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Module 1 - Lesson 2 - Communication Lines

Joe Mallon

Created on January 4, 2026

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Communication Lines

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Communication Lines in Leasehold Management

Leaseholders are technically renting the space within a flat from a freeholder. Nonetheless we see them has homeowners. The difference between them and sub tenants is that they usually have long terms (typically 100+ years) and lots of exclusive rights. Leaseholders are bound by the terms of their lease to pay service charges. It's' these service charges that fund maintenance and other essential work.

Although much of the conversation in block & estate management refers to blocks of flats, many homeowners who pay service charges are freehold house owners. Sometimes freehold house owners are situated on privately-owned land which requires service charges to maintain. Sometimes these homeowners share that land with leaseholders.

The term 'Sub-Tenant' typically refers to AST (Assured Shorthold Tenancy) tenants. These residents pay a sum of money (rent) to reside in a flat owned by a leaseholder. They have less exclusive rights than a leaseholder and do not pay towards service charges.

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Get to Know the People in the Sector

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House Owners

Leaseholders

Sub Tenants

Title

Title

Title

Write a brief description here

Write a brief description here

Write a brief description here

Property Managers have the duty to make decisions about how service charge money is spent in a block. They sometimes work directly for freeholders but more often work for managing agents. Managing agents act as the main representative of the client who may be an RMC or Freeholder.

Investor Landlords are usually Freeholders who own the relevant building.Some Freeholders have management control of their buildings. They may hire an agent to manage the block on their behalf.Others have no management control and instead make an income from ground rent and other sources. All this activity creates jobs for various types of staff.

RMCs (Resident Management Companies) are typically non-trading companies with a specific status at Companies House. They are led by elected homeowners who are usually volunteers. As volunteers it's very common for RMC Directors to hire a managing agent to act for them.

Maintenance contractors are typically contracted to a freeholder or RMC to provide physical services to a block or estate such as cleaning or building works. Very often it is a managing agent, represented by a Property Manager, that places contracts on behalf of a client. That's why Property Managers are often the ones giving contractors their instructions.

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Property Managers

RMC Directors

Investor Landlords

Maintenance ContractorStaff

Title

Title

Title

Title

Write a brief description here

Write a brief description here

Write a brief description here

Write a brief description here

Site staff are management staff that work directly on a specific block or estate. Site staff roles are incredibly diverse and include Concierges, Estate Managers, Caretakers, Maintenance Operatives, Cleaners and Gardeners. Onsite staff may work for a managing agent or directly for an RMC or Freeholder.

Housing Developers are vital to the correct functioning of the country. A healthy stock of new homes is needed to serve the needs of society. Housing developers build homes to service these needs. They typically work closely with managing agents to mobilise new developments when homes are ready for sale.

Like Maintenance Contractors, professional services providers typically deal with Property Managers. But the service is usually provided to an RMC or Freeholder. They provide services such as legal advice, surveying, brokering and recruitment advice which is funded by the service charge.

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More Key People in the Sector

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Site Staff

Professional ServicesStaff

Housing Developer Staff

Title

Title

Title

Write a brief description here

Write a brief description here

Write a brief description here

Fire brigade officers are responsible for fire safety enforcement and prevention within residential buildings. They assess compliance with fire safety legislation and have powers to take enforcement action. They also fight fires. In practice, they often engage with managing agents and contractors to review fire risk assessments, building information, and remedial works, particularly in higher-risk or complex blocks.

Housing Associations own and manage homes, often providing social and affordable housing alongside leasehold and shared ownership properties. In many blocks, they act as the freeholder or head landlord and are responsible for the long-term management of the building. In others their tenants share use of common areas with private tenants. This creates a need for collaboration with private managing agents.

Local Authorities (including Councils) own and manage housing stock, including mixed-tenure blocks. Housing officers, asset managers, and compliance teams typically work with managing agents and contractors to deliver repairs and statutory works. Some local authority staff may deal with managing agents and landlords in their capacity as enforcement officers for issues such as health & safety.

Increasingly, politicians are taking a more active role in estate management. Campaigns against unfair service charges have made the leasehold block sector a place where major parties have sought to win votes by claiming to be on the side of leaseholders. Local authority councillors, and sometimes MPs, may try to use their influence to bring about positive outcomes.

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Housing Association Staff

Politicians

Local Authority Staff

Fire Brigade Officers

Title

Title

Title

Title

Write a brief description here

Write a brief description here

Write a brief description here

Write a brief description here

Ownership Cascade: The Chain

Ownership Cascade: Communication Lines

Freeholder

Freeholder's Asset Manager

Resident Management Company (RMC)

RMC Board

RMC Shareholders

Block Managing Agent

Block Property Manager

Assistant Property Manager

Leaseholder

Leaseholder's Letting Agent

Sub-Tenant

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INTRODCUING

Communication Issues in Leasehold

Major Cause of Complaints Communication failures are responsible for 50% of complaints made to property managers, including slow response times and unclear messaging (The Property Ombudsman). Resident Satisfaction Over 60% of leaseholders say clear and regular communication is the most important factor in their satisfaction with managing agents (ARMA - Prior to becoming TPI). Financial Disputes 40% of leaseholders dispute service charges due to unclear communication or a lack of transparency in how funds are allocated (The Property Ombudsman).

overview

Understand the Communication Lines

It's important to understand the communication lines in which you operate. The legal structures surrounding leasehold block management can make this difficult because there are elements of complexity that may give rise to frustration. Stepping back and understanding where you are in the chain of communication is vital.