Your first 90 days running the block

However you took over (the right to manage, buying the freehold, a developer handing over to residents, or leaving a managing agent), the first three months follow the same pattern: make it safe, make it lawful, then make it routine.

Before day one

If you know the takeover date in advance (for example, the RTM acquisition date), use the weeks before it:

• Ask for the records and money. Send the old manager a written request listing what you need. For an RTM company, this is your s.93 request. See Handover from the old manager.
• Line up buildings insurance to start on the day, if insuring passes to you. See Buildings insurance.
• Choose a bank. Open an account in the company's name for the service-charge money, with at least two directors as signatories.

1. Days 1 to 30: safe and in touch

   • Insurance: confirm the building policy is in force, covers the full rebuilding cost and notes the company's interest. Arrange directors' and officers' and public liability cover for the company.
   • Introduce yourselves: write to every leaseholder (and occupiers, if you can) with the company's name and address, an address in England and Wales for notices, how to report repairs, an emergency contact, and when to expect the first bill. Say clearly that bank details will never change by email alone.
   • Fire safety: get the current fire risk assessment from the outgoing manager. If there isn't one, commission one now. Check escape routes are clear and the fire safety instructions are displayed.
   • Keys and access: collect keys, fobs and codes, and change codes if you're unsure who has them.
   • Essential services: put communal electricity, water, cleaning and any lift or alarm maintenance in the company's name, so nothing is cut off.

2. Days 31 to 60: records and money

   • Records: file the leases, plans, certificates, warranties and contracts you receive. Note what's missing and chase it.
   • Money: record what the old manager hands over, including any reserve. Keep service-charge money and reserves apart from any company income.
   • Leaseholders: build a list of every flat, its owner, their address for service, their share of the costs and any notices of sale or sub-letting.
   • Compliance: list every recurring legal or safety check (fire risk assessment review, fire alarm and emergency lighting tests, electrical inspection, asbestos, lift and gas checks where fitted) with its due date.
   • Company admin: update the registered office and directors at Companies House, check every director has verified their identity, and find out whether the company needs to pay the data protection fee to the Information Commission (ICO).

3. Days 61 to 90: your first bill

   • Budget: prepare a budget for the rest of the service-charge year using the lease's rules. See Budgets and service charges.
   • Share it: send the draft to leaseholders and invite comments. It builds trust and is widely regarded as good practice.
   • First demand: issue a lawful demand on the lease's payment dates. See What a service-charge demand must contain.
   • Accountant: appoint an accountant for the service-charge accounts and agree the year-end timetable.
   • Ways of working: agree how directors make and record decisions, who can approve spending, and how you'll handle complaints.

Mistakes to avoid

• Chasing old arrears. Service charges for costs incurred before an RTM takeover belong to the old manager.
• Mixing money. Service-charge money is held on trust. Keep it separate, and never in a director's personal account.
• Changing bank details by email. Fraudsters target leaseholders with fake "new bank details" emails. Tell residents you'll only ever change details by letter, and how to check.
• Signing long contracts. A contract of more than 12 months may need Section 20Section 20 consultationThe legal process of consulting leaseholders before carrying out works, or signing a contract of more than 12 months, that will cost any one leaseholder more than the set threshold. consultation first.
• Forgetting the clock. Costs must normally be demanded within the 18-month ruleThe 18-month rule (Section 20B)The rule that a leaseholder doesn't have to pay service-charge costs that were incurred more than 18 months before they were demanded, unless they were warned in writing within that time that the costs had been incurred and would be charged..

The Maple Court example

The fictional Maple Court RTM Company takes over on 14 June 2027. The directors had insurance quotes ready in May and the policy starts at midnight. On 15 June they post an introduction letter to all eight flats. By mid-July they have the fire risk assessment, the leases and £4,180 of uncommitted service charges from the old agent. They send a draft budget for the remaining nine months in August, and the first demand goes out for the September instalment date in the leases.

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This is general information, not legal advice. Every building and lease is different. For free initial advice, contact LEASE (The Leasehold Advisory Service): https://www.lease-advice.org/