For many Residents’ Management Company (RMC) directors, balancing the books is a constant. Rising construction costs, economic uncertainty and unexpected issues can put pressure on even the most carefully planned budgets.
So how do you make smart, strategic decisions when funds are tight? How do you ensure legal compliance and resident satisfaction without overspending?
In this article, we will be explaining some practical ways to prioritise repairs, communicate effectively with leaseholders and make the most of your budget. We will also touch on funding options and how using a risk matrix can support sound decision making.
Step One: Understand What is Legally Required
Before anything else, it is important to understand your legal obligations as an RMC. Certain works are not optional. These include anything that relates to health and safety, fire compliance and the repair of communal areas outlined in the lease.
Failing to act on legally required works can expose directors to liability and compromise the safety of residents. It can also breach the lease terms, leading to complaints or tribunal action.
Examples of essential, legally required repairs might include:
- Fire alarm or emergency lighting maintenance
- Repairing unsafe staircases or balustrades
- Replacing faulty entry systems that compromise security
- Rectifying leaks that are damaging multiple units
Start by identifying these non-negotiables. They should always sit at the top of your priority list.
Step Two: Survey and Categorise the Work
Next, carry out a visual inspection of your building or commission a condition survey. Once you’ve got a list of required works, categorise them into three main areas:
- Urgent & essential: Anything that affects safety, structural integrity or legal compliance.
- Medium term: Works that do not pose an immediate risk but may become costly if delayed (e.g. roof deterioration, cracked render).
- Desirable or cosmetic: Improvements like redecorating common areas or upgrading lighting.
A professional surveyor or managing agent can help you accurately assess the lifespan of materials and highlight when ‘watch list’ items are likely to become urgent.
Step Three: Use a Risk Matrix to Prioritise
A risk matrix is a simple but powerful tool to help make decisions objectively. It allows you to assess each repair based on two main factors:
- Likelihood of failure or deterioration
- Impact if the failure occurs
Each item is scored, and those with high likelihood and high impact rise to the top. This helps ensure your limited budget is spent where it matters most.
For example:
- A leaking flat roof over a top floor communal hallway scores high on both impact and likelihood.
- A slightly scuffed internal wall in the bin store scores low on both fronts.
Using a matrix helps justify your decisions to leaseholders and shows that your approach is structured and fair.
Step Four: Plan Phased or Grouped Works
If your budget will not stretch to everything that needs doing, consider phasing the work. Focus first on the most urgent elements and schedule the rest over the next one to three years.
Another cost saving tactic is to group similar works together. For example, if you are repairing brickwork on one elevation, it may be more cost effective to do all facades at once rather than repeating scaffolding costs later.
Working with your contractor or managing agent to package works together can help reduce labour and access costs.
Step Five: Explore Funding Options
If essential repairs exceed your available funds, you may need to explore additional funding. Options include:
- Using the sinking fund if the works are long term and included in your reserve plan.
- Issuing a service charge demand. Provided your lease allows it, you may be able to raise a one off payment for major works.
- Some providers allow costs to be spread across a fixed period so you can enter into a staged payment agreement with contractors.
- In certain circumstances, loans may be available to RMCs for urgent or large scale works, though this does involve leaseholder consultation.
Always check your lease and involve your managing agent before deciding on funding routes. Transparency with leaseholders is key.
Step Six: Communicate Clearly and Early
One of the biggest frustrations for leaseholders is surprise charges or unexplained delays. Regular, open communication helps build trust.
Keep residents informed by sharing maintenance schedules and cost breakdowns, explaining why some works are prioritised over others, outlining funding needs and timescales and inviting feedback where appropriate.
You can use AGMs, newsletters and noticeboards to keep leaseholders in the loop. Many will appreciate the complexity of decision making when given a clear explanation.
Final Thoughts
When budgets are limited, tough choices may have to be made, but that does not mean compromising on safety or quality. By following a structured approach, assessing risks objectively and keeping communication open, RMCs can make confident decisions that protect their buildings and support resident satisfaction.
Prioritising repairs is not just about what needs doing now, it is about building a long term strategy that balances today’s resources with tomorrow’s responsibilities. Whether you are dealing with peeling paint or failing roofs, the key is to be proactive, transparent and strategic. Because with the right planning, even a tight budget can go a long way.
Head to Block in a Box to find any and every professional you could need to maintain and repair your building, compliantly and on budget.
