What to Look for in Block Management Software

You took over management of your block from a professional agent. The outgoing agent handed over a folder of spreadsheets, a box of paper invoices, and a login to the buildings insurance portal. Now you need to run service charge demands, chase arrears, comply with Section 20, and produce year-end accounts — and you're wondering whether software could help.

The short answer: yes. The longer answer: most block management software is built for professional managing agents running portfolios of 50+ blocks, not for a volunteer director managing one.

This guide covers what features actually matter for self-managed blocks, what to watch out for, and how to evaluate whether a platform fits your needs and budget.

Why spreadsheets stop working

Most volunteer directors inherit spreadsheets from whoever managed the block before them. For the first year, this feels manageable. Problems emerge as the block grows more complex:

• No audit trail — who changed which number, and when?
• Lease percentages get stale — a flat is sold, the new leaseholder has different contact details, and the spreadsheet still has the old owner
• Arrears tracking is manual — you're cross-referencing bank statements with a separate demands spreadsheet
• Section 20 deadlines aren't tracked — you need a separate calendar, and nothing links the timeline to the notices you've sent
• Year-end accounts are a nightmare — re-keying data from a spreadsheet into the shape your lease and your accountant need takes hours and introduces errors

Software doesn't make these problems disappear. It structures the workflow so you're less likely to miss something.

Features that matter for self-managed blocks

1. Service charge demand generation

The core function. You need software that:

• Stores lease percentages for each unit
• Calculates individual demands automatically from a total budget
• Generates demand letters in the correct statutory format (including the landlord's name and address, as required by section 47 of the Landlord and Tenant Act 1987)
• Tracks which demands have been sent and which are outstanding

Try our free service charge demand generator to see what a compliant demand looks like.

Watch out for: Tools that only generate invoices, not statutory service charge demands. The legal requirements for a valid demand are specific — a generic invoice template won't comply.

2. Arrears tracking

You need to see, at a glance, who owes what and for how long. Key features:

• Dashboard showing all outstanding balances by unit
• Payment recording (manual or bank feed)
• Automatic ageing (14 days, 30 days, 60 days, 90+ days)
• Template chase letters at each stage
• The 18-month rule flagged visually — any cost approaching the Section 20B deadline should be highlighted
• Use our free arrears letter generator to see example chase letters at each stage

3. Section 20 consultation workflow

This is where self-managed blocks face the most risk. A missed deadline can void the entire consultation and cap recoverable costs at £250 per leaseholder. Software should:

• Walk you through all three stages step by step
• Calculate statutory deadlines automatically from your start date
• Generate notice templates for each stage
• Track leaseholder observations and contractor nominations
• Log when notices were served and how

Most professional agent software includes S20 compliance. Many tools aimed at smaller blocks do not — check before committing. Read our full S20 guide for the process detail, or try our free Section 20 timeline calculator to see how the deadlines work.

4. Year-end service charge accounts

What your block must produce at year end — in what format, and certified by whom — is set by your lease, not by a general statutory rule. RICS/ICAEW guidance recommends a shape for it: an accruals basis, expenditure shown by category, surplus or deficit carried forward, the reserve fund balance kept separate, and an independent accountant's report. That is best practice and a likely lease requirement rather than a statutory duty in itself.

Separately, section 21 of the Landlord and Tenant Act 1985 gives any leaseholder the right to request a written summary of the relevant costs for a 12-month period. Section 21(4): the landlord "shall comply with the request within one month of the request or within six months of the end of the period referred to in subsection (1)(a) or (b) whichever is the later." Section 21(6): where the service charges are payable by "the tenants of more than four dwellings", the summary "shall be certified by a qualified accountant".

⚠️ Follow that link to the point-in-time version, not the default view. The default /section/21 page shows a substituted section 21, commenced only so far as it confers a regulation-making power — it contains neither "more than four dwellings" nor "qualified accountant". The text that remains in force is the 1996 point-in-time version linked above.

Software should keep the underlying records clean — every demand, payment and cost categorised, with the reserve fund held separately — so your accountant works from that rather than re-keying data from separate spreadsheets.

5. Companies House reminders

RTM companies and RMCs must file an annual confirmation statement with Companies House. Missing the deadline can lead to enforcement action and ultimately the company being struck off the register. Software with automated reminders for this (and insurance renewal, gas safety certificates, and other recurring deadlines) prevents costly oversights.

Features that don't matter (yet)

For a small self-managed block, some features commonly listed in block management software are unnecessary:

• Portfolio management — you manage one block, not fifty
• Contractor management platforms — you use local tradespeople, not a managed supply chain
• Resident portals with messaging — a WhatsApp group works fine for 12 leaseholders
• Mobile apps — nice to have, but not a reason to choose one platform over another
• API integrations — unless you're connecting to external accounting software, skip this

Pricing: what to expect

Block management software pricing varies widely (our UK comparison of the options explains per-unit versus flat pricing):

Volunteer directors should look at the entry tier. If the pricing is per-unit rather than per-block, calculate the total for your block size — per-unit pricing can scale surprisingly fast for blocks of 15+ flats.

Red flags on pricing:

• Hidden setup fees
• Per-user charges (you might have 3-4 directors who need access)
• Contracts longer than monthly or annual
• Pricing that requires a sales call to discover

Evaluation checklist

Before committing to any platform:

• Does it generate statutory service charge demands (not just invoices)?
• Does it track arrears with ageing and chase letter templates?
• Does it include Section 20 consultation workflow?
• Does it produce year-end accounts in the standard format?
• Is the pricing per-block (flat rate) or per-unit?
• Can multiple directors access it without per-seat charges?
• Is there a free trial long enough to enter real data?
• Does it handle your block size (number of units)?
• Are guided workflows included, or does it assume property management knowledge?
• Is the platform actively maintained (last update within 6 months)?

If your main need is the financial side rather than full block management, our guide to service charge software options covers the narrower category of tools focused on demands, arrears, and accounting.

Sources

• Landlord and Tenant Act 1987, section 47 (landlord's name and address on demands)
• RICS — Service Charge Residential Management Code

This guide is for general information only. Always check the specific requirements for your lease and jurisdiction before choosing software or changing your management processes.