Manchester, Luton, Preston, Liverpool, Midlands | 0333 344 4996

Do you know the real cost of your building management services?

Do you know the real cost of your building management services?
24th January 2025 Editor

Do you know the real cost of your building management? Image depicts a pink piggy back peaking up from the bottom of the screen, against a pale blue background.

When considering a change in managing agent or taking the step to outsource building management for the first time, cost naturally becomes a significant factor in the decision. After all, it’s a straightforward metric to compare – or at least it seems so…  

But is it really as simple as it looks? Clear Building Management provides the answers.

At first glance, price might seem like the easiest detail to evaluate. However, the true cost of managing your building can often be hidden behind headline figures, creating an incomplete picture of the financial commitment involved.

The hidden layers of building management fees

Have you ever booked a budget airline flight that appeared to be a bargain, only to watch the costs stack up as extras were added for selecting a seat, checking in luggage, or even for a cup of tea? The initial price seemed appealing, but by the end of the process, you were perhaps left wondering if another airline might have offered better overall value.

The same principle can apply to building management services. A low per-unit fee may look attractive, but once additional charges, commissions from suppliers, or other hidden costs are factored in, the price you end up paying could be far higher than expected, and the lack of transparency around these additional costs can make it difficult to hold the managing agent accountable.

Quality suffers when pricing is unrealistic

If a managing agent offers what seems to be an incredibly low fee, consider what that might mean. In some cases, they may have underestimated the resources needed to manage your property effectively. This could lead to reduced service levels, where the agent struggles to deliver on promises due to insufficient funds.

In more concerning situations, a low initial quote might be a deliberate strategy to secure a contract. The managing agent then compensates through murky practices like commissions from suppliers or inflated charges for maintenance and repairs, ultimately leaving leaseholders paying the difference.

Even managing agents with in-house maintenance teams aren’t immune to scrutiny. Without transparency, it’s hard to compare costs or ensure work is necessary and performed to a high standard. This lack of clarity can result in higher expenses and frustration for leaseholders.

What should leaseholders and RMC directors look for?

When considering a change in managing agent, transparency is key. A managing agent’s total fee should be clear, fair, and honest. At Clear Building Management, we believe in open pricing that doesn’t rely on hidden costs or inflated commissions. This approach allows us to focus on delivering quality service and value for money.

For example, a reputable managing agent will often achieve significant savings for leaseholders by renegotiating supplier contracts. However, if the agent benefits from commissions, there’s less incentive to secure the best deal on your behalf. True transparency removes this conflict of interest and ensures your money works harder for you. 

Making an informed decision

When choosing a managing agent, it’s important to look beyond the headline cost. Ask for a detailed breakdown of fees, question any areas that seem unclear, and consider the long-term impact on service quality and overall costs. By focusing on transparency and value rather than the lowest quote, you’ll have a better chance of securing a managing agent who can truly meet your needs. For more information, check our complete checklist of questions to ask your new managing agent.

At Clear Building Management, we’re committed to providing transparent, high-quality service that prioritises the needs of leaseholders and RMC directors.

Get in touch today to find out how we can help you achieve better building management.

Facebooktwitterredditpinterestlinkedinmail

Subscribe

    Sign up to our newsletter to recieve all our latest news and updates

    *For those at our current sites, there’s no need to sign up – you can view news and updates via the Crystal platform.