INTERVIEW


“Huge losses! NAEA is in financial trouble!” PBK: “As far as finances are concerned this is the situation, the NAEA is not in trouble – the 2009 deficit of £900,000 was a Board agreed deficit to enable us to invest in IT. We had significant reserves so we decided to invest some of it for future benefit. We implemented cost controls alongside the expenditure and our figures have now come out either on budget or under it. “For 2010 the board budgeted a reduced loss, and we achieved a smaller loss than budgeted for. This year, controls have been even tighter and with strong assets and increasing revenues the organisation is in good shape. Over the last four months we have reviewed our overall strategy, involved everyone in SWOT analyses, and the organisation’s direction was generally agreed. We now know where we can improve.” “The deficit was mainly due to development costs of


PropertyLive and the establishment of our IT department. But people suggest PropertyLive is costing an arm and a leg – it isn’t and there are oncoming income streams to improve its viability. It was a big investment but that is done now and developing our own IT dept has saved a fortune.”


Apparently there are plans to charge for PropertyLive? PBK: “No I never said that – members said that they would pay an additional sum if it was ringfenced for PropertyLive – so they carried out a survey and the majority of members said no. At the moment we have no intention of charging for PropertyLive. IP: “The whole site is driven by what members want, 68 per cent of members use PropertyLive – our target is 75 per cent.


ian potter arla operations manager


Have ARLA members suffered from new agents undercutting them? IP: “Absolutely, and not just in undercutting – but by not doing it properly. The potential disasters have not yet come home to roost – the influx of unprofessional agents only started about 2 years ago and most tenancies last for that – its when they come to an end and don’t get their deposit their property back – that’s when the real damage will be revealed.”


But they complain that all you do is raise fees… PBK: “Complaints may have increased but that is partly because we have raised standards and our requirements for membership. “CMP is a prime example. Our previous requirement for a form


to be signed by an accountant that the firm’s accounts are all in order was inadequate. Now we have a deeper questionnaire for the accountants – so some members complain that their accountant is charging them more. But a good accountant will check the accounts to sign off the accounts – so what is the difference? “If you are offering a lettings service but doing just 3 or 4 in some


instances – and complaining that CMP is expensive – you possibly should not be doing lettings – you won’t be fully aware of the latest legislation to offer a professional lettings service.”


What sort of professional organisation do you want? Tell us! But please, make it constructive!


But they still feel shortchanged? IP: “The PropertyLive App, is now available, and for a small cost we will white label the app for agents. So many want it – many are signing up immediately for iPad iPhone and Android versions. We also offer the PropertyLive.print App – which enables


anything – text pictures etc in PropertyLive to be dragged and dropped into templates to make adverts, emails etc. “We are doing so much but members just don’t always notice.


We have an 18 page brochure with 36 member benefits – solid useful benefits – that really help members.” PBK: “Members do not always appreciate how they can use things like CMP to promote their business, some members say ‘I don’t want to be telling landlords that I might go bust!’ But it’s the other way round – they could be saying, other


agents may not offer client money protection so if they were to go bust you would lose your money – with us that could never happen. “When I was doing a proper job, I used to explain to potential


clients that it was my job to offer a professional service – because if I didn’t they could cause me a lot of grief. What puzzles me is why they don’t use all the tools in their toolbox?”


So all members need to keep up to date? PBK:“All members need to be aware of issues across the property industry; they should go to industry conferences (NAEA, ARLA, ICBA and NAVA are supporting the PROPERTYdrum Conferences), some agents are very, knowledgeable, others have absolutely no idea what is going on in the industry outside of their area of operation. “Some members have said the board is out of


touch with the real world – how can that be? The board is made up of members who have been


elected through the organisation, by the members, for a term (renewable) of three years. “On June 10 we have director elections and we have far more


applicants than positions. We also have elections for regional reps with dozens of candidates for unpaid roles, some youngsters, some more experienced, all busy people. They’re the ones who want get involved – not the laz ones who stay in their office and grumble. “When I ask what sort of organisation do you want – some may


just want a membership organisation – more like a trade union, lobbying for members rights etc – much less than we do now. But most said that they want it to be a membership/professional/self regulatory body – we believe that is still the case and they accept it comes as a cost in terms of increased financial cost and/or effort. If we’re wrong in that understanding – tell us! But make it


constructive!”


Members – make suggestions (constructive ones!), for positive change. Email the editor: Sheila@propertydrum.com with your views.


www.propertydrum.com/articles/PBK Do you have any views on NAEA/ARLA? Log on and add your comments.


PROPERTYdrum JUNE 2011 15


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