Bridging the skills gap: How the block management sector can future proof service charge accounting

The block management sector is wrestling with a well-documented strain on property managers; however, a quieter crisis is brewing beneath the surface. Accounting teams, often the backbone of service charge operations, are facing a growing skills gap that could threaten operational efficiency and client satisfaction if not addressed urgently.

A talent crunch with real consequences

A recent wellbeing survey by the TPI (The Property Institute) has provided useful insight into the wellbeing of members within the block management industry. Whilst much of the focus was on property managers, an equally pressing concern seems to be emerging; the future availability of skilled accounts staff.

Across all roles, the open vacancy rate stood at approximately 20%, a significant challenge in an already stretched sector. When we filter this down to purely accounting roles (a field in which MRI Software supports hundreds of block managers) the rate is even higher at 27%. The reality is that most TPI members will have at least one open role in their accounts department at any given time.

This staffing gap represents a structural bottleneck. For growth-driven organisations, it’s a hard stop. Opportunities may be turned down not due to a lack of demand, but due to a lack of capacity to deliver. This level of resource constraint undermines client service and stalls revenue potential.

The demographic dilemma

That said, the sector benefits from a wealth of experienced professionals. The survey revealed that over 40% of accounting staff have been in the industry for over a decade, and nearly 60% have been employed for more than six years. This is a testament to the industry’s ability to retain talent, but here’s where the dilemma comes in: 50% of these staff are either considering leaving or planning their exit within three years. Without succession planning, the industry risks losing significant institutional knowledge and system expertise.

Meanwhile, turnover among junior staff places an added burden on senior employees, increasing the risk of burnout and contributing to a vicious cycle of attrition. It’s clear that the industry needs support to fill this growing resource gap.

Both challenges can lead to suboptimal outcomes, with misaligned resources that could be better deployed elsewhere. Add to that the costly and time-consuming recruitment process, along with the significant time investment required to train new staff.

A case for proactive resilience

Instead of waiting for the talent gap to widen, forward-looking organisations are taking three proactive steps to future-proof their finance functions:

1. Technology and training investment: Empowering teams with the right, scalable technology, and implementing robust training programmes that drive efficiency and reduces reliance on specific individuals. This minimises single points of failure, typically caused by knowledge silos and promotes operational agility. 
2. Continued investment in existing solutions: Technologies evolve, and any system worth using will undergo continuous development. These improvements often enhance core functionality, enabling clients to unlock greater efficiencies over time. Regular system health checks and incremental configuration updates can yield notable gains while reducing reliance on headcount.
3. Co-sourcing with strategic partners: Outsourcing doesn’t have to mean loss of control. Co-sourcing models – where internal teams are supported by skilled, system-literate professionals – can provide scalable, knowledgeable support with minimal onboarding friction.  

The future of service charge accounting doesn’t lie purely in recruitment; it lies in rethinking how we structure, support, and scale our accounting teams. By embracing smarter systems, flexible resourcing models, and ongoing skills development, the block management sector can turn today’s skills gap into tomorrow’s competitive advantage.

Scaling your property management business?

MRI can provide cost-effective specialist property accounting services and back-office support to help you grow smarter.

Find out more