Stakeholder roles, relationships and main tasks

What is a stakeholder?

Managing a block of flats consists of managing:

• the communal areas of the building
• the people who live there
• the people who own the flat
• those who work there and
• those who deliver services to the communal parts of the building or estate.

This section focuses on the ‘people’ element of managing a block of flats, referred to as stakeholders. It also provides clarity as to the specific roles and relationships between stakeholders, providing an understanding of their different concerns and obligations. This will aid in the development of a cohesive management strategy that offers improved transparency and trust between the people that work together in providing and receiving communal services.

The term stakeholder defines a person or entity that has an interest or concern in something. In this case, people who have an interest or concern in the property that:

• they live in communally with others
• they hold as an investment or
• relates to the proper maintenance and safety of those providing or administering services to the building and its occupants.

You need to understand the differing stake and focus of each of stakeholder before accepting an appointment to manage a communal building or estate. This approach helps to identify the potential for future dispute. RICS members and associate members should refer to the current editions of RICS’ professional standards when assessing stakeholder intentions.

There are two principal stakeholder roles, which ought to be complementary, but are sometimes conflicting and give rise to dispute. This is usually due to a difference of opinion as to how services should be priced and delivered. These two roles are:

• stakeholders who deliver communal services and
• stakeholders who receive communal services.

This section is maintained by Mark Habib of Block Property Management Ltd.

RICS standards: Real estate management

RICS standards: Service charge residential management code