Management Fees Under the 2026 RICS Code: Where the Opportunity Lies for Agents

The fourth edition of the RICS Service Charge Residential Management Code is now the approved code for England, coming into force on 7 April 2026 and superseding  the 2016 edition.

Most of the early conversation on the new edition has centred on transparency and building safety, and rightly so. But there’s a quieter change that deserves attention, because it opens a real opportunity for the way agents price their work.

The Code has stepped back from stating how to set management fees.

So, what has actually changed?

Earlier editions leaned firmly towards a fee set per unit. The new Code drops that as the default expectation. In its place is something simpler and more principled: your charges must be reasonable and proportionate to the tasks involved, and they must be pre-agreed with your client.

This flexibility is deliberate, and the Code says as much, noting that prescribing one fee model “would tend to imply a ‘one size fits all’ culture and may discourage innovation and the flexibility that bespoke service delivery can offer.” In other words, the regulator is actively inviting us to design fee structures around what a client genuinely needs.

Why this is good news

Leaseholders pay management fees through the service charge, so naturally they want clarity on what they’re paying for. Landlords want a service that fits their building and their priorities. Those two expectations haven’t always sat neatly together.

The beauty of the new approach is that you can serve both at once. Instead of stretching a single model across every instruction, you match the structure to the work in front of you. That’s better for the client relationship, better for the leaseholder experience, and a clearer way to show the value you bring.

It also plays to the strengths of agents who can explain their service well. When the fee reflects a defined scope, value conversations get easier and challenges become less. That’s a win worth having.

The models now open to you

A few options are worth weighing up, each suited to different circumstances.

Per unit

Still completely valid, and great for budgeting and predictability. The caveat is that agents often put in considerably more time across a year than a flat per-unit fee assumes. It works best where the workload is stable and well understood.

Hourly

This suits situations where the scope is harder to call, such as during the first year on a new development. The fee can move, so the practical requirement is to keep your client and leaseholders informed on a regular basis.

Tiered service packages

The Code specifically recognises that agents often offer different levels of service, and that bolt-ons should be priced transparently and made clear to leaseholders. Some landlords want a leaner day-to-day service and would rather pay extra only when they need it, say for additional site visits or meetings. Packaging your services this way hands clients control, and gives you a clear basis for every charge.

The thread running through all of these is simple. Set the fee however you and your client agree, as long as it’s reasonable, proportionate, pre-agreed, and clearly communicated.

It’s worth noting that unless specified by the lease, management fees that are based on a percentage of the service charge are still unlikely to be seen as acceptable due to the potential conflict of interest this creates.

SAY’s view

The 2026 Code doesn’t tell us how to charge. It asks us to charge thoughtfully. That’s a meaningful difference, and a welcome one.

For agents willing to design fee structures around genuine service and value, this flexibility is an invitation to lead. The requirements are clear, the principles are sound, and the room to innovate is real. The opportunity now is simply to use it well.

If you would like help reviewing your management agreements or shaping a fee model that fits each instruction, get in touch with the SAY team.