Reforming Leasehold Practices: Government's Response to Industry Challenges

Leasehold reform is badly needed to protect the public from rogue operators and to promote the reputation of professional property agents. After years of being deaf to the sector's problems, government is now listening and has set up working groups to look at the key issues.

Addressing the Need for Regulation in Property Management

The framework within which all property agents’ work is one of the areas being considered and block management is on the Government's agenda. At the moment, anyone can set up in business as a property manager. You need no professionally-recognised qualifications and there is no industry-wide code of practice to safeguard residents. Chartered surveyors working as property managers are governed by the Royal Institution of Chartered Surveyor's professional standards. In this way they maintain their reputation and protect their clients' interests. Property management companies which are members of the Association of Residential Managing Agents (ARMA) must meet their trade body's quality benchmark or risk losing their ARMA member status. And the Institute of Residential Property Management qualifies property managers to a standard that most employers recognise and respect. But there is no legislation in place to back best practice across the board and the sector is open to potential abuse.

Transforming the Property Market: Government Initiatives for Better Regulation

All this could be about to change - for the better we hope. The Government has set up a Regulation of Property Agents working group chaired by Lord Best. It aims to come up with recommendations on mandatory qualifications, a code of practice and regulation of residential property agents, across sales, lettings and block management. The aim is for this new regime to be consistent across the whole sector. It would mean tenants, homebuyers and sellers could be confident they are getting a professional service from their property agents - and are being charged fairly for it.

The Importance of Qualifications in Property Management amid Legislative Changes

The group will report back to government this summer, but it could be some time before new legislation (if this is the recommendation) is fleshed out and put to Parliament. So, in the meantime, if you are responsible for appointing a property manager for your block, what should you look out for? Well, qualifications are a good start. Using an ARMA member firm or one that employs RICS or IRPM-qualified staff (or both) ensures you have some comeback if your property manager doesn't perform. ARMA and the RICS both enforce a complaints system on their members and the organisations themselves deal with problem members.

Evaluating Property Management: Experience and Quality over Cost

The other important aspect is experience. Does the property manager you are considering have other blocks on their books that are similar to yours? If so, contact their residents association if they have one, or try and find a friendly flat owner or renter who you can talk to. Find out if they are satisfied with the company's performance. Property management is a people business, so interview several potential firms to find one you and your fellow residents will feel confident and comfortable working with. And finally, resist the temptation to go for the cheapest fee. Your block manager will be looking after your biggest asset your home so make sure he or she is properly qualified and will deliver the level of service you expect.