As the voice of fellow leaseholders and custodian of a residential block, Residents’ Management Company (RMC) directors are tasked with a wide range of duties, particularly regarding communal services and the legal rights of leaseholders.
Understanding these responsibilities is about more than just “good practice” – it is essential for the smooth running of your building (and for staying on the right side of the law).
Here we will provide an outline of the legal duties RMC directors take on when it comes to communal maintenance, lease obligations and leaseholder rights. We will also explore how non-compliance can create serious issues, and where to find help when you need it.
Understanding Your Role as an RMC
An RMC is typically established to take over the management of a leasehold block of flats from a landlord or managing agent. Directors of an RMC are usually leaseholders themselves and act as a collective, decision-making body for the property.
While this is a voluntary role, the responsibilities it carries are bound by law and must be taken seriously.
Communal areas and facilities (stairwells, gardens, lighting, lifts, entry systems, bin stores etc.) are the shared responsibility of the RMC. Directors are legally obliged to ensure these spaces are:
- Maintained in a safe and hygienic condition
- Regularly inspected and serviced
- Compliant with health and safety regulations
- Covered by appropriate insurance policies
This means arranging for routine services such as cleaning, groundskeeping, electrical inspections, fire risk assessments and lift maintenance. It is important to schedule these works consistently and keep records of inspections, contracts and repairs.
Failure to maintain these areas could result in breaches of duty under the lease and under common law. In severe cases, an accident in a communal area could even lead to legal action and personal liability.
If you are unsure where to start, visit Block in a Box – a valuable resource of trusted providers who specialise in maintenance and support services for blocks of flats and apartments.
Obligations Under the Lease
Leases are legal documents that govern the relationship between leaseholders and the RMC. It outlines what each party is responsible for and sets out the framework for managing the building.
Typically, the lease will:
- Define the parts of the property considered communal
- Require the RMC to maintain those areas
- Outline how service charges are calculated and collected
- State how major works should be handled
It is essential that RMC directors understand the terms of the lease. Any action or inaction that contradicts the lease could lead to complaints, tribunal applications, or court proceedings. If in doubt, consult a solicitor familiar with leasehold property law.
Landlord and Tenant Act 1985
This piece of legislation sets out key obligations for RMCs and managing agents. Key sections of note include:
- Section 11: Requires landlords (and therefore RMCs in a management role) to keep the structure and exterior of the building in repair.
- Section 20: Sets out consultation requirements for major works costing over a certain threshold per leaseholder.
- Section 21 and 22: Give leaseholders the right to request a summary and inspection of accounts relating to service charges.
Breaching these statutory obligations can have serious consequences, including financial penalties and the invalidation of service charge demands.
Service Charges and Transparency
One of the most common causes of leaseholder disputes is confusion or dissatisfaction around service charges. As an RMC, you have a legal and moral duty to provide annual budgets, issue service charge demands in accordance with the terms of the lease and to offer a breakdown of costs.
Being open and communicative with leaseholders helps build trust and reduce the likelihood of disputes. It also demonstrates that you are fulfilling your fiduciary duties under the Companies Act 2006.
Health and Safety Compliance
RMCs are responsible for ensuring that communal areas comply with relevant health and safety regulations. These include:
- Fire safety (including risk assessments, alarms and clear evacuation routes)
- Gas and electrical safety
- Legionella control in water systems
- Asbestos management (where relevant)
Neglecting health and safety responsibilities can lead to enforcement action by the local authority or the Health and Safety Executive.
The Risks of Non-Compliance
Ignoring legal obligations is not just risky in terms of the health and safety of the building’s leaseholders. Consequences can include:
- Legal action from leaseholders
- Fines or penalties from regulatory bodies
- Invalidated insurance policies
- Damage to the reputation of the RMC and its directors
- Personal liability in serious cases of negligence
How to Get Support
The good news? RMC directors do not need to go it alone. With the right knowledge, support and professional input, the risks are entirely avoidable.
Support is available to help you stay compliant, efficient and resident-friendly. If you need help sourcing reliable contractors, managing service charges, or arranging inspections, head over to Block in a Box. Their network of trusted providers makes it easier to manage your building professionally and with peace of mind.
Final Thoughts
Being an RMC director comes with legal responsibilities that extend far beyond a neighbourly favour. From maintaining communal areas to safeguarding leaseholder rights, the role requires diligence, transparency and an understanding of key legal frameworks.
By embracing best practices and working with trusted professionals, RMCs can manage their buildings more effectively, keep residents happy and avoid costly mistakes.
Do not wait for something to go wrong – get the right support in place now and ensure your building runs like clockwork.
