, or when conducting a residents meeting.
Modern solutions to common problems
Residential property management software is usually created by people who understand the
needs of block management with unique solutions to common problems. Keeping track of
everything from visitors or package deliveries, or logging maintenance issues are all part of a
day's work for most residential block managers.
Lobital is software made for residential management companies. We understand what it takes
to run property and we know that delivering value for your service charge is what will help you
keep and win more business.
Concierge Software
Building Management Software
Parcel Management Software
Key Management Software
Visitor Management Software
Online Resident Portal Software
Building Maintenace Software