Opinion Flat Living what the experts thInk
Bernie Wales
Leaseholdmanagementneedsareality check
During the past 30-plusyears of beingapropertymanager,a leaseholderand investor -and latterly as a leasehold advisor - I’ve noticed thatwhere leaseholders are complaining, there is a common theme: poorservice fromtheirmanaging agent. This usuallymanifestsitselfasalackof response toemails andtelephone calls, generalinactivityapart fromsending out service charge demands, and a feeling that the managing agent doesn’t care about theleaseholderasacustomer. Wouldn’t it be good if that situation could be eliminated? Thediscontentisfar more
commonwherethe leaseholder is notthe customer.Where the managing agent is working for the freeholder,there is oftenthe feeling that themanaging agent is only interested inmakingmoney for their client – and for themselves. It is perceived that nothing happens to remedy the leaseholder’s complaints becauseitwon’tmake money for the freeholder – sowhy bother?Thatmay ormaynot be the case – but I don’t think it is the real cause of the problem. Discontent doesn’tjustarise in
freeholder/leaseholdersituations. It can also existwhere the managing agentISworking forthe leaseholder-where themanaging agent’sclientisthe Residents’ Management Company, a Right toManage Company or a Right To
EnfranchiseCompany.Atfirst sight this
seemsalittlestrange.Surely the propertymanager would want to please theclientratherthan upset them- sowhy the discontent here too? I think there are two reasons. First,there is oftena
misunderstanding–onbothsides 30
– as towhat a propertymanager is capable of doing and should be doing. Someleaseholders have theviewthatapropertymanager should deal with everything whichgoeswrongatthe property andshouldput it rightassoonas the leaseholder clicks his or her fingers.I’m sure someflatowners thinkpropertymanagers have Harry Potter’s powers and can waveamagic wandtoeliminate noise fromthestudentsupstairs or remove an abandonedcar fromthe car park. In reality the propertymanagercan only work within the terms of the lease (whichmost leaseholders haven’t read)and so itmaybedifficult and timeconsuming to remedy such a problem– even if that problemis within themanaging agent’s remit. Of course,propertymanagers
often help create this Harry Potter
syndrome.Theyare oftenkeento help andmay take on situations whichinreality areoutside their control. Rather than say no, they try hard to be helpful and they work diligently at solving a problem whichsomeone else should solve. They try to domagicwhen someone else has the wand. Thesecond reason fordiscontent
–evenwhere theleaseholder is the client – is created by the management company itself and by themanagementindustry generally. Unfortunatelyfor
TimeouT
BobSmythermanis takingabreak fromhisroleas chairmanoftheFPRAto carryout thecivicduties associated with hisresponsibilitiesasMayor of Worthing inWest Sussex.Hewill be writing for Flat Living again in 2014.
Someflat owners think property managershave Harry Potter’s
powersand canwaveamagic wand.
Property managers... are oftenkeen to help and maytakeon situations whichin reality are outsidetheir control
everyone involved,youraverage propertymanager has toomany leaseholders to listen
to.There are toomanyemailsand telephonecalls to respond to. There are toomany properties to inspectand toomuch paperwork to keep on top of.Why? Becausemanagementcompanies have tomake aprofit –and they often getthe balancebetween incomeand customer satisfaction wrong. So next timeyou’re sittingdown
to review amanagement agreement and agree fees for the next year, take a moment to look at thewider situation. Consider reality fromboth sides and seeifawin-win
canbeagreed.Isit possible to have an improved service with better outcomes in return for a highermanagement fee and a propertymanagerwho has timeto do what is needed?Wouldn’tlifeinyour block be improved by such a reality check?●
BernieWales FIoD,FIRPM,AssocRICSisanHonourary Consultantwith theFederationofPrivate Residents’Associations
Webwww.frpa.org.uk
Issue17 Flat Living
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