Introduction

If you live in a block of flats, you’ve probably groaned at the sight of your latest service charge demand. Many leaseholders think, *“Surely we can do this better ourselves?”* On paper, self-managing your block sounds like a great idea. No managing agent’s fees, more control, and the comfort of knowing money is spent wisely.

But here’s the reality: managing a block is just like running a small business — one that comes with complicated landlord and tenant laws, company rules, and the potential for neighbourly fallout if things go wrong.

So, is self-management worth the hassle? Let’s break it down.

What Legal Pitfalls Do Leaseholders Face When Self-Managing?

Here’s the first thing to know: the law around leasehold which governs flats in England and Wales isn’t simple. You’ll need to juggle:

- Landlord and Tenant Acts – say service charges must be “reasonable” and spell out how to consult everyone if you’re doing major works (that’s the famous Section 20 process – which is up to 3 x 30 day stages of consultation), and sets penalties if you don’t serve the service charge accounts on the leaseholders on time (forget to serve a S20B Notice at your peril).
- Right to Manage (RTM) – RTM falls out of the Commonhold & Leasehold Reform Act 2022 and enables leaseholders set up a company to take over management from the freeholder, but you have to follow the rules to the letter. One missed step and the freeholder will deny your claim.
- Company law – most leaseholder controlled blocks of flats run their block through a limited company. That means directors, annual filings, proper meetings, and actual liability if things aren’t done correctly.

It’s a lot. Many residents who go down the self-management route end up feeling overwhelmed by all the red tape.
Ask any leaseholder what annoys them most and the answer is usually the same: “mystery charges”, not understanding what is being spent and why, or not understanding the health and safety legislation which means some things like fire risk assessments are actually law. Transparency is a huge issue. That’s why new laws are forcing landlords and agents to:
- Produce service charge accounts in the correct form.
- Show receipts and invoices (if you don’t a section 22 Notice may be served against you).
- Make documents available to service charge payers.

This is good news for leaseholders — but if you’re running your own block, it also means you too have to meet those standards even if you do not have full back office support! So it is certainly not always easy without an accountant or a professional agent keeping track.

How Can Leaseholders Challenge Unfair Service Charges?

If you think your service charge is unreasonable, you don’t just have to grit your teeth and pay. Leaseholders have the right to challenge charges at the First-tier Tribunal (Property Chamber). The tribunal can:
- Decide if a service charge item is fair and reasonable,
- Decide if a particular cost is lawfully demanded,
- Demand the landlord (or your own management company!) produces proper evidence of costs.
- Strike out items if paperwork is wrongly served or missing.

Do the New Leasehold Reforms Make Self-Management Easier?

In some ways, yes. The Leasehold and Freehold Reform Act 2024 is shaking things up. It claims to be:
- Making service charge bills clearer.
- Simplify lease extensions and collective freehold purchases.
- Stop landlords from hiding behind technicalities.

But let’s be honest — the reforms don’t magically make self-management simpler. They give leaseholders stronger tools, but someone still has to do the accounts, deal with arrears, organise insurance, and keep Companies House happy.

What Everyday Challenges Come with Running Your Own Block?

Here’s where it gets really tricky. Even if you know the law, you’ve still got the human side to deal with:
- Chasing neighbours for money – nobody likes sending reminder letters to the guy upstairs.
- Disputes – from noisy pets to parking rows, someone has to enforce the lease rules.
- Time pressure – balancing work, family life, and running a building isn’t easy.
- Risk – if you forget to insure the building or miss a health and safety obligation, you could personally be on the hook.

Self-management might save money in theory, but it can also cause stress, arguments, and sleepless nights.

So... Is Self-Management Right for Your Block?

For small, friendly blocks with only a handful of flats, self-management can work if everyone’s willing to chip in. But for most leaseholders, it’s like taking on a second job without the pay.

That’s why many blocks eventually decide to bring in a professional managing agent or use a hybrid service — something that gives them control, but without all the hassle of day-to-day admin and legal compliance.