Every year, without fail, the envelope or email pings through with the words “End of Year Accounts” attached, and for many leaseholders, it’s met with a mix of curiosity, confusion, and the occasional sigh.
It’s completely understandable. Most people buy a home to live their life in peace, not to become experts in service charges, accruals, or reserve funds. Yet these accounts sit at the heart of how a building is run, and they say a lot about whether things are being managed with care, integrity, and a sense of partnership.
That word – partnership matters more than many give credit for. Too often, managing agents and leaseholders end up on opposite sides of the table, as though one must defend and the other must interrogate. But when you strip away the jargon, property management is simply a relationship between people who all want the same thing: homes that feel safe, finances that make sense, and a sense that everyone is being treated fairly.
I’ve spent enough time in this industry to know that accounts can be presented in a way that either invites clarity or dodges it. Leaseholders don’t need a masterclass in accounting; they need the confidence that the numbers reflect reality, that decisions were made sensibly, and that any surprises have a story behind them. When accounts land, you’re not just looking at money in and money out. You’re looking for signs of thoughtful management – how your agent planned, responded, communicated, and prioritised spending at your development.
The biggest clue in any set of accounts is whether the narrative behind the figures makes sense. Buildings can be unpredictable at times.
- Communal boilers break down at inconvenient times
- Insurance premiums jump unexpectedly
- Weather takes its toll
The accounts don’t need to pretend that these things didn’t happen; they simply need to show that when challenges appeared, they were handled with transparency and a level head. When you see a spike in spend or an unplanned cost, the real question isn’t “Why did this go wrong?” It’s “Did the agent explain it, manage it properly, and keep everyone informed without creating panic?”
Good management shows up in the way extraordinary costs were communicated, not hidden away for the accounts to reveal months later.
Then there’s the reserve fund. If the general account reflects the day-to-day running of the building, the reserve fund reflects its long-term health. Leaseholders sometimes worry that a healthy reserve fund means they’re being overcharged, but more often, it means the building is being future proofed rather than patched together. A well-run building rarely lurches from crisis to crisis. It plans, anticipates and smooths out the bumps instead of expecting people to find thousands of pounds at short notice. So, when you’re looking at that balance, the more useful question is whether it reflects the true state of the building. A tired roof with an empty reserve fund isn’t a victory for low service charges; it’s a warning that costs are being delayed rather than managed.
Another subtle sign of good management is the rhythm of the accounts themselves.
- Do they arrive on time?
- Do they feel carefully prepared rather than rushed?
- Do they reflect that invoices were checked and challenged where they needed to be?
Accuracy is a quiet form of respect. When accounts are consistent, complete, and delivered without a chase, it shows that the building and the people who live in it are taken seriously.
Of course, no set of accounts is perfect, and no managing agent gets everything right. But what leaseholders should look for is whether the accounts feel honest. You can tell a lot about an agent by the way they deal with the less flattering parts of the financial year. Anyone can present a tidy year with no surprises, it’s the tricky years that reveal character.
- Were errors owned?
- Were refunds processed promptly?
- Did they communicate early when issues were becoming clear, or did the accounts become the moment everything came to light?
This is also where collaboration really matters. Too many managing agents still operate from a place of defence, worried that leaseholders will push back or assume wrongdoing. However, most people simply want to understand what’s going on.
A collaborative approach isn’t about leaseholders micromanaging or agents having to justify their existence. It’s about openness and creating a culture where questions aren’t treated as accusations and explanations aren’t given reluctantly. When both sides feel able to talk openly, trust grows. And when trust grows, the building runs better, because decisions are made with shared understanding rather than suspicion.
If there’s one message we wish more leaseholders heard, it’s that the accounts belong to you. They are not a favour from the managing agent; they are your legal right and your financial record.
And if you ever feel unsure, you’re allowed to ask. You’re allowed to query a cost or request clarification. Doing so doesn’t make you difficult, it makes you engaged, and an engaged group of leaseholders is the best foundation any building can have.
Equally, as managing agents, we need to hold up our side of that relationship. That means resisting the instinct to hide complexity behind jargon and explaining things in plain English, even when the explanation is uncomfortable.
So, when your next set of accounts arrives, take a moment, not to brace yourself, but to consider the story behind the numbers. Are they telling you the building is being managed with care? Are they showing you that planning has been done thoughtfully? Do they invite questions rather than push them away? And most importantly, do they make you feel like you are part of the process rather than an outsider peering in?
