Case Studies
Leeds, LS16
Block Buddy has managed this gated development of over 100 apartments since January 2023. The development extends across six blocks and includes the conversion of a former mill.
We took over the site from one of the largest managing agents in the country. It was apparent during our early discussions with the management company that there were fundamental issues with the development. The finances were in a poor position as funds were low and debt high, and sinking funds were not at the level you would expect. In addition, the development looked tired and was in need of improvement.
The development also had 13 different bank accounts in operation at the time of our involvement which was extremely difficult to manage. We have now resolved this and the development now has just two operational bank accounts.
The site is close to the city centre, however leaseholders were concerned that their investments were suffering because of the condition of the development. This was apparent by the fact apartments were being advertised for sale or rent at considerably lower levels than others nearby.
Sale and rental levels are improving, and we believe this is because of the improvements we have introduced on site.
The most important thing we did was to take control of the finances. Lack of available cash strangles developments as repairs and maintenance can’t be completed because contractors and suppliers can’t be paid. This in turn discourages leaseholders from paying as they don’t feel they should pay their service charge when issues aren’t being resolved. As a result, the situation spirals out of control.
It was important to make changes, but given the lack of funds and high debt, it was also important to consider both the extent and the speed of the changes.
Block Buddy considered the role of the on-site caretaker as a priority, and we concentrated our early efforts on restructuring the caretaker’s role, including his working hours and the hours he works each day.
The reason we did this was because the caretaker needed to be on site at key points throughout the week. For example, to effectively manage matters such as bin collections, contractor attendance and health & safety operations, including fire alarm tests and routine inspections.